IMPORTANT ANNOUNCEMENT : MUST READ BEFORE PROCESSING SEPTEMBER 2022 PAYROLL
TO ALL PAYROLL MASTERS, TAKE NOTE THAT THE WAGE CEILING LIMIT FOR MONTHLY SOCSO & EIS CONTRIBUTIONS HAS BEEN INCREASED.
The Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) have been amended respectively, following an increment to the wage ceiling limit for monthly SOCSO and EIS contributions from RM4,000 to RM5,000 a month.
This new amendment enforced by PERKESO, takes effect from 1st September 2022. The result of this is higher SOCSO and EIS contributions for employees with wages over RM4,000 per month. For employees with salaries exceeding RM5,000 per month, the contribution amount is subject to the wage ceiling of RM5,000. Hence, the SOCSO and EIS contribution payment for the month of September 2022 and the subsequent months, shall be made by the employer according to the new wage ceiling limit.
For more information, you may refer to :
1. PERKESO's new SOCSO & EIS Rate of Contribution table here.
2. PERKESO EMPLOYERS’ CIRCULAR NO. 1 YEAR 2022 as attached below.
In abiding by this update, we at BrioHR, have auto-updated the system to reflect these amendments.
HERE'S WHAT YOU NEED TO TAKE NOTE OF :
1. The increment in wage ceiling limit, covers all contributions under PERKESO namely, EIS and both categories of SOCSO.
2. The payroll processor who runs the September 2022 payroll using BrioHR, will see an increase in SOCSO and EIS contributions for the month of September and all subsequent months, compared to the contributions for the month of August 2022. (Especially for employees with a salary of more than RM4,000.)
3. The HR/Admin DOES NOT need to make any changes to the employees' payroll information at their respective profiles, as the BrioHR system will automatically capture the updates to be applied when the September 2022 payroll is processed.
Have questions?
Contact our friendly BrioHR Client Success team via chat, or email us at support@briohr.com. We're always happy to help!