Employer Cost Calculator 2026

The true cost of hiring in Malaysia: salary plus employer EPF, SOCSO, EIS and the HRDF levy.

RM
RM
Advanced Settings
HRDF levy:
Employee below 60:
Malaysian resident:
Update Notes
  • 11 Jul 2026: Initial release. Employer contributions follow the official tables: EPF Third Schedule (13% for wages up to RM5,000, 12% above, 4% from age 60), SOCSO First Category employer share, EIS Act 800, plus the optional HRDF levy at 1% (employers with 10 or more Malaysian employees) or 0.5% (5-9 employees, optional).

About the Employer Cost Calculator

A RM5,000 hire does not cost RM5,000. On top of gross wages, a Malaysian employer pays EPF (13% for wages up to RM5,000, 12% above), the SOCSO employer share, EIS, and for most companies with 10 or more Malaysian employees the 1% HRDF levy. This calculator adds it all up from the official KWSP, PERKESO and PSMB tables so you can budget the true monthly and annual cost of a hire before you make the offer.

It uses the same statutory engine as HRWork payroll. To see the employee's side - take-home pay after deductions - use the Salary Calculator.

Frequently Asked Questions

How much does an employee really cost in Malaysia?
On top of the gross salary, the employer pays EPF (13% for wages up to RM5,000, 12% above), SOCSO employer share (about 1.75%), EIS (0.2%, capped) and, for companies with 10 or more Malaysian employees, the 1% HRDF levy - typically adding 13% to 15% on cost.
What is the HRDF levy?
A monthly levy under the PSMB Act 2001 paid into the Human Resource Development Fund: 1% of monthly wages (salary plus fixed allowances) for employers with 10 or more Malaysian employees, or an optional 0.5% for employers with 5 to 9. The fund reimburses approved training costs.
Do employer contributions come out of the employee's salary?
No. Employer EPF, SOCSO, EIS and HRDF are paid by the company on top of the gross salary. The employee's own deductions are separate - see the Salary Calculator for those.
Does the employer EPF rate change with age?
Yes. From age 60 the employer rate drops to 4% and the employee share stops. Below 60 it is 13% for wages up to RM5,000 and 12% above.

Employer contributions follow the official EPF Third Schedule, PERKESO SOCSO First Category and EIS Act 800 tables, and the PSMB (HRDF) levy rates - the same statutory engine that powers HRWork payroll. Excludes bonus months, overtime, benefits and insurance. Always refer to KWSP, PERKESO and HRD Corp for official figures.