
Updated on 16 March 2026 in Business | Suki Bajaj
As an HR professional in Malaysia, understanding SOCSO for foreign workers in Malaysia goes far beyond mere statutory requirements – it's about ensuring the well-being of your diverse workforce and safeguarding your company from potential liabilities.
Get ready as we break down everything you need to know, from employee rights to your essential obligations and the latest key updates, so you can foster a truly supportive and legally sound workplace.
Under the Employees' Social Security Act 1969 (Act 4), a foreign worker eligible for SOCSO for foreign workers is defined as a non-Malaysian citizen holding a valid travel document and a work pass or permit issued by the Director General of Immigration for the purpose of working in Malaysia.
This includes various passes like the Visitor’s Pass (Temporary Employment) and other work permits.
Foreign workers in Malaysia, including expatriates and foreign domestic workers, are protected under two vital schemes offered by SOCSO for foreign workers:
This scheme provides protection for foreign workers against accidents or occupational diseases directly arising from and in the course of their employment. This includes:
This is a significant addition under SOCSO for foreign workers, protecting those who suffer from invalidity due to a permanent and incurable condition, making them unable to earn at least one-third of a normal worker's customary earnings.
This scheme covers invalidity or death of the foreign worker regardless of the cause, providing comprehensive 24-hour coverage. This means that SOCSO invalidity scheme for foreign workers offers a key safety net.
To be eligible for SOCSO coverage, foreign workers must:
As an employer, it is your legal obligation to register all eligible foreign workers with SOCSO and ensure that mandatory contributions are paid in full based on the specified SOCSO for foreign worker rate.
Failure to comply is a serious offense under Act 4, punishable by a maximum fine of RM10,000.00 or up to two years imprisonment, or both.
Kindly refer to the official 2026 Foreign Worker SOCSO Contribution Rate Table.
Always double-check that all documents are valid and updated to prevent any processing delays.
Once registered, each foreign worker will be assigned a SOCSO number for foreign workers, which is essential for all future contributions and claims.
The SOCSO contribution for foreign workers is determined by their entry into the PERKESO scheme relative to their age and the specific schemes they are covered under.
This applies to foreign workers who first enter or contribute for the first time under the PERKESO Invalidity Scheme while under 55 years old.
This is for foreign workers who were 55 years old or older when they first entered the PERKESO’s Invalidity Scheme, or those who have reached 60 years old and are still working.
For precise calculations, you can use the official Foreign Worker SOCSO Calculator.
Foreign workers face the same inherent risks as Malaysian employees, from workplace accidents to long-term illnesses.
SOCSO ensures they have financial protection, which includes a range of benefits under both schemes:
Without SOCSO, foreign workers might not receive the necessary medical care, and your company could be held legally responsible for their expenses.
Yes, absolutely. Employers must clearly itemize both the employer's and the foreign worker's share of SOCSO for foreign workers contributions on the foreign worker’s payslip.
This payslip must then be provided to the foreign worker. This ensures transparency and compliance with statutory requirements.
Monthly contributions must be paid to PERKESO no later than the 15th day of the succeeding month.
For example, contributions pertaining to March 2026, the payment must be made by 15 April 2026.
This is a key area with recent changes. Historically, EPF contributions for foreign workers were generally optional, with some choosing to contribute voluntarily.
However, significant changes have been introduced. The Employees Provident Fund (Amendment) Bill 2025, passed in March 2025, mandates EPF contributions for non-citizen workers.
Effective Q4 2025, both foreign workers and their employers will be required to contribute 2% of the worker's salary to EPF.
Foreign workers will generally be able to withdraw their EPF savings upon returning to their home countries with proof of employment termination.
Stay informed about the exact implementation date and further guidelines from EPF.
Generally, foreign workers holding a Visit Pass (Temporary Employment) [VP(TE)] are allowed to work in Malaysia for a maximum period of 10 years. The VP(TE) is typically valid for 12 months and can be extended.
QuickHR automatically calculates SOCSO for foreign workers contributions based on the latest foreign worker contribution rates, ensuring your payroll stays accurate.
We keep pace with regulatory changes from MOHR, KWSP, LHDN, and SOCSO, so your calculations are always compliant.
SOCSO for foreign workers deductions are seamlessly integrated with attendance, eleave, eclaims, and more, providing a unified HR experience.
From digital payslips to integration with QuickBooks and Xero, QuickHR streamlines your entire payroll process.
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