Cloud Payroll - What is the difference between SOCSO Category 1 and Category 2

Question : What is the difference between SOCSO Category 1 and Category 2

Answer :

SOCSO Category 1 : Employment Injury and Invalidity Scheme

For employees who are less than 60 years of age, contributions payable by employers and employees are for the Employment Injury Scheme and the Invalidity Scheme.
The contribution rates under this category are 1.75% for employer and 0.5% of employees’ monthly wages.
All of these contribution rate follows the contribution table which is listed and can be found in PERKESOs’ website.

Note : Employees that have not reached the age of 60 and above, will be contributing under the first SOCSO category.

SOCSO Category 2 : Employment Injury Scheme

The contribution rate under this category is 1.25% of the employees’ monthly wages, borne by the employer, based on the contribution table.
All employees who have reached the age of 60 and foreign workers must be covered under this category for the Employment Injury Scheme only.

You may preview the contribution rate / table accordingly at PERKESO’s website:

https://www.perkeso.gov.my/en/rate-of-contribution.html

By WaiKit 231221, Azirah 231221, P231221