Overview
This guide shows how to record accrual-based journal entries for monthly salary, Employees Provident Fund (EPF) and Social Security Organisation (SOCSO) in Malaysia. We use a realistic example and show the entries at three stages: accrual, salary payment, and statutory payment.
Who is this for?
SMEs, accountants, and bookkeepers working with Malaysian payroll.
Software
Examples align with AutoCount Accounting flows.
Key Outcome
Consistent, audit-ready journals from month end to payment.
Heads-up: Rates and rules can change. Always confirm current EPF/SOCSO rates and due dates with official sources: EPF (KWSP) · SOCSO (PERKESO).
1. Month-End Accrual Entries
Example assumptions (illustrative):
- Gross salary: RM10,000
- Employee EPF: RM1,100 (deducted from staff)
- Employer EPF expense: RM1,300
- Employee SOCSO: RM100
- Employer SOCSO expense: RM100
- Net salary to pay: RM8,800
| ACCOUNT | DEBIT (RM) | CREDIT (RM) | NOTES |
|---|---|---|---|
| Salary Expensee | 10,000 | Gross payroll for the month | |
| EPF Expense (Employer) | 1,300 | Employer contribution | |
| SOCSO Expense (Employer) | 100 | Employer contribution | |
| EPF Payable (Employee) | 1,100 | Employee deduction | |
| SOCSO Payable (Employee) | 100 | Employee deduction | |
| EPF Payable (Employer) | 1,300 | Employer portion | |
| SOCSO Payable (Employer) | 100 | Employer portion | |
| Salary Payable (Net) | 8,800 | Net to employees | |
| Total | 11,400 | 11,400 |
Tip: Keep employee and employer statutory payables in separate ledger accounts for clarity. It simplifies reconciliation when you remit.
2. Paying Net Salary
When you transfer salaries to staff, clear the Salary Payable (Net):
| ACCOUNT | DEBIT (RM) | CREDIT (RM) | NOTES |
|---|---|---|---|
| Salary Payable (Net) | 8,800 | Clear liability | |
| Bank | 8,800 | Outflow to employees |
3. Paying EPF & SOCSO
By the statutory deadline (commonly the middle of the following month), remit contributions and clear payables:
| ACCOUNT | DEBIT (RM) | CREDIT (RM) | NOTES |
|---|---|---|---|
| EPF Payable(Employee) | 1,100 | Clear employee deduction | |
| EPF Payable (Employer) | 1,300 | Clear employer portion | |
| SOCSO Payable (Employee) | 100 | Clear employee deduction | |
| SOCSO Payable (Employee) | 100 | Clear employer portion | |
| Bank | 2,600 | Remittance to EPF & SOCSO |
Where to pay: EPF via i-Akaun Employer; SOCSO via ASSIST/Perkeso Portal.
Alternative Posting Methods
Best Practices & Deadlines
- Lock your payroll before posting accruals to avoid rework.
- Use separate ledgers for Employee vs Employer contributions.
- Reconcile monthly: Payables should hit zero after remittance.
- Document approvals: Attach payroll summary and statutory schedules to journals.
- Watch due dates: Remit within the prescribed window to avoid penalties (check EPF & SOCSO portals for current cut-offs).
AutoCount Tip: Use AutoCount’s recurring journal / templates to standardize month-end entries and reduce errors.
FAQs
You can, but it’s clearer to maintain separate liability accounts (Employee vs Employer). It improves reconciliation when the remittance spans multiple months or adjustments.
Still accrue expenses at month-end. On payment date, clear the Salary Payable (Net). Statutory payables remain until you remit EPF/SOCSO.
Not mandatory. You can combine into one remittance journal if both are paid the same day. Keep references (payment IDs) for audit.
Post adjustment journals in the period discovered with clear narration and attach supporting schedules. For statutory corrections, follow EPF/SOCSO guidance.
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