HR Payroll Malaysia: Monthly Payroll Checklist and 10 Payslip Items to Check

HR payroll in Malaysia means paying each employee's salary every month, deducting their EPF, SOCSO, LINDUNG 24 Jam, EIS and PCB, adding the employer's own EPF, SOCSO and EIS contributions, and paying all of it to KWSP, PERKESO and LHDN by the 15th of the following month. Employees, in turn, should check that each of those items shows up correctly on their payslip.

This guide covers both sides: a monthly payroll checklist for HR and small business owners, a worked payroll run in RM, and the 10 payslip items employees should check. To calculate any one person's numbers, use the KiraBoss salary calculator.

Before your first payroll: registrations

You need payroll registrations even if you only have one employee. KWSP says there is no minimum headcount, and salaried directors count as employees too.

• KWSP (EPF): register as an employer within 7 days of hiring your first worker, then register each employee as a member.
• PERKESO (SOCSO and EIS): register as an employer and register each employee. Contributions are managed through the PERKESO ASSIST Portal.
• LHDN (PCB/MTD): register an employer's number (E number). Notify LHDN of each new employee with Form CP22 through e-CP22 on MyTax within 30 days of their start date.

The monthly payroll checklist

Run these steps in order every month:

1. Collect pay inputs. Basic salary, fixed allowances, overtime, commission, bonus, unpaid leave and claims for the month.
2. Work out gross pay, keeping each item separate. Different deductions use different wage bases.
3. Calculate employee EPF and employer EPF from KWSP's Third Schedule. Overtime and travelling allowance are not EPF wages. Bonus, commission and most allowances are.
4. Calculate SOCSO, LINDUNG 24 Jam and EIS from PERKESO's contribution schedule, capped at RM6,000 of wages.
5. Calculate PCB (MTD) with LHDN's MTD Schedule or the computerised method, using any TP1 reliefs the employee has declared.
6. Pay net salary to each employee and issue a payslip.
7. Remit by the 15th of the next month: EPF to KWSP, SOCSO/LINDUNG/EIS to PERKESO, and PCB to LHDN (submitted through e-PCB, e-Data PCB or e-CP39).
8. Keep records. LHDN requires payroll and tax records to be kept for 7 years.

Example: July salaries are paid at the end of July. The EPF, PERKESO and PCB amounts for July must reach the agencies by 15 August. If the 15th falls on a weekend or public holiday, KWSP accepts payment on the next working day without a late charge.

Worked payroll run: a two-person company

Here's July payroll for a small sdn bhd with two Malaysian employees below 60. Both are single, have no extra TP1 reliefs, and are enrolled in LINDUNG 24 Jam.

Employee A: gaji RM5,000

• Employee EPF (11%): RM550.00
• SOCSO: RM24.75
• LINDUNG 24 Jam: RM37.15
• EIS: RM9.90
• PCB: RM110.00
• Net pay: RM4,268.20
• Employer pays on top: EPF RM650.00 (13%), SOCSO RM86.65, EIS RM9.90

Employee B: gaji RM7,000

• Employee EPF (11%): RM770.00
• SOCSO (capped at RM6,000 wages): RM29.75
• LINDUNG 24 Jam: RM44.65
• EIS: RM11.90
• PCB: RM324.20
• Net pay: RM5,819.50
• Employer pays on top: EPF RM840.00 (12%, because wages are above RM5,000), SOCSO RM104.15, EIS RM11.90

What the company pays, and when

• Salaries paid into bank accounts in July: RM4,268.20 + RM5,819.50 = RM10,087.70
• To KWSP by 15 August: employee RM1,320 + employer RM1,490 = RM2,810.00
• To PERKESO by 15 August: SOCSO RM245.30 + LINDUNG 24 Jam RM81.80 + EIS RM43.60 = RM370.70
• To LHDN by 15 August: PCB RM434.20
• Total July payroll cost: RM13,702.60, made up of RM12,000 gross salaries plus RM1,702.60 in employer contributions

That last number is the one to budget for. Once employer EPF, SOCSO and EIS are added, Employee A costs RM746.55 (about 15%) more than their gross salary and Employee B costs RM956.05 (about 14%) more. For the band-by-band PERKESO amounts behind these figures, see the SOCSO & EIS contribution table 2026. For how EPF is rounded, see EPF contribution rates: employee vs employer.

Year-end payroll deadlines (LHDN)

• Form EA (EC for public sector): give each employee their yearly remuneration statement by the last day of February.
• Form E with C.P.8D: the employer's return, filed by 31 March of the following year. Form E is only complete when C.P.8D is submitted on time, unless the data was already sent through e-Data Praisi.
• Form CP58: by 31 March, if you paid incentives to agents, dealers or distributors.
• When someone leaves: file Form CP22A at least 30 days before an employee's last day. In cases that need tax clearance, withhold money payable to them for up to 90 days or until the clearance letter arrives.

10 payslip items employees should check

1. Pay period. Confirm the month. Back pay, increments and bonuses are sometimes processed in a later month.
2. Basic salary. It should match your contract, less any unpaid leave for a partial month.
3. Allowances. Listed separately (transport, phone, shift). Most allowances count as EPF wages. Travelling allowance does not.
4. Overtime, commission and bonus. Each one should be a separate line. Your EPF should not go up because of overtime, but it should go up in a commission or bonus month.
5. Claims and reimbursements. Money paid back for genuine company expenses is normally not salary and usually doesn't attract EPF or tax.
6. Employee EPF. Usually 11% from the Third Schedule, in whole ringgit for wages up to RM20,000. Employer EPF may also be shown, but it must never be deducted from you.
7. SOCSO, LINDUNG 24 Jam and EIS. Three separate PERKESO lines. None of them should rise once your wages are above RM6,000.
8. PCB. Changes when your pay changes or after you submit TP1 reliefs. It is usually much higher in a bonus month.
9. Other deductions. Salary advances, loans, unpaid leave or zakat. Each should be labelled and something you agreed to.
10. Net pay vs bank credit. The net figure on the payslip should equal what reached your account.

Once a year, compare your EA form total with the 12 payslips. Also check your KWSP i-Akaun to confirm both EPF shares were credited each month.

Common payroll mistakes

• Deducting the employer's EPF share from the employee. This is an offence under Section 47(1) of the EPF Act 1991, with a penalty of up to six years' jail, a fine of up to RM20,000, or both.
• Paying EPF on overtime, or forgetting EPF on bonus and commission.
• Using 13% employer EPF for everyone. It drops to 12% above RM5,000 of wages.
• Missing the 15th. KWSP charges a late payment charge plus dividend on late contributions, and PERKESO charges 6% interest a year on late contributions.
• Not capping PERKESO at RM6,000, or leaving out LINDUNG 24 Jam since its June 2026 start.
• Combining months. KWSP requires contributions every month. Two months can't be paid together as one.
• Forgetting Form EA until employees ask for it at tax-filing time.

Run the numbers

Enter each employee's basic, allowances, overtime and bonus in the salary calculator. It shows employee deductions, employer contributions and net pay line by line, ready to compare with your payroll software or payslip. For a step-by-step explanation of net pay, read how to calculate take-home salary in Malaysia.

KiraBoss is an estimation tool, not a payroll system or professional payroll service. For complex cases (foreign workers, directors' fees, benefits-in-kind, back pay), check with KWSP, PERKESO, LHDN or a payroll professional.