SKBBK Refund in Malaysia: Who Can Claim and How Employers Should Correct Payroll
Following the change that made the Non-Employment Injury Scheme, also known as SKBBK or LINDUNG 24 Jam, voluntary for local employees, some employers may have contributions that are eligible for a refund.
However, not every SKBBK contribution can be refunded. In particular, the contribution for June 2026 remains mandatory and is not refundable.
This guide explains when a refund may apply, how employers can submit the application and how payroll records should be corrected after the refund is approved.
At a Glance
| Question | Answer |
|---|---|
| Can the June 2026 contribution be refunded? | No. PERKESO states that June 2026 was mandatory under the law then in force. |
| From which month may a refund apply? | July 2026 onwards, depending on the employee's valid opt-out period. |
| Can an employee apply directly? | No. The refund application must be made by the employer. |
| Where does the employer apply? | ASSIST Portal: My Sites → Inspection Module → Refund Menu. |
| Is there a fixed processing period? | PERKESO's published FAQ does not state a guaranteed processing time. |
| Who should ultimately receive the refunded employee contribution? | The affected employee, because the SKBBK contribution is fully borne by the employee. |
Why Is an SKBBK Refund Possible?
SKBBK took effect on 1 June 2026 and was initially mandatory for employees covered under the Employees' Social Security Act 1969.
Following the Cabinet decision on 8 July 2026, participation became:
| Employee category | SKBBK position from 8 July 2026 |
|---|---|
| Local employees, including permanent and temporary residents | Voluntary, subject to the applicable opt-out arrangements |
| Foreign workers | Mandatory |
Local employees who wished to opt out were given a selection period from 13 July to 31 August 2026. Employees who did not opt out remain participants under the “Once In, Always In” principle described in PERKESO's FAQ.
The refund mechanism is therefore relevant where an employer paid contributions for a period that falls after an employee's valid opt-out took effect.
Which Contributions May Be Refunded?
| Situation | Refund position |
|---|---|
| SKBBK contribution for June 2026 | Not refundable |
| Contribution from July 2026 onwards after a valid opt-out | May be refundable, subject to the valid opt-out period and PERKESO's approval |
| Employee with multiple employers, where an unselected employer also paid SKBBK | Refund may be claimed by the unselected employer |
| Duplicate, excess or incorrect payment | May be considered under PERKESO's normal contribution-refund process, subject to verification and approval |
| Local employee who did not validly opt out | No refund merely because the employee later changes their mind |
| Foreign worker contribution | Remains mandatory; voluntary opt-out does not apply |
The effective opt-out period matters. Employers should not assume that every contribution paid from July onwards is automatically refundable.
June 2026 Cannot Be Refunded
PERKESO's FAQ expressly states that June 2026 contributions were mandatory before the Cabinet decision of 8 July 2026 and cannot be refunded.
This also means:
- Any June 2026 contribution already deducted remains a valid contribution.
- An unpaid June 2026 shortfall remains payable.
- June 2026 must not be removed from the employee's payroll or year-to-date PERKESO contribution records.
How Employers Can Apply
PERKESO requires the application to be submitted by the employer through the ASSIST Portal.
- Log in to the ASSIST Portal.
- Select My Sites.
- Open the Inspection Module.
- Select the Refund Menu.
- Complete the contribution-refund application for the affected employee and contribution month.
- Upload or provide the supporting information requested in the portal.
- Keep the submission acknowledgement and monitor the application status.
The standard PERKESO refund form is PKS(K)50. Employers should follow the form or fields generated by the current ASSIST process, together with any additional documents requested by PERKESO.
Employees cannot submit an SKBBK contribution-refund application directly at a PERKESO office. They should follow up with their employer.
How Long Will the Refund Take?
PERKESO's published SKBBK FAQ does not provide a fixed service-level period for completing the refund.
Employers should therefore avoid promising employees that the money will be returned within a specific number of days. The processing time may depend on the completeness of the application and PERKESO's verification.
HR should instead provide the employee with:
- The application date
- The affected contribution month or months
- The amount claimed
- The current application status
- Confirmation once PERKESO approves or pays the refund
How Should Payroll Handle the Refund?
SKBBK contributions are fully borne by the employee. If an eligible amount is refunded to the employer, the employer should return that employee-funded amount to the affected employee.
For payroll purposes, a genuine return of an amount previously deducted should be recorded as a refund of employee SKBBK contribution, not as new salary, allowance or bonus.
| Payroll item | Recommended treatment after approval |
|---|---|
| Gross salary | Do not increase it merely because a contribution is being returned |
| Refund payment | Show separately as “SKBBK Contribution Refund” or similar |
| EPF | Do not calculate EPF again on the returned contribution amount |
| SOCSO/EIS/SKBBK | Do not treat the refund itself as new contribution wages |
| PCB | Do not treat a genuine return of the employee's own deduction as additional taxable remuneration |
| Net pay | Increase by the refund amount paid back to the employee |
| Year-to-date employee PERKESO contribution | Reduce by the approved SKBBK amount refunded, but retain the non-refundable June contribution |
This treatment assumes the payment is strictly a reimbursement of an employee contribution previously deducted. Any additional payment made by the employer should be assessed separately according to its actual nature.
Simple Payroll Example
Assume RM30 was deducted from an employee for an SKBBK contribution that PERKESO later approves for refund.
| Payroll record | Amount |
|---|---|
| SKBBK contribution refund | RM30 |
| Additional EPF, SOCSO, EIS or PCB on the refund | RM0 |
| Additional net payment to employee | RM30 |
The employer should also reduce the employee's year-to-date SKBBK/PERKESO contribution record by RM30. This adjustment should only cover the approved refundable period.
What About EA Form, CP8D and Form E?
The refund may affect the employee-level PERKESO contribution amount reported for the year.
| Document or record | Treatment |
|---|---|
| Payroll year-to-date record | Reduce the employee contribution by the approved refunded amount |
| EA Form | Report the corrected employee PERKESO contribution amount in the relevant contribution field |
| CP8D / e-Data Praisi | Ensure the employee's “Caruman PERKESO” reflects the corrected annual amount |
| Main Form E | There is no separate employee-by-employee SKBBK field on the main Form E itself |
Employers should not remove the June 2026 contribution because it remains mandatory and non-refundable.
If the refund is approved before the annual reporting documents are prepared, use the corrected year-to-date amount when preparing EA and CP8D information.
If EA or CP8D information has already been issued or submitted, keep the PERKESO approval and refund records and follow the applicable HASiL correction procedure. Where the correction method is unclear, confirm it with HASiL before resubmission rather than duplicating the employee record.
HR and Payroll Checklist
- Confirm that the employee is a local employee eligible for voluntary participation.
- Verify that a valid opt-out was submitted and identify its effective period.
- Separate June 2026 from the potentially refundable months.
- Check whether another employer was the designated contributor for a multiple-employer case.
- Submit the refund through the ASSIST Portal as the employer.
- Keep the submission and PERKESO approval records.
- Return the approved employee-funded amount to the employee.
- Record the payment separately from salary and allowances.
- Correct the year-to-date employee PERKESO contribution.
- Use the corrected amount for EA and CP8D reporting.
- Do not promise a fixed refund date unless PERKESO confirms one for the application.
Key Takeaway
SKBBK refunds may apply from July 2026 onwards based on a valid opt-out or other verified overpayment, but June 2026 remains mandatory and cannot be refunded.