Updating employee statutory details

This field is immediately validated and you will only be able to proceed if the number is correct. The format is ‌for the TRN (maximum 11 numeric characters) as format XX XXXXXXXXXXX.

Select between part-time or full time.

The worker status allows you to select between normal, returning expert program, knowledge worker, and affects the employees tax rate.

The residence status is a drop-down field and allows you to select 'resident' or 'non resident'. If you fall into any of these categories, you will be a resident, if not, you will be a non-resident:

1. The individual is in Malaysia for 182 days or more in a basis year.
2. The individual is in Malaysia for less than 182 days or more consecutively throughout which he was in Malaysia either in the year preceding or immediately following that year of assessment. Temporary absences allowed are for:
   1. absences connected with that individual's service in Malaysia, such as attending conferences or seminars or study abroad;
   2. absences owing to ill-health involving the individual or a member of his immediate family (i.e. parents, spouse, children); and
   3. absence in respect of social visits not exceeding 14 days in the aggregate (social visits include any form of vacation outside Malaysia besides vacation to home country).
3. The individual is in Malaysia for 90 days (the days need not be consecutive days) or more in a basis year, and in each of any 3 out of 4 years of assessment immediately preceding that particular year of assessment he was either considered resident, or in Malaysia for a period or periods amounting in all to 90 days or more.
4. The individual is not in Malaysia during the basis year, or they are in Malaysia for less than 90 days, but:
   1. had been resident for the immediately following basis year; and
   2. had been resident for the 3 immediately preceding basis years
   This setting will affect ‌employee's tax calculations. The following residence status/types are available:
   
   • Non-resident > Non Malaysian: In this scenario, the employee's passport number and passport issuing country are required fields. The SSFW (Social Security Foreign Worker number) is also required;
   • Non-resident > Malaysian: In this scenario, the employee's identity card number is a required field.
   • Resident > Malaysian: In this scenario, the employee's identity card number is a required field. The worker status is and allows you to select between normal, returning expert program, knowledge worker, and affects the employee's tax rate;
   • Resident > Non-Malaysian: In this scenario, the employee's passport number and passport issuing country are required fields. The SSFW (Social Security Foreign Worker number) is also required. The worker status is and allows you to select between normal, returning expert program, knowledge worker, and affects the employee's tax rate;
   • Resident > Permanent resident of Malaysia: In this scenario, the employee's identity card number is a required field. The worker status is and allows you to select between normal, returning expert program, knowledge worker, and affects the employees tax rate.

5. The Employees Provident Fund (KWSP) has announced new legislation, effective with October 2025 salaries, that makes EPF contributions mandatory for all non-Malaysian citizen employees with a valid work pass.

   Our current payroll platform is not configured to handle this new regulation. Specifically, we lack the functionality to:

   • Automatically apply the new statutory contribution rate (2% for both employer and employee) for affected non-Malaysian employees.

   • Generate accurate and compliant statutory reports (Form A) that include these new contributions.

   This policy applies to:

   • All non-Malaysian citizens who hold valid passports and employment passes

   • Workers in all sectors except domestic service

   • New and existing foreign employees in active employment

Mandatory field.

This data will be populated in relevant reports.

This data will be populated in relevant reports.

Mandatory field, will be used in reporting and deductions.

Optional field will be used in reporting and deductions.

This field is optional for reporting purposes.

This field is conditional and will only display if the residence type is 'Non Malaysian'. EPF member type options are Member before Aug 1998 and Member after Aug 1998.

Note: For EPF rate of 11%, Businesses who have opted to contribute the standard rate instead of the reduced rate during the Pandemic, Borang KWSP 17A (Khas 2022) form must be completed by the employee. For employees 60 years and over, depending on the employee's residence type, the applicable EPF rate of 0% or 5.5% is automatically applied in the pay run. Refer to EPF contribution rates for more information. Refer to EPF contribution rates for more information.

You are able to select the following:

• Employment Injury Scheme;
• Employment Injury and Invalidity Scheme

For more information regarding SOCSO, see here.

The SSFW (Social Security Foreign Worker number) is a required field if the employee has the following settings:

• Resident > Non-Malaysian
• Non-resident > Non-Malaysian

This setting is only relevant if the business has been enabled for EIS contributions. This is done via the 'Payroll settings' > 'Statutory settings' page. 

For more information regarding EIS, see here.

When PCB is borne by the employer, the employee will have no PCB deducted from their gross pay. PCB borne by the employer is a taxable perquisite to the employee, and the total perquisite is added to the taxable income of the employee in the following tax year. This means that the employee only has their usual EPF and SOCSO mandatory deductions deducted from their gross salary. By ticking this, the PCB deduction will not affect the employee's net pay.