Calculating statutory payroll contributions can sometimes be confusing, especially when businesses have employees with different salary levels, ages, or employment categories.
To make the process easier, PERKESO has introduced a Contribution Calculator that allows employers and employees to calculate contribution amounts under Act 4 and Act 800.
For businesses managing monthly payroll, this tool can be a useful way to perform a quick check and ensure that the correct contribution rates are being applied.
What Is the PERKESO Contribution Calculator?
The PERKESO Contribution Calculator is an online tool provided by PERKESO to help employers and employees calculate the applicable contribution amounts.
The calculator covers contributions under:
- Employees’ Social Security Act 1969 (Act 4)
- Employment Insurance System Act 2017 (Act 800)
Users can enter the employee’s monthly salary and select the relevant age or contribution category to calculate the applicable amount.
Why Is This Useful for Employers?
Payroll involves more than simply calculating an employee’s basic salary.
Employers need to ensure that statutory contributions are correctly calculated and paid for eligible employees.
An incorrect contribution may result from:
- Using an outdated contribution table
- Entering the wrong salary amount
- Applying the wrong employee category
- Incorrectly calculating employer or employee portions
- Changes in employee age or employment status
Using the PERKESO calculator provides an additional way to cross-check payroll calculations.
What Information Do You Need?
The calculator requires basic information such as the employee’s monthly salary.
Depending on the employee’s circumstances, employers may also need to consider the applicable age and contribution category.
This is particularly important because PERKESO contribution treatment can differ depending on the employee’s circumstances.
Don’t Forget the RM6,000 Wage Ceiling
Employers should also be aware that the PERKESO contribution wage ceiling was increased from RM5,000 to RM6,000 per month, effective 1 October 2024.
For employees earning more than RM6,000, contributions are calculated based on the RM6,000 wage ceiling.
This is an important point for payroll teams to remember when reviewing higher-salaried employees.
A Useful Payroll Cross-Check
The calculator can be particularly useful as part of a monthly payroll review.
Businesses can consider the following process:
Step 1: Determine the employee’s applicable monthly wages.
Step 2: Check the employee’s age and contribution category.
Step 3: Calculate the PERKESO and EIS contributions.
Step 4: Compare the calculated amount against the payroll system.
Step 5: Investigate and correct any differences before making payment.
This simple review can help identify payroll errors before they become recurring issues.
Remember: The Calculator Is a Checking Tool
While the calculator is useful, employers should still understand the applicable contribution rules.
PERKESO states that employers are required to pay monthly contributions for eligible employees according to the applicable contribution schedule.
Employers should therefore not rely solely on an accounting system without periodically reviewing whether the correct statutory rates and employee categories are being applied.
Other Payroll Records to Review
While checking PERKESO contributions, businesses can also take the opportunity to review:
✔ Employee salary records
✔ Overtime and allowance records
✔ EPF contributions
✔ EIS contributions
✔ Payroll deductions
✔ Monthly statutory payment records
✔ Employee registration detailsKeeping these records accurate makes monthly payroll processing easier and supports better compliance.
Final Thoughts
The PERKESO Contribution Calculator provides employers with a convenient way to check contribution amounts under Act 4 and Act 800.
For businesses, incorporating a quick contribution check into the monthly payroll process can help identify errors, improve payroll accuracy, and strengthen statutory compliance.
A few minutes of checking each month can help prevent repeated payroll discrepancies in the future.
