The Employees’ Social Security Act 1969 (‘SOCSO Act’) and the Employment Insurance System Act 2017 (‘EIS Act’) have been amended by the Employees’ Social Security (Amendment) Act 2022 (‘SOCSO Amendment Act’) and the Employment Insurance System (Amendment) Act 2022 (‘EIS Amendment Act’) respectively from 1 September 2022.
 
The main amendment made to the SOCSO Act under the SOCSO Amendment Act is to increase the maximum limit of the insurable amount of monthly wages of an employee from RM4,000 to RM5,000 per month. 
 
Similarly, the main amendment made to the EIS Act under the EIS Amendment Act is to increase the maximum limit of the insurable amount of wages of an employee from RM4,000 to RM5,000 per month. 
 
Consequent on the above-referred amendments, the rates of contribution in certain schedules to the SOCSO Act and the EIS Act have also been amended pursuant to the SOCSO Amendment Act and the EIS Amendment Act respectively.
 
Our write-ups on the amendments, when the amendment acts were in the form of Parliamentary Bills, can be accessed here and here.
 
Alert by Foo Siew Li (Partner) and 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 skrine@skrine.com.