Recently many foreign workers have noticed a new line on their payslip, or bigger deductions than before. The same question keeps coming up: "Why is my pay lower? What is this deduction?" This article explains the three main deductions, EPF, PERKESO (SOCSO) and Lindung 24 Jam, in plain language.
Information as of 30 Sep 2026, based on the PERKESO website and the news reports listed at the end. Rules can change. This is general information, not legal advice.
Summary: who pays how much
According to the PERKESO foreign worker page and a Human Resources Online report on EPF:
| Contribution | Employer | Worker | Started | |---|---|---|---| | EPF | 2% | 2% | Wages of Oct 2025 (contribution month Nov 2025) | | PERKESO, Employment Injury Scheme | 1.25% | None | 1 Jan 2019 | | PERKESO, Invalidity Scheme | 0.5% | 0.5% | 1 Jul 2024 | | PERKESO, Lindung 24 Jam | None | 0.75% (Phase 1) | 1 Jun 2026 |
So from your pay, the usual deductions are EPF 2%, Invalidity Scheme 0.5% and Lindung 24 Jam 0.75%. The Employment Injury Scheme 1.25% is paid by the employer only.
Worked example (illustration)
This is our own simple arithmetic to give you an idea, not a real payslip. If the wage used for calculation is RM1,700:
- EPF 2% = RM34.00
- Invalidity Scheme 0.5% = RM8.50
- Lindung 24 Jam 0.75% = RM12.75
- Total about RM55.25 a month
The actual amount depends on how your employer calculates wages, so ask your employer or payroll if the figures on your payslip differ.
EPF/KWSP headquarters on Jalan Raja Laut, Kuala Lumpur. Photo: User:Two hundred percent., CC BY-SA 3.0, via Wikimedia Commons
EPF: your retirement savings
According to Human Resources Online (3 Oct 2025):
- EPF contributions are mandatory for non-citizen employees starting with October 2025 wages (contribution month November 2025).
- Rate: employer 2% and employee 2% of monthly wages.
- Domestic workers (maids, cooks, gardeners, drivers and so on) are excluded.
- Holders of a Visit Pass (Temporary Employment) and an Employment Pass are registered automatically.
- Employees are encouraged to update their thumbprint at the nearest EPF office starting January 2026.
EPF money is your savings. Ask your employer for your EPF member number and keep it.
PERKESO: protection for accidents and invalidity
According to PERKESO, foreign workers need a valid passport and a valid work pass (for example Visit Pass (Temporary Employment), Employment Pass, Special Pass) to be covered.
The PERKESO building in Kluang, Johor. Photo: Dominic Nelson, CC BY-SA 4.0, via Wikimedia Commons
Benefits listed by PERKESO include:
- Free treatment at panel clinics
- Temporary disablement payments, and permanent disablement assessment by a Medical Board
- Invalidity pension of 50% to 65% of the average assumed monthly wage, with a minimum of RM550 a month
- Funeral benefit: up to RM7,500 if the worker dies in Malaysia and the body is repatriated (RM4,500 for repatriation and RM3,000 for dependants), or RM3,000 if death and burial are in Malaysia
Jalan Ampang near Menara PERKESO, Kuala Lumpur. Photo: Jerry Lim, CC BY-SA 3.0, via Wikimedia Commons
Lindung 24 Jam: the new deduction everyone asks about
Lindung 24 Jam (the Non-Employment Injury Scheme) took effect on 1 Jun 2026 for foreign workers. It covers accidents that are not work-related, including outside working hours. For example, an accident while you are out on a weekend.
Contribution rates (paid by the worker, remitted through the employer), per PERKESO:
- Years 1 to 2: 0.75%
- Years 3 to 5: 1.0%
- Year 6 onwards: 1.25%
Voluntary for locals, mandatory for foreign workers
On 9 July 2026, Cabinet made Lindung 24 Jam contributions voluntary for local employees with immediate effect. For foreign workers, contributions remain mandatory. The Human Resources Ministry will review the scheme by year-end (The Star, 9 Jul 2026; Malay Mail, 9 Jul 2026).
For readers from Sabah and Sarawak: you are Malaysian citizens, so you count as "local" employees, not foreign workers. The voluntary rule for locals applies to you. Ask your employer or PERKESO if your payslip still shows this deduction.
What is not covered
According to PERKESO, Lindung 24 Jam does not cover:
- Accidents outside Malaysia
- Foreign workers who misuse their immigration pass
- Conditions caused by illness (for example diabetes, fever, high blood pressure)
How to check your payslip
- Read every deduction line: EPF, PERKESO (Invalidity Scheme), Lindung 24 Jam. If there is a deduction you do not understand, ask.
- Ask your employer for your EPF member number and PERKESO number.
- Make sure your passport and work pass are valid. PERKESO states this is a condition of coverage.
- Keep your payslip every month, at least as a photo.
- If there is a pay problem, read our guide to wage complaints at JTK Johor Bahru.
For renting a room as a foreign worker, see our foreign worker guide to renting a room in Senai.
Motorcycles on the porch of a rental house. Cover for accidents outside work is why Lindung 24 Jam exists. Photo: Bilik Sewa Senai
Common mistakes and what to ask your employer
- Assuming the deduction is "stolen". EPF, the Invalidity Scheme and Lindung 24 Jam all have an official basis. What you should check is that the amount is right and is remitted to EPF/PERKESO.
- Not knowing your member numbers. Without your EPF and PERKESO numbers, it is hard to verify your contributions.
- Letting your work pass expire. PERKESO states a valid passport and work pass are required for coverage, so do not let your pass lapse without renewal.
- Treating all deductions as the same. Other deductions, such as room rent or meals, are separate matters and should have clear agreement and records.
Reasonable questions to ask your employer:
- Can I see my EPF and PERKESO member numbers?
- What Lindung 24 Jam rate is being deducted now?
- How do I make a claim if there is an accident?
Claims and contacting PERKESO
- Lindung 24 Jam claims go through the LINDUNG Faedah portal (find the link on the PERKESO website)
- PERKESO hotline: 1-300-22-8000 (from abroad: +603 4264 5000)
FAQ
Why is EPF deducted from my pay? Since October 2025 wages, EPF contributions are mandatory for non-citizen employees. The rate is 2% employer and 2% employee.
Is Lindung 24 Jam mandatory for me? For foreign workers, yes. Cabinet only made it voluntary for local employees on 9 July 2026.
I am from Sabah. Am I counted as a foreign worker? No. You are a Malaysian citizen, so you count as a local employee.
Does Lindung 24 Jam cover an accident in my home country? No. PERKESO states accidents outside Malaysia are not covered.
What should I do if I think a deduction is wrong? Show your payslip to your employer and ask for an explanation. If it is not resolved, contact PERKESO at 1-300-22-8000.
Sumber / Sources
- PERKESO, Foreign Workers Protection
- PERKESO, Non-Employment Injury Scheme (LINDUNG 24 Jam)
- The Star, Lindung 24 Jam still mandatory for foreign workers (9 Jul 2026)
- Malay Mail, Lindung 24 Jam contributions now optional for local employees (9 Jul 2026)
- Human Resources Online, Mandatory EPF contributions for non-Malaysian citizen employees (3 Oct 2025)
- Photos: Wikimedia Commons (EPF, Kluang, Menara PERKESO)
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