A Malaysian payslip carries one figure with unusual consequences: your monthly wage, and whether it sits above or below RM4,000.
Why RM4,000 matters
The Employment Act applies to all employees, but the sections on overtime payments and termination benefits do not apply above RM4,000 per month.
Below that threshold you have statutory overtime entitlement and statutory termination benefits. Above it, both come from your contract instead.
What should appear
- Basic wage
- Allowances, itemised
- Overtime, at a minimum of 1.5× the hourly rate where applicable
- EPF employee contribution — 11%
- SOCSO employee contribution
- EIS employee contribution
- PCB — monthly tax deduction
The employer side
Not shown on your payslip but part of your cost: EPF at 13% (or 12% above RM5,000), SOCSO at 1.75% and EIS at 0.20%.
The ceilings
SOCSO and EIS contributions are capped against a wage ceiling of RM6,000, raised from RM4,000 in October 2024.
Foreign workers
From October 2025, foreign workers contribute to EPF at 2%, matched by the employer.
Overtime
Work beyond 8 hours a day or 45 hours a week is overtime, paid at a minimum of 1.5 times the hourly rate — for covered employees.
If you are below RM4,000 and working extra hours without overtime pay, that is a statutory breach.
What to check monthly
- That your basic wage matches your contract
- That EPF, SOCSO and EIS all appear
- That overtime is paid where you worked it
- That no unauthorised deduction is present
Verify separately
Check your EPF record with KWSP and your SOCSO record with PERKESO. A deduction is not proof of remittance.
Gaps affect your retirement savings and your EIS eligibility.
If something is wrong
Raise it with your employer, then the Department of Labour. Non-compliance can attract fines up to RM50,000 per offence.