New SOCSO Contribution Wage Limit Rises to RM6,000

Starting today, the wage limit for SOCSO contributions has been increased from RM5,000 to RM6,000 under the Workers’ Social Security Act 1969 and the Employment Insurance System Act 2017 following the approval from The Dewan Rakyat for amendments in June 2024. This change, effective today, will require employees earning up to RM6,000 to contribute to SOCSO’s safety net, extending coverage to more workers.

The amendments, presented by Human Resources Minister Steven Sim Chee Keong, were unanimously approved, with support from all Members of Parliament. The wage ceiling increase will enhance benefits such as disability pensions and the Job Search Allowance, benefiting 1.45 million workers and their families.

This reform is part of the government’s efforts to address rising living costs and improve social protection. The increase in benefit payments is expected to exceed 20%, providing a stronger safety net for employees. Additionally, the expanded wage limit will allow SOCSO to accumulate more contributions, which are hoped to be used effectively.