Every month, you see two deductions on your payslip: EPF and SOCSO. Most Malaysian employees know EPF is their retirement savings, but SOCSO remains confusing. Worse, many workers don’t realise they’re entitled to claim benefits they’ve been paying for all along.

Your EPF contributions build retirement savings you can access at 55. Your SOCSO contributions buy insurance coverage you might need tomorrow. The difference matters because you could be entitled to claim thousands of ringgit in benefits you’ve already paid for.

The Basic Difference: Savings vs Insurance

EPF operates as a retirement savings account that you’re required to contribute to. Every ringgit you and your employer contribute goes into your personal account, earning dividends each year. That money belongs to you, and you can withdraw it under specific conditions.

SOCSO works like insurance. Your contributions and your employer’s contributions go into a pool that pays out benefits when workers face specific circumstances like accidents, disabilities, or death. You can’t withdraw these contributions the way you can with EPF, but when you need to claim for accidents, disability, or death, the benefits often exceed what you’ve paid in.

What EPF Covers

Your EPF contributions go into three accounts with different purposes. 

Account 1 (Akaun Persaraan) holds 75% of your monthly contributions and is meant for retirement. You can only access this money at age 55, though you can make partial withdrawals at 50.

Account 2 (Akaun Sejahtera) gets 25% of your contributions and offers more flexibility. You can withdraw from Account 2 for housing purchases, education, medical treatment, and Hajj pilgrimage before reaching retirement age.

Account 3 (Akaun Fleksibel) was introduced in 2024 and receives 10% of your total contributions, allowing limited withdrawals for emergencies whilst protecting your core retirement savings.

The current contribution rate sits at 11% from employees earning above RM5,000 monthly, with employers adding another 12% or 13% depending on your salary bracket. For someone earning RM4,000 monthly, that’s RM440 from your salary plus RM520 from your employer going into your EPF account every month.

What SOCSO Covers (That Most People Miss)

SOCSO provides two types of protection that activate in very different situations. Understanding which scheme covers what determines whether you can claim benefits.

Employment Injury Scheme protects you if you’re injured at work or travelling to and from work. This includes accidents on your morning commute, injuries during lunch breaks, and work-related illnesses like carpal tunnel syndrome from repetitive computer work or hearing loss from factory noise exposure. You’re covered whether you’re 25 or 65, employed or retired, as long as the injury happened whilst you were contributing to SOCSO.

The Invalidity Scheme covers you if you become disabled due to any reason, not just work accidents. This could be a car accident during the weekend, a stroke, cancer diagnosis, or any serious illness that permanently stops you from working. This protection continues only whilst you’re actively employed and contributing. Once you stop working or reach 60, this coverage ends.

Most people don’t realise how comprehensive SOCSO coverage actually is. The schemes cover medical expenses, temporary disability payments, permanent disability benefits, rehabilitation costs, funeral benefits, and dependents’ benefits. 

For employees under 60, your employer contributes 1.75% of your monthly wage while you contribute 0.5%. The employer’s contribution fully covers the Employment Injury Scheme (1.25%). Both you and your employer split the cost of the Invalidity Scheme (0.5% each). Someone earning RM3,000 monthly pays about RM15, and their employer pays RM52.50.

The Mental Health Question Everyone Asks

Can you claim SOCSO benefits for mental health conditions?  Yes, though the approval process has strict requirements.

Mental health conditions can qualify for SOCSO’s Invalidity Scheme if they prevent you from earning at least one-third of your previous income. SOCSO approves approximately 400 to 500 mental illness claims annually, covering disorders such as schizophrenia, major depression, bipolar disorder, and severe anxiety. However, you must demonstrate that you’ve undergone extensive treatment first, which may include electroconvulsive therapy or multiple antipsychotic medications.

The key requirement is proving permanent invalidity as defined under the Employees’ Social Security Act. This means you’ve lost earning capacity in all forms of employment, not just your current job. You’ll need comprehensive medical documentation from psychiatrists, proof of extensive treatment attempts, and certification that your condition is permanent or long-term rather than temporary.

SOCSO’s Medical Board assesses each case individually, reviewing your complete medical history and treatment records. The assessment focuses on whether your condition is permanent rather than temporary, and whether it affects all types of work, not just your current job. If you’re struggling with mental health issues and considering a claim, helplines like Talian HEAL (15555) can provide support while you gather documentation and navigate the process.

Why Your SOCSO Deduction Differs From Your Colleague’s

Your SOCSO contribution depends on your monthly salary bracket, not a percentage of your exact salary. SOCSO uses 39 contribution categories ranging from below RM30 monthly to above RM5,000 monthly. Each bracket has a fixed contribution amount, so everyone earning within that range pays the same. This means two colleagues earning RM3,450 and RM3,750 both fall in the same bracket and pay identical SOCSO contributions, even though their actual salaries differ by RM300.

Your employer’s contribution also varies by your salary bracket but follows a different rate table. For that RM3,500 salary, whilst you pay RM24.50, your employer pays RM62.05. These rates stay fixed as long as you remain in the same salary bracket.

The Benefits Many Workers Don’t Know About

You’ve been paying into SOCSO every month, but chances are you don’t know half of what you’re entitled to claim. SOCSO remains less familiar to Malaysian workers compared to EPF, with many employees unaware of the full range of benefits available to them. These five benefits sit unused because workers simply don’t realise they exist.

• Temporary Disablement Benefit pays you 80% of your assumed daily wage if you can’t work due to an accident or illness. This continues for up to two years or until you recover. Many workers don’t realise they can claim this for extended medical leave beyond what their company sick leave covers.
• Constant Attendance Allowance provides an additional RM500 monthly if your disability requires someone to constantly care for you. Workers often miss this because they don’t know it exists separately from the main disability benefit.
• Physical or Vocational Rehabilitation covers retraining costs if your injury prevents you from returning to your previous job. SOCSO will pay for courses, training, and even equipment needed to start a new career. This benefit can be worth tens of thousands of ringgit.
• Funeral Benefit pays RM3,000 to your dependents immediately upon your death, separate from any other benefits. Many families don’t claim this because they’re not aware it exists or don’t know how to apply during a difficult time.
• Dependents’ Benefits provides monthly payments to your spouse and children if you die or become permanently disabled. Your spouse receives 40% of your assumed monthly wage, and each child receives 20%, up to a maximum of 90% total. This can continue for years.

To claim any of these benefits, start by notifying your employer immediately after an injury or diagnosis. Your employer should file the necessary forms with SOCSO, though you can also submit claims directly through the SOCSO ASSIST Portal or visit the nearest SOCSO office. For workplace injuries, employers must report within 48 hours using Form 21. Keep all medical documentation, receipts, and employment records organised as you’ll need these to support your claim.

What Happens When You Lose Your Job

The rules differ depending on how your employment ended and which benefit you’re claiming.

EPF savings remain yours when employment ends, whether you resigned, were retrenched, or terminated. Nothing changes except new contributions stop until you find new work. The accumulated balance continues earning dividends. You can apply for unemployment withdrawals from Account 1 under specific conditions, though eligibility depends on your circumstances. Check the EPF website or EIS scheme for details on what qualifies.

For SOCSO, what happens depends on which scheme you’re looking at. Your Employment Injury Scheme coverage protects you for work-related accidents that occurred whilst you were employed and contributing. Even after leaving a job, you can still claim benefits for injuries that happened during your employment period.

Your Invalidity Scheme coverage, however, stops the moment you stop working. This is crucial to understand. If you become disabled while unemployed, you cannot claim Invalidity Scheme benefits. You must be actively employed and contributing to SOCSO when the disability occurs to qualify for these benefits.

If you were retrenched or lost your job through no fault of your own, you may also qualify for benefits under the Employment Insurance System (EIS), which provides temporary financial support whilst you search for new work. Voluntary resignation or termination for misconduct typically doesn’t qualify for EIS benefits.

Making Your Deductions Work For You

Knowing what EPF and SOCSO cover is one thing. Actually using these benefits when you need them is another. Most claims get delayed or rejected because workers don’t keep proper records or don’t know how to access their accounts. Here’s how to stay prepared.

Start by checking your payslip every month to verify your EPF and SOCSO contributions match your salary bracket. Errors happen more often than you’d think, and underpayment means lower benefits when you actually need them.

Register for EPF i-Akaun and SOCSO ASSIST Portal if you haven’t already. These platforms let you check your contribution history, apply for benefits, and track claims without visiting offices. It takes five minutes to set up and saves hours when you need to make a claim.

Download the SOCSO mobile app and review what benefits you qualify for now, before you need them. Understanding your coverage during an emergency is too late. Knowing what you can claim beforehand makes the process much faster when something actually happens.

Report workplace injuries or work-related illnesses immediately. SOCSO claims require prompt notification, and waiting months to report an injury can complicate or invalidate your claim entirely. Get it on record as soon as possible.

Keep your medical documentation organised, whether it’s for EPF medical withdrawals or SOCSO disability claims. Proper documentation speeds up approval and ensures you receive the full benefits you’re entitled to. A simple folder with all your medical reports can save you weeks of scrambling later.

Claim What’s Yours

Most people ignore their EPF and SOCSO deductions until they desperately need them, then scramble to figure out what they’re entitled to and how to claim it. 

Knowing what you have and how to access it makes all the difference when something goes wrong.Want more practical money tips? Join our WhatsApp Channel for regular updates.

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• EPF
• How-To