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Social security in Malaysia 2026
The big deduction is retirement savings, not tax: 11% of your wages goes to the Employees Provident Fund (EPF), your own account rather than a pooled state fund.
The safety-net add-ons are tiny — injury cover through the Social Security Organisation costs at most MYR 29.75 a month and job-loss insurance 0.2% on capped wages.
At a glance
- top rate
- 11% of wages (EPF), uncapped
- entry band
- Foreign employees: 2% from October 2025
- tax year basis
- Monthly, withheld by the employer
- filing deadline
- Employer pays by the 15th of the following month
- residency basis
- Follows employment in Malaysia
- regime flag
- Employees aged 60+ no longer contribute
Rates
What workers pay (2026)
| Rate / amount | Base | Applies to |
|---|---|---|
| 11% | Monthly remuneration, no ceiling | Malaysian employees — Employees Provident Fund (EPF) |
| 2% | Monthly wages | Foreign employees with valid passes, from October 2025 wages (employer adds 2%) |
| Up to MYR 29.75/month | Wages capped at MYR 6,000/month | Injury and invalidity cover via the Social Security Organisation (SOCSO) |
| 0.2% | Wages capped at MYR 6,000/month | Employment Insurance System job-loss cover — ages 18-60, not foreign employees |
| MYR 157.20 – 592.80/year | Chosen insured earnings of MYR 1,050 – 3,950/month | Self-employed scheme — drivers, delivery riders and 19 other sectors |
Thresholds & allowances
- Tax reliefMYR 4,000 + MYR 350
MYR 4,000 for retirement-fund contributions; MYR 350 for Social Security Organisation and job-loss cover
- Private retirement schemeMYR 3,000 relief
Voluntary top-up scheme to 2030; withdrawals before 55 face an 8% withholding
- Voluntary self-employed savingUp to MYR 500/month
Self-employed people and pensioners can pay into the Employees Provident Fund by choice
Residency
Residency trigger
Contributions attach to employment in Malaysia; citizenship sets the rate — 11% for Malaysians, 2% for foreign staff since October 2025.
Non-resident treatment
No Malaysian employment, no contributions; domestic workers are excluded from the foreign-employee rule.
Notes
- Employers add 12-13% on top of your 11% for Malaysians — the account is personal and withdrawable at 55.
- Employees aged 60 and above stopped contributing from 2019.
- Fund contributions, gains and withdrawals after age 55 are tax-exempt; early private-retirement-scheme withdrawals face an 8% withholding unless due to disability, serious disease, death or leaving Malaysia for good.
- Job-loss insurance does not cover foreign employees, and first-time contributors aged 57+ are exempt.
FAQ
How much goes to social security in Malaysia?
11% of wages to the retirement fund, plus at most about MYR 42 a month for injury and job-loss cover — far below European-style payroll charges.
Do foreigners working in Malaysia pay into the retirement fund?
Yes, since October 2025 — 2% of monthly wages, matched by 2% from the employer; domestic workers are excluded.
Figures: tax year 2026, compiled from public sources. Not tax advice.