Director Fee Need To Pay Socso

All employees who are employed under a contract of service or apprenticeship in the private sector and contractual temporary staff of federal state government as well as federal state statutory bodies need to be registered and covered by socso.

Director fee need to pay socso. All renumeration or wages stated below and payable to staff workers are subject to socso contributions. A director can be employed in a dual capacity i e as a director who is the directing mind and will of the company and who can formulate and determine policies. Payments subject to socso contribution wages for contribution purposes refers to all remuneration payable in money by an employer to an employee. Wages subject to socso contribution.

If the situation persists by 2029 the reserves would be completely gone. Director s fee is normally paid out once or twice a year. All companies in malaysia must register itself with socso within 30 days from the day it starts the employment of employees. The company will pay 1 75 while the employees to contribute 0 5 of their salary for the employment injury insurance scheme and the invalidity pension scheme where the rates are depending on the total monthly wages.

The rate of contribution is capped at monthly wage ceiling of rm4 000 00. According to socso s chief executive if the amendments had not been made by 2018 the collections verses the benefit would be equal. Only subjected to pcb not epf or socso. Contributions coverage of the workers social security act 1969 employers are required to pay monthly contributions for each eligible employee according to the rate specified under the employees social security act 1969.

Not all wages payments to staff workers are subject to socso contribution and there are certain wages excluded from socso contribution. For further clarification on definition of wages kindly contact socso offices or customer service careline at 1 300 22 8000. Which payments are subject to socso contribution and which are exempted. He can also be an employee on a contract of employment if you are still on a contract of employment for which you are paid salary separately then you need to contribute to the epf based.