Employer Cost Calculator Malaysia
An employee on RM3,000 costs the employer RM 3,477.55 a month: 13% employer EPF (RM390), RM51.65 SOCSO, RM5.90 EIS and the 1% HRD Corp levy (RM30), which is RM 477.55 or 15.9% on top of pay, and RM 41,730.60 a year. Enter your employee's pay below.
Cost to the employer
Cost a month
RM 477.55 (15.9%) on top of pay · RM 41,730.60 a year
| Wages and fixed allowances | RM 3,000.00 |
|---|---|
| Employer EPF (13%) | RM 390.00 |
| Employer SOCSO | RM 51.65 |
| Employer EIS | RM 5.90 |
| HRD Corp levy (1%) | RM 30.00 |
| Cost a month | RM 3,477.55 |
| Cost a year | RM 41,730.60 |
| Employee EPF | − RM 330.00 |
|---|---|
| Employee SOCSO | − RM 14.75 |
| Employee EIS | − RM 5.90 |
| Pay before PCB | RM 2,649.35 |
Excludes PCB, the yearly foreign worker levy, overtime and other benefits.
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Employer cost by salary (Malaysian employee under 60)
| Salary | Employer EPF | SOCSO + EIS | Monthly without HRD | Monthly with 1% HRD | Yearly with HRD |
|---|---|---|---|---|---|
| RM 1,700.00 | RM 221.00 | RM 32.15 | RM 1,953.15 | RM 1,970.15 | RM 23,641.80 |
| RM 2,500.00 | RM 325.00 | RM 47.75 | RM 2,872.75 | RM 2,897.75 | RM 34,773.00 |
| RM 3,000.00 | RM 390.00 | RM 57.55 | RM 3,447.55 | RM 3,477.55 | RM 41,730.60 |
| RM 4,000.00 | RM 520.00 | RM 77.05 | RM 4,597.05 | RM 4,637.05 | RM 55,644.60 |
| RM 5,000.00 | RM 650.00 | RM 96.55 | RM 5,746.55 | RM 5,796.55 | RM 69,558.60 |
| RM 6,000.00 | RM 720.00 | RM 116.05 | RM 6,836.05 | RM 6,896.05 | RM 82,752.60 |
| RM 8,000.00 | RM 960.00 | RM 116.05 | RM 9,076.05 | RM 9,156.05 | RM 109,872.60 |
| RM 10,000.00 | RM 1,200.00 | RM 116.05 | RM 11,316.05 | RM 11,416.05 | RM 136,992.60 |
How employer cost is worked out
- Wages = basic salary + fixed allowances (wages for EPF and SOCSO).
- Employer EPF = 13% (wages up to RM5,000) or 12%, on the Third Schedule wage band, rounded up.
- SOCSO and EIS by the banded contribution schedules in RM100 steps up to the RM6,000 ceiling.
- HRD Corp levy = 1% or 0.5% of Malaysian employees' wages.
- Yearly = monthly × 12 + bonus + EPF on the bonus.
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Employer contribution rates 2026
| Contribution | Malaysian employee | Foreign worker |
|---|---|---|
| Employer EPF | 13% (up to RM5,000), 12% (above); 4% from age 60 | 2% (from October 2025) |
| Employer SOCSO | 1.75% (1.25% from age 60), RM6,000 ceiling | 1.75% |
| Employer EIS | 0.2%, RM6,000 ceiling | None |
| HRD Corp levy | 1% (10 or more employees) or 0.5% (5 to 9, voluntary) | Not counted |
Sources
- KWSP (EPF): contribution rates
- PERKESO (SOCSO): contribution schedules
- HRD Corp: levy
- BoardRoom Malaysia: EPF, SOCSO, EIS and HRD contributions
Disclaimer: An estimate for planning. Check KWSP, PERKESO and HRD Corp for exact amounts and your sector's coverage.
Frequently asked questions
How much does an employee on RM3,000 cost the employer?
About RM 3,477.55 a month with the 1% HRD Corp levy: RM3,000 salary, RM390 employer EPF (13%), RM51.65 SOCSO, RM5.90 EIS and a RM30 HRD levy. That is RM 477.55 (15.9%) on top of pay, or RM 41,730.60 a year.
What is the employer EPF contribution?
13% for employees earning RM5,000 or less and 12% above RM5,000, worked out on the Third Schedule wage band and rounded up to the next ringgit. For employees aged 60 and above, 4%. For foreign workers, 2% from October 2025.
Who must pay the HRD Corp levy?
Employers in covered sectors with 10 or more Malaysian employees must pay 1% of monthly wages. Employers with 5 to 9 employees can register voluntarily at 0.5%. The levy is worked out on Malaysian employees' wages only.
What does a foreign worker cost the employer?
For a foreign worker on RM3,000: 2% employer EPF (RM60) and RM51.65 SOCSO, with no EIS or HRD levy, RM 3,111.65 a month. The yearly foreign worker levy and immigration permit costs are paid separately.
Does a bonus attract EPF?
Yes, a bonus counts as wages for EPF. A one-month bonus on RM3,000 takes that month's wages to RM6,000, so employer EPF is 12% and the extra EPF on the bonus is RM 330.00. The yearly cost with that bonus is RM 45,060.60.
How much are employer SOCSO and EIS?
Employer SOCSO is about 1.75% (Employment Injury and Invalidity) and EIS 0.2%, by banded contribution schedules up to the RM6,000 wage ceiling. On RM3,000, SOCSO is RM51.65 and EIS RM5.90.
What other costs come with hiring?
Beyond statutory contributions: allowances, overtime, paid leave, medical insurance, training, equipment and recruitment. This calculator covers wages, statutory contributions, the HRD levy and bonus.
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