Employees and employers in Malaysia, take note! There’s a recent change you need to be aware of regarding contributions to the Social Security Organisation (Perkeso).
Effective October 1, 2024, Perkeso has raised the wage ceiling for monthly contributions from RM5,000 to RM6,000. This means that both employees and employers will need to adjust their contributions based on this new limit.
What does this mean for you?
- Employees: If your monthly salary falls between RM5,000 and RM6,000, your Perkeso contributions will be calculated based on the new wage ceiling. This could potentially lead to a slight increase in your monthly deductions. However, this also translates to potentially higher benefits upon eligibility.
- Employers: You’ll need to adjust your payroll system to reflect the increased wage ceiling. Ensure you’re contributing the correct amount based on your employees’ salaries, particularly for those earning between RM5,000 and RM6,000.
Benefits of the Increased Wage Ceiling:
- Enhanced benefits for employees: The higher wage ceiling allows for a potential increase in benefits under Perkeso schemes such as Temporary Disability Benefit, Permanent Disability Benefit, Dependants’ Benefit, Invalidity Pension, and Survivors’ Pension.
- Improved social security coverage: This change ensures that employees earning above RM5,000 are also adequately covered by Perkeso’s social security benefits.
Staying informed:
For complete details and official guidelines, you can refer to the Perkeso Employer Circular No. 3 Year 2024 here. You may also find other important documents such as FAQ and the new table here. For further assistance, don’t hesitate to contact qualified professionals like MYWave. We will be ready to serve you!
This blog post serves as a general informational piece. Please consult with Perkeso for specific questions regarding your individual situation.
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