EPF, SOCSO, EIS & PCB: A Simple Guide to Malaysian Payslips (2026)

Running payroll for the first time can feel intimidating. EPF, SOCSO, EIS, PCB — four acronyms, four different rules, and real consequences if you get them wrong. But each one is simpler than it looks. Here is what every Malaysian payslip needs in 2026, in plain language.

EPF / KWSP — retirement savings

The Employees Provident Fund is the big one. For 2026, the standard employee contribution is 11% of monthly wages. The employer contributes 13% for employees earning up to RM5,000 a month, and 12% for those earning above that. Both portions appear on the payslip — the employee deduction reduces take-home pay, while the employer portion is a cost to the business on top of salary.

SOCSO / PERKESO — workplace protection

SOCSO provides coverage for workplace injuries and invalidity. Contributions follow the official First Schedule, based on salary bands rather than a flat percentage, so the exact ringgit amount depends on the wage. Both employee and employer contribute.

EIS / SIP — employment insurance

The Employment Insurance System helps workers who lose their jobs. It is the smallest deduction: 0.2% of monthly wages from the employee and 0.2% from the employer. Small, but it still has to be on the slip.

PCB / MTD — monthly income tax

Potongan Cukai Berjadual (Monthly Tax Deduction) is income tax collected in advance. It is calculated from the employee’s estimated annual taxable income using the LHDN schedule, then deducted monthly. For employees with complex tax situations, it is worth confirming with a payroll accountant — but for most salaries the standard calculation is accurate.

Let the app do the maths

This is exactly the kind of repetitive, error-prone calculation software should handle. In Faktur.my you enter the basic salary, add any allowances, and every statutory deduction is computed on the 2026 rates automatically. You can prorate by days worked for partial months, and the result is a clean payslip PDF with your company header and the employee’s bank details for transfer.

Store each employee’s rates and recurring allowances once, and they flow into every future payslip. Run payroll for one person or a small team — the calculation is the same either way.

The takeaway

You do not need to memorise contribution tables to pay your staff correctly. Understand what each deduction is for, then let Faktur.my handle the numbers. Your employees get a professional, accurate payslip, and you get your evenings back.