SOCSO Tax Relief Malaysia 2026 — RM 350 That Every Employee Can Claim (YA 2025)
Every salaried Malaysian has SOCSO deducted from their payslip every month — yet only half actually verify they claimed the RM 350 tax relief in e-Filing. Here's what it is, how much you save, and what to check before you submit Form BE.
What Is SOCSO Tax Relief?
SOCSO (Pertubuhan Keselamatan Sosial / PERKESO) is Malaysia's Social Security Organisation. Every private sector employee in Malaysia has two mandatory monthly deductions:
- SOCSO contribution: 1.75% of salary (employee share) — covers Employment Injury Insurance and Invalidity Pension
- EIS contribution: 0.2% of salary (employee share) — covers the Employment Insurance Scheme (Skim Insurans Pekerjaan / SIP) for retrenchment benefits
Both contributions — SOCSO and EIS — qualify for income tax relief under the Income Tax Act 1967. The combined relief is capped at RM 350 per year. This is a standalone relief category, separate from your EPF relief (RM 4,000) and insurance reliefs (RM 3,000 × 3).
Unlike lifestyle relief (you need receipts) or SSPN (you need to deposit money), SOCSO has been automatically deducted from your salary for the entire year. The tax relief is essentially free — you just need to confirm it appears in your e-Filing Form BE before clicking Submit.
How Much SOCSO Do You Actually Pay Per Month?
Your actual SOCSO + EIS deduction depends on your salary. For most employees earning above RM 1,500/month, the annual total exceeds RM 350 — meaning you claim the full cap regardless.
| Monthly Salary | Monthly SOCSO (1.75%) | Monthly EIS (0.2%) | Annual Total | Relief Claimable |
|---|---|---|---|---|
| RM 1,500 | RM 26.25 | RM 3.00 | RM 351 | RM 350 (cap) |
| RM 2,000 | RM 35.00 | RM 4.00 | RM 468 | RM 350 (cap) |
| RM 3,000 | RM 52.50 | RM 6.00 | RM 702 | RM 350 (cap) |
| RM 5,000 | RM 87.50 | RM 10.00 | RM 1,170 | RM 350 (cap) |
| RM 800 (part-year / low-income) | RM 14.00 | RM 1.60 | RM 187 | RM 187 (actual) |
* SOCSO contributions are capped at a maximum insurable salary of RM 5,000/month. Employees earning above RM 5,000 still contribute based on RM 5,000. EIS is similarly capped. Rates shown are approximate — verify against your payslip.
Tax Savings from the RM 350 SOCSO Relief
The RM 350 relief reduces your chargeable income. Here's how much you save at each tax bracket:
| Chargeable Income Range | Tax Rate | SOCSO Relief Saves |
|---|---|---|
| RM 20,001 – RM 35,000 | 3% | RM 10.50/year |
| RM 35,001 – RM 50,000 | 8% | RM 28.00/year |
| RM 50,001 – RM 70,000 | 13% | RM 45.50/year |
| RM 70,001 – RM 100,000 | 21% | RM 73.50/year |
| RM 100,001 – RM 250,000 | 24% | RM 84.00/year |
| RM 250,001 – RM 400,000 | 24.5% | RM 85.75/year |
These savings are small individually — but SOCSO relief is one of more than 20 reliefs you can stack. When combined with EPF (RM 4,000), lifestyle (RM 2,500), insurance (RM 3,000+), and others, your total relief stack can reduce your tax by thousands.
Where Is SOCSO in e-Filing Form BE?
In MyTax, when you open your Form BE for YA 2025, navigate to Part F — Pelepasan dan Rebat (Reliefs and Rebates). Look for the field labelled:
- "Caruman kepada PERKESO" (SOCSO contributions) — should show your annual SOCSO employee deduction
- "Caruman kepada Skim Insurans Pekerjaan (EIS/SIP)" — sometimes listed as a separate line or combined with SOCSO
For most salaried employees, this field is auto-populated from your employer's SOCSO submission. Verify that the figure shown is reasonable (close to RM 350 for a full-year employee) before proceeding.
- Your employer's SOCSO submission to PERKESO was delayed
- You changed employers mid-year and one EA Form was not linked
- You are self-employed (SESSS) — must manually enter contributions
- You worked on a contract basis and SOCSO was not correctly deducted
4 Common SOCSO Situations and What to Do
✅ Full-year salaried employee (same employer)
SOCSO auto-populated. Just verify the field shows a number near RM 350 before submitting. If it does — you're done, claim it.
⚠️ Changed employers mid-year
Collect both Form EAs. Add the SOCSO deductions from each, cap at RM 350, and enter manually if the auto-fill shows a lower number.
⚠️ Part-year employment (resigned, retrenched, or new grad)
You claim your actual contribution, not RM 350. Calculate from your payslips or Form EA — likely RM 50–280 for partial years.
🔴 Self-employed under SESSS
SOCSO is NEVER auto-filled for self-employed. You must manually enter your annual SESSS contributions (from PERKESO payment receipts) in Form B, capped at RM 350.
Self-Employed: How to Claim SOCSO Relief Under SESSS
The Self-Employment Social Security Scheme (SESSS / Skim Perlindungan Sosial Pekerjaan Sendiri) allows freelancers, sole traders, Grab drivers, Shopee sellers, and other self-employed Malaysians to voluntarily contribute to SOCSO.
Monthly contribution under SESSS: RM 61.15 (for declared income up to RM 4,000/month). Annual total: approximately RM 734 — which means self-employed SESSS contributors also hit the RM 350 relief cap.
- Confirm your SESSS registration at perkeso.gov.my or the PERKESO Assist app — ensure you are an active contributor for YA 2025.
- Download your contribution statement from PERKESO Assist or online portal — shows total annual contributions for the calendar year.
- Log in to MyTax → e-Filing → Form B (not Form BE — self-employed use Form B).
- Navigate to Part F (Pelepasan) and find the SOCSO/PERKESO field.
- Enter your total 2025 SESSS contributions from your statement, capped at RM 350.
- Keep your PERKESO statement as supporting document — LHDN may request it during audit.
You can register at any PERKESO branch or online at perkeso.gov.my. Contributions for 2026 (YA 2026) would be claimable in next year's tax filing. It also provides valuable Employment Injury Insurance (covers work-related accidents) for RM 61.15/month — one of the lowest-cost insurance products available to self-employed Malaysians.
SOCSO vs Other Payroll Deductions — What's Claimable?
| Payroll Deduction | Tax Relief Available? | Maximum | Auto-Filled? |
|---|---|---|---|
| EPF (KWSP) | ✅ Yes | RM 4,000/year | ✅ Yes (from KWSP data) |
| SOCSO (PERKESO) | ✅ Yes | RM 350/year | ⚠️ Usually yes (verify) |
| EIS (SIP) | ✅ Yes (combined with SOCSO) | Shared RM 350 cap | ⚠️ Usually yes (verify) |
| Income tax (PCB) | ❌ No (it IS the tax) | — | — |
| Union dues / co-operative deductions | ❌ No | — | — |
| PTPTN loan repayment | ❌ No (no relief for PTPTN repayment) | — | — |
Note: EPF and SOCSO/EIS are in separate relief categories with separate caps. Claiming both RM 4,000 EPF and RM 350 SOCSO simultaneously is correct — they do not share a single combined limit.
📊 Track All 24 Reliefs (Including SOCSO) with the Malaysia Tax Planner 2026
The Tax Planner's Relief Tracker tab covers all 24 Malaysian income tax reliefs for YA 2025 — EPF, SOCSO, lifestyle, insurance, SSPN, medical, and more. Stack every relief you're entitled to and see your exact tax liability in one Excel file.
Download Tax Planner 2026 — RM 42Frequently Asked Questions — SOCSO Tax Relief Malaysia 2026
Yes. Employee contributions to SOCSO (Social Security Organisation / PERKESO) and EIS (Employment Insurance Scheme / Skim Insurans Pekerjaan) both qualify as income tax relief in Malaysia for YA 2025. The combined relief is capped at RM 350 per year. For most salaried employees earning RM 1,500/month or more, annual SOCSO+EIS deductions exceed RM 350, so you effectively claim the full RM 350 cap. At the 19% tax bracket, this saves RM 66.50 annually — small, but it is already deducted from your payslip every month.
The SOCSO (PERKESO + EIS) income tax relief is capped at RM 350 per year for YA 2025. This is not a separate relief from your insurance reliefs — it is its own independent RM 350 category. Your actual SOCSO+EIS contributions are entered (or auto-populated) in Form BE Part F under 'Caruman kepada PERKESO / EIS.' If your actual contributions were less than RM 350 (e.g., you only worked part of 2025), you claim the actual lower amount. Most full-year employees claim the full RM 350.
For most salaried employees, yes — SOCSO contributions are auto-populated in your Form BE from your employer's SOCSO submission and your Form EA. However, you should verify it is there. Three situations where it may NOT be pre-filled: (1) You changed employers mid-year and your new employer's SOCSO submission is delayed. (2) You had gaps in employment (contract-to-contract) where SOCSO was not paid continuously. (3) You are self-employed under SESSS (voluntary SOCSO) — in this case it is NEVER pre-filled and you must manually claim it. Always check the 'Caruman PERKESO/EIS' field before submitting.
EIS stands for Employment Insurance Scheme (Skim Insurans Pekerjaan), managed by SOCSO/PERKESO since 2018. It provides unemployment benefits for employees who are retrenched. The employee EIS contribution rate is 0.2% of monthly salary, capped at RM 4.25/month (RM 51/year for employees earning RM 4,000+ per month). EIS contributions count toward the same RM 350 SOCSO tax relief — they are not a separate RM 350 category. Your Form EA should show SOCSO + EIS combined as your annual PERKESO deduction.
Yes, if you have voluntarily registered under SOCSO's Self-Employment Social Security Scheme (SESSS / Skim Perlindungan Sosial Pekerjaan Sendiri). Under SESSS, self-employed workers can contribute RM 61.15/month (for declared income up to RM 4,000/month) for Employment Injury and Invalidity Pension coverage. These voluntary SESSS contributions also qualify for the RM 350 SOCSO tax relief. However, unlike salaried employees (auto-populated), self-employed workers MUST manually claim this in Form B under the PERKESO relief field — it will not be pre-filled.
In MyTax e-Filing Form BE, SOCSO appears in Part F (Pelepasan / Reliefs) under the section 'Caruman kepada PERKESO dan EIS' or similar PERKESO-labelled field. It is listed separately from the insurance reliefs (B5a/B5b) and EPF. The field should show your employer-contributed SOCSO deductions from your annual Form EA payslip summary. The cap is RM 350 — if a larger number appears (unusual), it will be automatically capped by the system. If it shows RM 0 and you worked the full year, something is wrong — check your Form EA for your annual SOCSO deduction amount and enter it manually.
Yes — your SOCSO relief is based on your TOTAL annual SOCSO+EIS contributions from ALL employers in 2025. If Employer A paid RM 200 in SOCSO on your behalf (Jan–Jun) and Employer B paid RM 200 (Jul–Dec), your total is RM 400 — but you claim RM 350 (the cap). You should receive a separate Form EA from each employer. Cross-reference both to verify the SOCSO amounts. In e-Filing with multiple employers, each employment income is declared separately in Part C, but SOCSO relief is one combined figure in Part F — enter the total from all employers, capped at RM 350.
Related Tax Relief Guides
Missed any reliefs this year? Use the Tax Planner to check.
The Malaysia Tax Planner 2026 walks you through every relief category — EPF, SOCSO, lifestyle, insurance, SSPN, medical, child, and 16 more — so you don't leave money on the table.
Get the Tax Planner — RM 42