{"id":10230,"date":"2026-10-23T12:00:48","date_gmt":"2026-10-23T04:00:48","guid":{"rendered":"https:\/\/eternity-recruitment.com\/?p=10230"},"modified":"2026-10-07T15:48:08","modified_gmt":"2026-10-07T07:48:08","slug":"epf-socso-eis-employer-guide","status":"publish","type":"post","link":"https:\/\/eternity-recruitment.com\/cn\/epf-socso-eis-employer-guide\/","title":{"rendered":"EPF, SOCSO &#038; EIS: What Employers Must Do When Hiring a New Employee"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"10230\" class=\"elementor elementor-10230\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-303bcfa e-flex e-con-boxed e-con e-parent\" data-id=\"303bcfa\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ffea0fd elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"ffea0fd\" 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1fr;\r\n    }\r\n\r\n    .er-epf-cta-info {\r\n      padding: 20px 22px;\r\n    }\r\n  }\r\n<\/style>\r\n\r\n<article class=\"er-epf-blog\">\r\n\r\n  <div class=\"er-epf-badge\">HR Compliance<\/div>\r\n\r\n  <h1 class=\"er-epf-title\">EPF, SOCSO &amp; EIS: What Employers Must Do When Hiring a New Employee<\/h1>\r\n\r\n  <p class=\"er-epf-intro\">\r\n    You have found the right person, the offer is accepted and the start date is set. Before Day 1 arrives, there is one more task that every Malaysian employer needs to get right: statutory contributions.\r\n  <\/p>\r\n\r\n  <p class=\"er-epf-intro\">\r\n    When hiring a <strong>New Employee<\/strong> in Malaysia, employers must do more than issue an offer letter and prepare a workstation. They need to ensure proper statutory onboarding, including <strong>EPF<\/strong>, <strong>SOCSO<\/strong> and <strong>EIS<\/strong> registration or contribution where applicable.\r\n  <\/p>\r\n\r\n  <p class=\"er-epf-intro\">\r\n    Employers should collect accurate employee details, set up payroll correctly, calculate contributions based on the latest official schedules and keep proper records from the employee's first month of work.\r\n  <\/p>\r\n\r\n  <p class=\"er-epf-intro\">\r\n    For many businesses, especially SMEs hiring their first few employees, these requirements can feel administrative. But they are not small details. EPF, SOCSO and EIS form part of employee protection and employer compliance in Malaysia.\r\n  <\/p>\r\n\r\n  <p class=\"er-epf-intro\">\r\n    If handled poorly, the company may face payment errors, late contributions, employee complaints, awkward conversations with a new hire or compliance issues later.\r\n  <\/p>\r\n\r\n  <p class=\"er-epf-intro\">\r\n    This guide explains what employers should prepare when hiring a new employee, what EPF, SOCSO and EIS generally cover, what rates and deadlines employers should check, and why proper hiring planning should happen before payroll starts.\r\n  <\/p>\r\n\r\n  <p class=\"er-epf-intro\">\r\n    A professional <strong>Recruitment Agency<\/strong> like <strong>Eternity Recruitment<\/strong> can help employers hire better from the beginning, so onboarding and compliance become smoother after the candidate accepts the offer.\r\n  <\/p>\r\n\r\n  <div class=\"er-epf-note\">\r\n    Rates and rules in this article are for general information and should be checked against the latest official guidance from KWSP and PERKESO before payroll is processed. This article is not legal, payroll, tax or accounting advice.\r\n  <\/div>\r\n\r\n  <div class=\"er-epf-note\">\r\n    Suggested internal link: Learn more about recruitment support at\r\n    <a href=\"\/cn\/recruitmentservices\/\">Eternity Recruitment Services<\/a>\r\n  <\/div>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>The Three Contributions at a Glance<\/h2>\r\n\r\n    <p>\r\n      EPF, SOCSO and EIS are often discussed together during payroll setup, but each one serves a different purpose.\r\n    <\/p>\r\n\r\n    <ul>\r\n      <li><strong>EPF or KWSP:<\/strong> The Employees Provident Fund, which builds retirement savings for employees.<\/li>\r\n      <li><strong>SOCSO or PERKESO:<\/strong> The Social Security Organisation, which provides protection for employment related injury, invalidity and other eligible coverage.<\/li>\r\n      <li><strong>EIS:<\/strong> The Employment Insurance System, which provides temporary income support and job search assistance for eligible employees who lose employment.<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      EPF is managed by KWSP. SOCSO and EIS are both managed by PERKESO. For employers, these items affect payroll cost, salary calculation, employee records and monthly submission deadlines.\r\n    <\/p>\r\n\r\n    <p>\r\n      A salary offer that looks simple on paper can become confusing if the employer does not consider statutory contributions early.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Why EPF, SOCSO and EIS Matter When Hiring<\/h2>\r\n\r\n    <p>\r\n      Hiring is not complete when the candidate signs the offer letter. Once the employment relationship begins, the employer has administrative and statutory responsibilities. EPF, SOCSO and EIS are part of this structure.\r\n    <\/p>\r\n\r\n    <p>\r\n      These contributions are not only payroll deductions. They help protect employees and also show that the company is managing employment properly.\r\n    <\/p>\r\n\r\n    <p>\r\n      For employers, statutory contributions should be considered before the offer is made. They affect the real cost of hiring, payroll planning, employee communication and compliance risk.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/www.kwsp.gov.my\/en\/employer\/responsibilities\" target=\"_blank\" rel=\"noopener\">\r\n        KWSP Employer Responsibilities\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/perkeso.gov.my\/en\/our-services\/employer-employee\/employer-registration.html\" target=\"_blank\" rel=\"noopener\">\r\n        PERKESO Employer Registration\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>EPF: What Employers Need to Know<\/h2>\r\n\r\n    <p>\r\n      <strong>EPF<\/strong>, also known as KWSP, is Malaysia's retirement savings system. Employers are required to register with EPF and make monthly contributions for employees where applicable.\r\n    <\/p>\r\n\r\n    <p>\r\n      For Malaysian employees below 60, the standard employee contribution is commonly 11 percent. The employer contribution is commonly 13 percent if the employee's monthly wage is RM5,000 or below, and 12 percent if the monthly wage is above RM5,000.\r\n    <\/p>\r\n\r\n    <p>\r\n      Employees aged 60 and above may have different contribution rates. Employers should always check the employee category before setting up payroll.\r\n    <\/p>\r\n\r\n    <p>\r\n      For foreign workers, EPF has become mandatory for non Malaysian citizen employees with valid work passes, excluding domestic workers, effective from the October 2025 salary cycle. The statutory rate is 2 percent from the employer and 2 percent from the employee.\r\n    <\/p>\r\n\r\n    <p>\r\n      Unlike SOCSO and EIS, EPF does not follow the same RM6,000 wage ceiling for contribution calculation. Employers should refer to the latest KWSP contribution schedule and official guidance before processing payroll.\r\n    <\/p>\r\n\r\n    <p>\r\n      Key EPF points employers should remember:\r\n    <\/p>\r\n\r\n    <ul>\r\n      <li>Register as an EPF employer when the company becomes liable to contribute.<\/li>\r\n      <li>Register or update the employee's EPF details where required.<\/li>\r\n      <li>Check whether the employee has an existing EPF number.<\/li>\r\n      <li>Use the latest official EPF contribution schedule.<\/li>\r\n      <li>Pay contributions by the required monthly deadline.<\/li>\r\n      <li>Keep proper contribution records.<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/www.kwsp.gov.my\/en\/employer\/responsibilities\" target=\"_blank\" rel=\"noopener\">\r\n        KWSP Employer Responsibilities\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/www.kwsp.gov.my\/en\/employer\/responsibilities\/non-malaysian-citizen-employees\" target=\"_blank\" rel=\"noopener\">\r\n        KWSP EPF Contribution for Foreign Workers\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>SOCSO: What Employers Need to Know<\/h2>\r\n\r\n    <p>\r\n      <strong>SOCSO<\/strong>, administered by PERKESO, provides social security protection for eligible employees. It covers certain employment related risks according to the applicable Malaysian laws and contribution categories.\r\n    <\/p>\r\n\r\n    <p>\r\n      Employers with one or more employees are generally required to register and contribute where applicable. PERKESO states that principal and immediate employers who employ one or more employees are responsible to register and contribute to SOCSO based on the relevant contribution rates.\r\n    <\/p>\r\n\r\n    <p>\r\n      From 1 October 2024, PERKESO increased the wage ceiling for contributions from RM5,000 to RM6,000 per month. For employees earning above this ceiling, contributions are calculated according to the ceiling and the applicable contribution schedule.\r\n    <\/p>\r\n\r\n    <p>\r\n      Typical contribution rates for eligible employees below 60 are commonly based on employer and employee shares, with exact amounts determined by PERKESO's official wage band table or calculator.\r\n    <\/p>\r\n\r\n    <p>\r\n      For foreign workers, employers should also review PERKESO requirements carefully. Foreign employees may be covered under the relevant employment injury protection scheme, depending on status and applicable rules.\r\n    <\/p>\r\n\r\n    <p>\r\n      Work related accidents involving employees should be reported to PERKESO according to the required process and timeline. Employers should not wait until payroll month end to understand reporting obligations.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/perkeso.gov.my\/en\/our-services\/employer-employee\/employer-registration.html\" target=\"_blank\" rel=\"noopener\">\r\n        PERKESO Employer and Employee Registration\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/perkeso.gov.my\/en\/our-services\/employer-employee\/kadar-caruman.html\" target=\"_blank\" rel=\"noopener\">\r\n        PERKESO Contribution Rate\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>EIS: What Employers Need to Know<\/h2>\r\n\r\n    <p>\r\n      <strong>EIS<\/strong> stands for Employment Insurance System. It is administered by PERKESO and supports eligible employees who lose employment, subject to the rules and qualifying conditions.\r\n    <\/p>\r\n\r\n    <p>\r\n      EIS is often managed together with SOCSO contribution processes, but employers should still understand that it is a separate protection system with its own purpose.\r\n    <\/p>\r\n\r\n    <p>\r\n      EIS contributions are set at 0.4 percent of the employee's assumed monthly salary, commonly split between the employer and employee at 0.2 percent each. The wage ceiling follows the PERKESO contribution ceiling of RM6,000 per month.\r\n    <\/p>\r\n\r\n    <p>\r\n      For employers, this means EIS should be included when setting up payroll for eligible employees. The company should not treat EIS as optional if the employee falls within the applicable coverage.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/perkeso.gov.my\/en\/our-services\/employer-employee\/contributions.html\" target=\"_blank\" rel=\"noopener\">\r\n        PERKESO Contributions\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>A Simple Example<\/h2>\r\n\r\n    <p>\r\n      Let us say you hire a Malaysian employee aged below 60 with a monthly salary of RM4,000.\r\n    <\/p>\r\n\r\n    <ul>\r\n      <li><strong>EPF employer share at 13 percent:<\/strong> RM520<\/li>\r\n      <li><strong>EPF employee share at 11 percent:<\/strong> RM440<\/li>\r\n      <li><strong>EIS employer share at 0.2 percent:<\/strong> RM8<\/li>\r\n      <li><strong>EIS employee share at 0.2 percent:<\/strong> RM8<\/li>\r\n      <li><strong>SOCSO:<\/strong> Based on the official PERKESO contribution table for the relevant wage band.<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      This shows why salary is only part of the real cost of hiring. For many employees, employer statutory contributions can add a meaningful cost on top of basic salary before considering benefits, equipment, onboarding, training or other employment related costs.\r\n    <\/p>\r\n\r\n    <p>\r\n      Employers should always calculate total employment cost before confirming an offer, especially when planning headcount for multiple roles.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Step 1 Collect Complete Employee Information<\/h2>\r\n\r\n    <p>\r\n      Before payroll can be prepared properly, employers need accurate information from the new employee. Missing or incorrect details can cause registration issues, contribution errors and delays.\r\n    <\/p>\r\n\r\n    <p>Employers should usually collect:<\/p>\r\n\r\n    <ul>\r\n      <li>Full name according to identity document<\/li>\r\n      <li>NRIC or passport details<\/li>\r\n      <li>Current address<\/li>\r\n      <li>Contact number and email<\/li>\r\n      <li>Bank account details<\/li>\r\n      <li>EPF number if available<\/li>\r\n      <li>SOCSO number if available<\/li>\r\n      <li>Income tax number if available<\/li>\r\n      <li>Emergency contact details<\/li>\r\n      <li>Signed offer letter or employment contract<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      For foreign employees, employers should also ensure valid work pass and immigration documentation are properly managed. Statutory obligations may differ depending on employee status, so employers should check current official guidance.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Step 2 Register the Employer Where Required<\/h2>\r\n\r\n    <p>\r\n      If a company is hiring employees for the first time, it should check whether employer registration has been completed with EPF and PERKESO.\r\n    <\/p>\r\n\r\n    <p>\r\n      MalaysiaBiz summarises that employers need to register with EPF within seven days from the date the employer is first responsible for contributing, and with SOCSO within thirty days from the date of employment.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/malaysiabiz.gov.my\/en\/portal\/registration-requirement\" target=\"_blank\" rel=\"noopener\">\r\n        MalaysiaBiz Registration Requirement\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Employers should not assume registration is only needed after the business grows larger. If the company has an employee and becomes liable to contribute, registration should be handled promptly.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Step 3 Register or Update the New Employee<\/h2>\r\n\r\n    <p>\r\n      After employer registration is in place, the next step is to ensure the new employee is properly registered or updated in the relevant systems.\r\n    <\/p>\r\n\r\n    <p>\r\n      For EPF, the employer should check whether the employee already has an EPF number and register the employee if needed. For SOCSO and EIS, employers should ensure employee details are registered through the correct PERKESO process.\r\n    <\/p>\r\n\r\n    <p>\r\n      Getting this right from the beginning helps avoid payroll adjustment issues later.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/www.kwsp.gov.my\/en\/employer\/responsibilities\/register-employee\" target=\"_blank\" rel=\"noopener\">\r\n        KWSP Register Your Employees\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/perkeso.gov.my\/en\/\" target=\"_blank\" rel=\"noopener\">\r\n        PERKESO Official Website\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Step 4 Calculate Contributions Correctly<\/h2>\r\n\r\n    <p>\r\n      Employers must calculate EPF, SOCSO and EIS contributions correctly according to the latest official contribution rates and schedules.\r\n    <\/p>\r\n\r\n    <p>\r\n      This is important because different contribution rules may apply depending on employee age, wage level, citizenship status, contribution category and statutory updates. Employers should avoid relying on outdated payroll templates.\r\n    <\/p>\r\n\r\n    <p>\r\n      The safest approach is to check the official KWSP and PERKESO schedules, or use a reliable payroll provider that updates contribution tables correctly.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/www.kwsp.gov.my\/en\/employer\/responsibilities\/mandatory-contribution\" target=\"_blank\" rel=\"noopener\">\r\n        KWSP Mandatory Contribution\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/perkeso.gov.my\/en\/our-services\/employer-employee\/contributions.html\" target=\"_blank\" rel=\"noopener\">\r\n        PERKESO Contribution Rates\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Step 5 Understand the Real Cost of Hiring<\/h2>\r\n\r\n    <p>\r\n      When offering salary to a new employee, employers should consider more than the basic salary amount. Statutory contributions form part of the total employment cost.\r\n    <\/p>\r\n\r\n    <p>\r\n      For example, if a company offers a monthly salary, the employer should also calculate employer contribution obligations, payroll processing, benefits, insurance, equipment, training and onboarding cost.\r\n    <\/p>\r\n\r\n    <p>\r\n      This is why salary planning should happen before the offer is made. If the company only considers basic salary, the final cost may be higher than expected.\r\n    <\/p>\r\n\r\n    <p>\r\n      Clear communication also matters. Candidates often compare the full package, not just headline salary. Explaining deductions, benefits and statutory contributions clearly can help build trust from the start.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/eternity-recruitment.com\/cn\/2026-salary-guide-for-popular-jobs-in-malaysia\/\" target=\"_blank\" rel=\"noopener\">\r\n        2026 Salary Guide for Popular Jobs in Malaysia\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/eternity-recruitment.com\/cn\/salary-offers-malaysia\/\" target=\"_blank\" rel=\"noopener\">\r\n        Salary Offers Malaysia\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Step 6 Issue Clear Employment Documents<\/h2>\r\n\r\n    <p>\r\n      Statutory onboarding should be supported by clear employment documents. A new employee should understand the role, salary, working hours, probation terms, benefits, notice period and company expectations.\r\n    <\/p>\r\n\r\n    <p>A good offer letter or employment contract should include:<\/p>\r\n\r\n    <ul>\r\n      <li>Job title<\/li>\r\n      <li>Start date<\/li>\r\n      <li>Work location<\/li>\r\n      <li>Basic salary<\/li>\r\n      <li>Allowances if any<\/li>\r\n      <li>Working hours<\/li>\r\n      <li>Probation period<\/li>\r\n      <li>Leave entitlement<\/li>\r\n      <li>Notice period<\/li>\r\n      <li>Benefits summary<\/li>\r\n      <li>Confidentiality terms where needed<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      This reduces misunderstanding before the new employee joins. It also helps HR and payroll teams process the employment correctly.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/eternity-recruitment.com\/cn\/probation-period-malaysia-employer-guide\/\" target=\"_blank\" rel=\"noopener\">\r\n        Probation Period Malaysia Employer Guide\r\n      <\/a>\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Step 7 Keep Payroll and Contribution Records<\/h2>\r\n\r\n    <p>\r\n      Employers should keep proper payroll and contribution records. This includes salary details, employee deductions, employer contributions, payment dates and statutory submission records.\r\n    <\/p>\r\n\r\n    <p>\r\n      Record keeping is important because it protects both employer and employee. If there is a dispute about salary, contribution payment or employment status, records help show what was done.\r\n    <\/p>\r\n\r\n    <p>\r\n      KWSP states that employers are required to keep records and comply with existing policies and requirements.\r\n    <\/p>\r\n\r\n    <p>\r\n      Reference:\r\n      <a href=\"https:\/\/www.kwsp.gov.my\/en\/employer\/responsibilities\/records\" target=\"_blank\" rel=\"noopener\">\r\n        KWSP Employer Record Keeping\r\n      <\/a>\r\n    <\/p>\r\n\r\n    <p>\r\n      Employers should also ensure payroll data is handled carefully because employee personal information is sensitive.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>New Hire Checklist<\/h2>\r\n\r\n    <p>\r\n      Here is a practical checklist employers can use when hiring a new employee in Malaysia.\r\n    <\/p>\r\n\r\n    <ul>\r\n      <li><strong>Confirm the employee category:<\/strong> Malaysian citizen, permanent resident, foreign worker and age category.<\/li>\r\n      <li><strong>Register your business if this is your first hire:<\/strong> Check EPF and PERKESO employer registration requirements.<\/li>\r\n      <li><strong>Collect complete employee details:<\/strong> IC or passport, bank details, EPF number, SOCSO number and tax information where available.<\/li>\r\n      <li><strong>Register or update the new employee:<\/strong> Ensure the employee is properly recorded with the relevant statutory systems.<\/li>\r\n      <li><strong>Set up payroll correctly:<\/strong> Apply the right contribution rates, wage thresholds and employee category.<\/li>\r\n      <li><strong>Explain deductions clearly:<\/strong> Help the employee understand payslip deductions and statutory benefits.<\/li>\r\n      <li><strong>Pay on time:<\/strong> Aim to submit contributions before the required monthly deadline.<\/li>\r\n      <li><strong>Keep records:<\/strong> Store payslips, contribution statements and registration confirmations properly.<\/li>\r\n      <li><strong>Review other registrations:<\/strong> PCB with LHDN, HRD Corp or other requirements may apply depending on the company.<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      A simple checklist can prevent avoidable mistakes. It also gives the new employee a more professional first impression of the company.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Common Mistakes Employers Should Avoid<\/h2>\r\n\r\n    <p>\r\n      Many compliance problems happen because employers treat statutory onboarding as an afterthought.\r\n    <\/p>\r\n\r\n    <p>Common mistakes include:<\/p>\r\n\r\n    <ul>\r\n      <li>Hiring before employer registration is ready<\/li>\r\n      <li>Using incorrect employee details<\/li>\r\n      <li>Missing EPF or SOCSO numbers<\/li>\r\n      <li>Using the wrong EPF rate around the RM5,000 threshold<\/li>\r\n      <li>Forgetting foreign worker EPF where applicable<\/li>\r\n      <li>Calculating SOCSO or EIS above the RM6,000 wage ceiling<\/li>\r\n      <li>Using outdated contribution tables<\/li>\r\n      <li>Not calculating total employment cost before offer<\/li>\r\n      <li>Not explaining salary deductions clearly<\/li>\r\n      <li>Submitting late, which may lead to interest, penalties or follow up issues<\/li>\r\n      <li>Delaying payroll setup until the last minute<\/li>\r\n      <li>Not keeping proper contribution records<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      These mistakes can be avoided with a proper onboarding checklist and clear communication between HR, payroll, accounting and management.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Why This Matters for Hiring<\/h2>\r\n\r\n    <p>\r\n      Statutory contributions affect more than payroll. They shape your hiring budget, the way you present an offer and how confident your new employee feels about joining a well run company.\r\n    <\/p>\r\n\r\n    <p>\r\n      Candidates often compare the full package, not just the headline salary. When employers explain salary, deductions, benefits and statutory contributions clearly, they create a smoother candidate experience.\r\n    <\/p>\r\n\r\n    <p>\r\n      This is also part of employer branding. A candidate who receives clear documents, accurate payslip explanations and organised onboarding is more likely to feel that the company is professional and trustworthy.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Why Recruitment Quality Still Comes First<\/h2>\r\n\r\n    <p>\r\n      EPF, SOCSO and EIS are important after hiring, but the quality of hiring still starts before statutory onboarding.\r\n    <\/p>\r\n\r\n    <p>\r\n      If the wrong candidate is hired, the employer still needs to process payroll, contributions, onboarding and training. If the employee leaves shortly after joining, the company repeats the hiring process and bears unnecessary cost.\r\n    <\/p>\r\n\r\n    <p>\r\n      This is why a strong recruitment process matters. Employers should define the role clearly, benchmark salary properly, screen candidates carefully and confirm motivation before making an offer.\r\n    <\/p>\r\n\r\n    <p>\r\n      A <strong>Recruitment Agency<\/strong> can help reduce mismatch by supporting candidate sourcing, screening and shortlist quality.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>How Eternity Recruitment Can Help<\/h2>\r\n\r\n    <p>\r\n      <strong>Eternity Recruitment<\/strong> supports employers before the new employee reaches the payroll stage. As a trusted <strong>Recruitment Agency<\/strong>, we help businesses find suitable candidates, understand salary expectations and reduce hiring mismatch.\r\n    <\/p>\r\n\r\n    <p>Our recruitment support can help employers with:<\/p>\r\n\r\n    <ul>\r\n      <li><strong>Salary and package guidance:<\/strong> Understanding what candidates in your industry expect.<\/li>\r\n      <li><strong>Realistic hiring budgets:<\/strong> Considering total employment cost, not only salary.<\/li>\r\n      <li><strong>Targeted shortlists:<\/strong> Helping the right person get ready to start on time.<\/li>\r\n      <li><strong>Role clarity:<\/strong> Clarifying requirements before hiring begins.<\/li>\r\n      <li><strong>Candidate screening:<\/strong> Reviewing experience, motivation and expectations.<\/li>\r\n      <li><strong>Offer support:<\/strong> Improving offer acceptance quality and reducing mismatch.<\/li>\r\n    <\/ul>\r\n\r\n    <p>\r\n      For payroll setup and statutory filing, employers should work with their payroll provider, accountant or relevant professional advisor. For hiring and candidate selection, Eternity Recruitment can help you build a smoother process from role planning to offer acceptance.\r\n    <\/p>\r\n\r\n    <div class=\"er-epf-note\">\r\n      Suggested internal link: Read more at\r\n      <a href=\"\/cn\/how-to-choose-the-right-recruitment-agency-for-your-business\/\">How to Choose the Right Recruitment Agency for Your Business<\/a>\r\n    <\/div>\r\n  <\/section>\r\n\r\n  <section class=\"er-epf-section\">\r\n    <h2>Final Thoughts<\/h2>\r\n\r\n    <p>\r\n      Hiring a <strong>New Employee<\/strong> in Malaysia is not only about selecting the right candidate. Employers must also manage statutory responsibilities such as <strong>EPF<\/strong>, <strong>SOCSO<\/strong> and <strong>EIS<\/strong> properly.\r\n    <\/p>\r\n\r\n    <p>\r\n      These requirements protect employees and help employers maintain proper compliance. From registration and contribution calculation to payroll records and employment documents, every step should be handled carefully.\r\n    <\/p>\r\n\r\n    <p>\r\n      Employers should not leave statutory onboarding until the last minute. A strong process starts before the first working day and continues through payroll, probation and long term employee management.\r\n    <\/p>\r\n\r\n    <p>\r\n      With support from <strong>Eternity Recruitment<\/strong>, a trusted <strong>Recruitment Agency<\/strong>, employers can improve the hiring stage before statutory onboarding begins. Better hiring decisions lead to smoother onboarding, stronger retention and fewer costly replacement issues.\r\n    <\/p>\r\n  <\/section>\r\n\r\n  <div class=\"er-epf-highlight\">\r\n    \u201cBetter hiring decisions lead to smoother onboarding, stronger retention and fewer costly replacement issues.\u201d\r\n  <\/div>\r\n\r\n  <section class=\"er-epf-cta\">\r\n    <div class=\"er-epf-cta-top\">\r\n      <div class=\"er-epf-cta-label\">Work With Us<\/div>\r\n\r\n      <h2>Looking to Grow Your Business or Hire the Right People?<\/h2>\r\n\r\n      <p>\r\n        Eternity Recruitment helps businesses connect with suitable talent across Malaysia and beyond. Whether you are hiring your first employee, expanding your team or looking for strategic hires, our team can support your hiring needs with care, professionalism and market understanding.\r\n      <\/p>\r\n    <\/div>\r\n\r\n    <div class=\"er-epf-cta-bottom\">\r\n      <div class=\"er-epf-cta-info\">\r\n        <span>Contact<\/span>\r\n        <strong>+6016 418 1648<\/strong>\r\n      <\/div>\r\n\r\n      <div class=\"er-epf-cta-info\">\r\n        <span>Location<\/span>\r\n        <strong>Bangsar South, Kuala Lumpur<\/strong>\r\n      <\/div>\r\n\r\n      <div class=\"er-epf-cta-info\">\r\n        <span>Website<\/span>\r\n        <a href=\"https:\/\/eternity-recruitment.com\/cn\/\" target=\"_blank\" rel=\"noopener\">\r\n          www.eternity-recruitment.com\r\n        <\/a>\r\n      <\/div>\r\n    <\/div>\r\n  <\/section>\r\n\r\n<\/article>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>When hiring a New Employee in Malaysia, employers must prepare more than an offer letter. Proper statutory onboarding includes accurate employee details, payroll setup, employment documents, and required contributions for EPF, SOCSO, and EIS where applicable. In this guide, we explain what employers should know about registration, contribution calculation, record keeping, and common onboarding mistakes to avoid. Learn how Eternity Recruitment, a trusted Recruitment Agency, helps businesses hire suitable candidates before the statutory onboarding process begins.<\/p>","protected":false},"author":46,"featured_media":10236,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[31],"tags":[162],"class_list":["post-10230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","tag-eternity-recruitment"],"rttpg_featured_image_url":{"full":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event.jpg",1456,816,false],"landscape":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event.jpg",1456,816,false],"portraits":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event.jpg",1456,816,false],"thumbnail":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event-150x150.jpg",150,150,true],"medium":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event-300x168.jpg",300,168,true],"large":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event-1024x574.jpg",1024,574,true],"1536x1536":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event.jpg",1456,816,false],"2048x2048":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event.jpg",1456,816,false],"trp-custom-language-flag":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event-18x10.jpg",18,10,true],"htmega_size_585x295":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event-585x295.jpg",585,295,true],"htmega_size_1170x536":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event-1170x536.jpg",1170,536,true],"htmega_size_396x360":["https:\/\/eternity-recruitment.com\/wp-content\/uploads\/2026\/10\/people-taking-part-high-protocol-event-396x360.jpg",396,360,true]},"rttpg_author":{"display_name":"Xue Er","author_link":"https:\/\/eternity-recruitment.com\/cn\/author\/xue-er\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/eternity-recruitment.com\/cn\/category\/insights\/\" rel=\"category tag\">Insights<\/a>","rttpg_excerpt":"When hiring a New Employee in Malaysia, employers must prepare more than an offer letter. Proper statutory onboarding includes accurate employee details, payroll setup, employment documents, and required contributions for EPF, SOCSO, and EIS where applicable. In this guide, we explain what employers should know about registration, contribution calculation, record keeping, and common onboarding mistakes&hellip;","_links":{"self":[{"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/posts\/10230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/comments?post=10230"}],"version-history":[{"count":5,"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/posts\/10230\/revisions"}],"predecessor-version":[{"id":10239,"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/posts\/10230\/revisions\/10239"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/media\/10236"}],"wp:attachment":[{"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/media?parent=10230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/categories?post=10230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eternity-recruitment.com\/cn\/wp-json\/wp\/v2\/tags?post=10230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}