Healthcare, SOCSO and EPF for Foreign Employees in Malaysia (2026 HR Guide)
From June 2026, SOCSO added a non-work injury scheme for foreign workers, and the employee's contribution went up from 0.5% to 1.25%. EPF became mandatory for foreign employees in October 2025. Neither pays for a visit to the doctor with a cold. This guide is for HR teams: what the law requires for an Employment Pass holder, what a government hospital charges a foreigner, and how private hospital admission works with medical insurance.
💡 Key takeaway: Foreign employees, including Employment Pass holders, must be registered with SOCSO within 30 days of hiring. From 1 June 2026 SOCSO has three schemes for foreign workers: employment injury, invalidity and a 24-hour non-work injury scheme. The employer pays 1.75% and the employee 1.25%. EPF has been mandatory for foreign employees since October 2025 wages, at 2% each. These schemes cover injury, invalidity and retirement savings, not a doctor's visit for an ordinary illness. Everyday medical cover is the company's own decision, and medical benefits provided by the employer are tax exempt for the employee.
SOCSO: three schemes for foreign workers
SOCSO (PERKESO) protects foreign workers, including expatriates, who hold a valid passport and a valid work pass such as an Employment Pass. There are three schemes:
- Employment Injury Scheme (since 1 January 2019): accidents at work, accidents while commuting and occupational diseases.
- Invalidity Scheme (since 1 July 2024): invalidity or death from any cause, at any time of day.
- Non-Employment Injury Scheme, LINDUNG 24 JAM (since 1 June 2026): accidents outside working hours that are not related to work.
| Monthly contribution | Employment injury | Invalidity | Non-work injury | Total |
|---|---|---|---|---|
| Employer | 1.25% | 0.5% | None | 1.75% |
| Employee | None | 0.5% | 0.75% | 1.25% |
The employee's share for the non-work injury scheme rises in stages: 0.75% in years 1 and 2, 1.00% in years 3 to 5, and 1.25% from year 6. Benefits include medical treatment for the injury, payments while the employee cannot work, a monthly pension for permanent disability or invalidity, and payments to dependants.
Register a new employee with SOCSO within 30 days of hiring, through the ASSIST portal. Late registration is settled with a compound of RM500 per worker if it is more than 1 month late, rising to RM3,000 per worker if it is more than 5 years late. The Employment Insurance System (EIS), which pays benefits to people who lose their job, covers Malaysians and permanent residents only, so foreign employees do not contribute to it.
EPF: 2% from October 2025
Since 1 October 2025, employers must register non-Malaysian employees who hold a valid passport and work pass with the EPF and pay contributions for them. Domestic workers are excluded. The rate is 2% from the employer and 2% from the employee, paid by the 15th of the following month. The first payment was for October 2025 wages, due by 15 November 2025. When the employee leaves Malaysia, see our checklist for a foreign employee leaving Malaysia for how the savings are withdrawn.
Hiring a foreign engineer for your team?
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee.
Talk to us about a hire →Not sure the salary qualifies? Check the Employment Pass category with our free EP checker.
Sick leave under the Employment Act
Section 60F of the Employment Act 1955 gives paid sick leave after an examination by a doctor appointed by the employer, at the employer's expense. If that doctor is not available, another registered doctor's certificate is accepted. Since the 2023 amendment, this section applies to employees earning more than RM4,000 a month too, so it covers most Employment Pass holders. The Act applies in Peninsular Malaysia and Labuan. Sabah and Sarawak have their own labour ordinances.
| Length of service | Sick leave per year (no hospitalisation) |
|---|---|
| Under 2 years | 14 days |
| 2 to 5 years | 18 days |
| 5 years or more | 22 days |
If a doctor certifies that hospitalisation is necessary, the employee is entitled to up to 60 days of paid sick leave a year. The employee must tell the employer within 48 hours of the start of the leave, or the absence counts as unauthorised.
What a government hospital charges a foreigner
Government hospitals and clinics charge foreigners much more than citizens. The fees are set under the Fees Act 1951 and the Fees (Medical) (Cost of Services) Order 2014. These are the rates published by Hospital Miri, a Ministry of Health hospital, in October 2026:
| Service | Foreigner | Citizen |
|---|---|---|
| General outpatient | RM40 | RM1 |
| Specialist outpatient | RM120 | RM5 |
| Emergency department | RM100 | RM1 |
A foreigner admitted to a government hospital also pays a deposit. For a medical admission it is RM1,400 to RM7,000 depending on the ward class, and for surgery RM2,800 to RM11,000. Ward charges are RM160 to RM320 a day. For an ambulance, police or fire, call 999.
Private hospitals and medical insurance
Most medical bills for illness are not covered by SOCSO or EPF, so medical cover is something the company decides on: for example a group medical insurance plan or paying the employee's medical bills. Medical benefits provided by the employer are exempt from tax in the employee's hands.
At a private hospital, admission without paying upfront depends on the insurer. If the hospital is on the insurer's panel, the hospital asks the insurer for a guarantee letter (GL), which lets the insurer pay eligible bills directly to the hospital. A GL is usually valid for 30 days. At a hospital that is not on the panel, the employee pays first and claims afterwards. Before the employee needs it, give them the insurer's list of panel hospitals and the number to call for a GL.
Settling in a foreign employee
- Relocating a foreign employee: HR checklist
- When a foreign employee leaves Malaysia: employer checklist
- Renting a home for a foreign employee: deposits and stamp duty
- Opening a bank account for a foreign employee
- Driving in Malaysia: licences for foreign employees
- Income tax for foreign employees: what HR does
- Bringing the family: Dependant Pass, school and spouse work
- How to apply for an Employment Pass, step by step
How Seekers can help
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers for your team, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee. For the pass itself, see how to apply for an Employment Pass. Talk to us about a hire.
Frequently asked questions
Do Employment Pass holders need to be registered with SOCSO?
Yes. SOCSO covers foreign workers, including expatriates with an Employment Pass. Register them within 30 days of hiring.
How much is SOCSO for a foreign employee in 2026?
From 1 June 2026 the employer pays 1.75% (employment injury 1.25% and invalidity 0.5%) and the employee pays 1.25% (invalidity 0.5% and non-work injury 0.75%).
Do foreign employees contribute to EPF?
Yes, since October 2025 wages. The employer and the employee each pay 2%. Domestic workers are excluded.
Does SOCSO pay for a foreign employee's doctor visits?
No. SOCSO pays for treatment of injuries covered by its schemes, and for invalidity and death. Visits to the doctor for an ordinary illness are not covered, so the company decides how to provide medical cover.
How much does a government clinic charge a foreigner?
RM40 for a general outpatient visit, RM120 for a specialist and RM100 at the emergency department, at the rates published by the Ministry of Health.
Are company medical benefits taxable for the employee?
No. Medical benefits provided by the employer are exempt from tax for the employee.
Sources
SOCSO schemes and rates: PERKESO, foreign worker protection. Registration within 30 days: PERKESO, registration. Compounds for late registration: PERKESO, enforcement. EIS coverage: PERKESO, clarification on coverage for foreign workers. EPF: EPF, contribution for non-Malaysian citizen employees. Sick leave: Employment Act 1955, section 60F and First Schedule. Government hospital fees: Hospital Miri, Ministry of Health (updated 27 October 2026). Tax exemption: LHDN, tax exemptions and PwC Worldwide Tax Summaries, Malaysia. Guarantee letters: Great Eastern, how to make a medical claim in Malaysia. This guide is general information, not legal or tax advice. Last checked: 28 October 2026.