A Malaysian netizen urges employers to factor in EPF, SOCSO, and EIS contributions as total hiring costs often exceed basic salary.
A Malaysian man recently sparked debate online after reminding employers not to underestimate the true cost of hiring staff.
In a viral post on Threads, he explained that a minimum salary of RM1,700 isn’t the only expense companies should consider.
“When hiring staff, don’t just think about the RM1,700 salary. Add in the employer’s contributions to EPF, SOCSO, and EIS as well,” the post read.
According to the netizen, a company has to pay at least RM1,953.15 per month for an employee earning the minimum wage — a total of RM23,437.80 per year for just one staff member.
The post also stressed that if businesses feel they cannot afford these costs, they should not hire more staff — and certainly should not skip mandatory contributions. “Don’t use excuses like the business isn’t doing well and then fail to contribute to EPF and SOCSO,” he added.
The post quickly went viral, with netizens applauding the advice and urging companies to be transparent about hiring costs.
“Employers should think about the total cost to hire, not just the basic salary. At the company I work for, they calculate the actual monthly cost for an employee. For a salary of RM2,500, the company actually needs to budget over RM3,000 for that staff member,” one user explained.
“In the past, the government was busy complaining that retirees didn’t have enough pension money… the reality is that salaries have always been low. When salaries are low, contributions are small, and dividends are also minimal,” another user noted.
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