Maximum contribution rate under Employees’ Social Security Act and Employment Insurance System Act to be increased

In 2022, amendments were made to the Employees’ Social Security Act 1969 (‘SOCSO Act’) and the Employment Insurance System Act 2017 (‘EIS Act’) to increase the maximum limit of the monthly wages of an employee from RM4,000 to RM5,000 per month for the purposes of determining the contribution and coverage under the said Acts.
Barely two years on, the Dewan Rakyat (House of Representatives) has once again legislated to further increase the maximum limit of the monthly wages for the above-referred purposes to RM6,000 per month by passing the following Bills on 26 June 2024: 
(collectively the “Bills”).
Consequent to this, the rates of contribution in certain schedules to the SOCSO Act and the EIS Act will also be amended pursuant to the Bills.
The Bills will next be tabled before the Dewan Negara (Senate), and if passed, be presented for Royal Assent and gazetted. Thereafter, the amendments will come into operation on a date to be appointed by the Minister of Human Resources by notification in the Gazette.
Alert by Sara Lau (Partner) of the Employment Practice of Skrine.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact