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# [Version 3.0] How the MySyarikat System Calculates Staff EIS/SIP Contributions (EIS Automatic)

The MySyarikat system calculates the Employee Insurance System (SIP) deduction using basic salary & the deduction is calculated according to the rate set by SOCSO.  
  
For reference & more information, you can refer to the following link: [https://www.perkeso.gov.my/kadar-caruman.html](https://www.perkeso.gov.my/kadar-caruman.html)

|| Note: This function needs to be 'On' to avoid any EIS deduction calculation errors

![](https://storage.crisp.chat/users/helpdesk/website/bfd54186502de00/screenshot-2024-11-25-120028_1khd4u.png)
How is this value calculated in the system?

![](https://storage.crisp.chat/users/helpdesk/website/bfd54186502de00/screenshot-2024-11-25-120202_f9ylot.png)
Click the 'View' icon next to How did we calculate this? The following description will be displayed:

![](https://storage.crisp.chat/users/helpdesk/website/bfd54186502de00/screenshot-2024-11-25-120234_fl57af.png)
1) The calculation is calculated according to the basic salary of the staff

![](https://storage.crisp.chat/users/helpdesk/website/bfd54186502de00/screenshot-2024-11-25-112855_apc5tx.png)
2) Look at the Rate of contribution for Employees' Social Security Act 1969 (Act 4) table on the SOCSO website. Then, you can refer to column 29 > RM2,400 to RM2,500 will display the contribution amount for employee & employer

![](https://storage.crisp.chat/users/helpdesk/website/bfd54186502de00/screenshot-2024-11-25-120337_10afcjd.png)