Statutory payroll (Malaysia)

Last updated: July 9, 2026

Doing this in Cloudby?
This is the rules reference. For how it works in the software, see Statutory Contributions in the reference, or the how-to Run payroll.

Every Malaysian employer withholds and remits a set of statutory payroll deductions each month, to three agencies: KWSP (EPF), PERKESO (SOCSO, EIS and SKBBK), and LHDN (monthly tax, PCB). This section is the plain-language reference to who contributes, how much, and by when.

In this section

The five obligations at a glance

DeductionAgencyWho pays
EPFKWSPEmployer + employee
SOCSOPERKESOEmployer + employee
EISPERKESOEmployer + employee
SKBBK (Lindung 24 Jam)PERKESOEmployee (voluntary for locals)
PCB (MTD)LHDNEmployee (withheld by employer)

The monthly rhythm

Each pay run computes these deductions, and the employer remits them to the agencies by the 15th of the following month. EPF, PERKESO and LHDN each take their own return or upload file. Cloudby produces those files from your payroll run: see the Statutory Forms reference.

The annual layer

On top of the monthly cycle, employers file a year-end set with LHDN: Form E and each employee’s EA statement. Cloudby generates these from the year’s runs: see Statutory filings. The Deadlines page collects every date.

Always confirm the current figures. Rates, wage ceilings and dates change from time to time. This page reflects the position as of mid-2026; verify the current schedule with the relevant agency (KWSP, PERKESO, LHDN) before you rely on a number.

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