What is the EIS contribution rate in Malaysia?

EIS is 0.2% from the employee and 0.2% from the employer, applied through a gazetted wage-band table capped at RM6,000 of monthly wages. At the top band each side contributes RM11.90 a month. The rates are unchanged for 2026.

Who has to contribute to EIS?

Malaysian citizens and permanent residents aged 18 to 59. Foreign workers are excluded from EIS entirely, contributions stop once the employee reaches 60, and an employee first covered at 57 or older with no prior EIS contribution is exempt for life.

Is EIS the same as SOCSO?

No. Both are administered by PERKESO and share the same RM6,000 ceiling and wage-band structure, but they are separate schemes under separate acts. SOCSO sits under Act 4 and covers employment injury and invalidity; EIS sits under Act 800 and provides benefits after loss of employment.

Do employers pay EIS for foreign workers?

No. EIS coverage under Act 800 is limited to Malaysian citizens and permanent residents. Foreign workers still fall under SOCSO and, from 1 June 2026, SKBBK.

EIS (SIP) contribution rates in Malaysia (2026)

The Employment Insurance System is the smallest statutory deduction on a Malaysian payslip and the one with the tightest eligibility rules. The rate is simple; deciding who contributes is where payroll gets it wrong.

Figures verified June 2026 against KWSP, PERKESO, LHDN and HRD Corp guidance. General information, not tax or legal advice.

The 0.2% rates and the ceiling

EIS, or SIP in Malay, is administered by PERKESO under the Employment Insurance System Act 2017 (Act 800). It provides benefits after loss of employment, funded by 0.2% from the employee and 0.2% from the employer.

Like SOCSO, it is applied through a gazetted band table rather than as a live percentage, and it shares the same RM6,000 monthly wage ceiling. At the top band each side contributes RM11.90 a month, which is the most EIS can ever cost either party. The rates are unchanged for 2026.

Contribution table extract

Above the irregular bands at the bottom of the scale, the table settles into a clean step of RM0.20 per RM100 of wages. The extract below spans the range; take the full schedule from PERKESO.

EIS contribution amounts for selected wage bands, 2026
Monthly wages up to	Employee	Employer
RM 30	RM 0.00	RM 0.00
RM 100	RM 0.20	RM 0.20
RM 300	RM 0.50	RM 0.50
RM 500	RM 0.90	RM 0.90
RM 1,000	RM 1.90	RM 1.90
RM 2,000	RM 3.90	RM 3.90
RM 3,000	RM 5.90	RM 5.90
RM 4,000	RM 7.90	RM 7.90
RM 5,000	RM 9.90	RM 9.90
RM 6,000 and above	RM 11.90	RM 11.90

Extract from the PERKESO Act 800 schedule in force for 2026. The employee and employer amounts are always identical.

Bands are lower-exclusive and upper-inclusive, exactly as in the SOCSO table: a wage of exactly RM3,000 sits in the band ending at RM3,000.

Who is covered

This is where EIS diverges sharply from the other statutory schemes. Three rules switch contributions off entirely.

Malaysian citizens and permanent residents only. Foreign workers are excluded from EIS altogether. They remain within SOCSO, and from 1 June 2026 they contribute to SKBBK.
Aged 18 to 59. Contributions stop once the employee reaches 60. There is no reduced older-worker scale as there is for EPF.
Not first covered at 57 or older. An employee first covered at age 57 or above with no prior EIS contribution is exempt for life, because they could never accumulate the qualifying contributions.

A common payroll error

Foreign workers with a SOCSO line but no EIS line look like a configuration mistake and get "fixed" into one. They are correct: SOCSO covers them, EIS does not.

How EIS differs from SOCSO

Both schemes are run by PERKESO, share the RM6,000 ceiling, use the same band structure and are remitted on the same file, which is why they are so often treated as one deduction. They are separate schemes under separate legislation.

EIS compared with SOCSO
	SOCSO (Act 4)	EIS (Act 800)
Protects against	Employment injury and invalidity	Loss of employment
Foreign workers	Covered	Not covered
Age range	All ages, category changes at 60	18 to 59
Employee pays	Category 1 only	Always, when eligible
Top band each month	RM 29.75 employee	RM 11.90 employee

Paying and reporting

Contributions for a wage month are payable by the 15th of the following month.
EIS is remitted together with SOCSO through PERKESO's ASSIST portal on a single combined contribution file.
Employee EIS contributions attract PCB relief, sharing a combined RM350 a year restriction with employee SOCSO. See the PCB calculation guide.

Official sources

Frequently asked questions

What is the EIS contribution rate in Malaysia?: EIS is 0.2% from the employee and 0.2% from the employer, applied through a gazetted wage-band table capped at RM6,000 of monthly wages. At the top band each side contributes RM11.90 a month. The rates are unchanged for 2026.
Who has to contribute to EIS?: Malaysian citizens and permanent residents aged 18 to 59. Foreign workers are excluded from EIS entirely, contributions stop once the employee reaches 60, and an employee first covered at 57 or older with no prior EIS contribution is exempt for life.
Is EIS the same as SOCSO?: No. Both are administered by PERKESO and share the same RM6,000 ceiling and wage-band structure, but they are separate schemes under separate acts. SOCSO sits under Act 4 and covers employment injury and invalidity; EIS sits under Act 800 and provides benefits after loss of employment.
Do employers pay EIS for foreign workers?: No. EIS coverage under Act 800 is limited to Malaysian citizens and permanent residents. Foreign workers still fall under SOCSO and, from 1 June 2026, SKBBK.