Employee’s Social Security Act 1969
The Social Security Organisation (SOCSO) provides two social security schemes to protect the welfare of employees and their dependents under the Employees’ Social Security Act 1969. The two social security schemes namely are:
- Employment Injury Insurance Scheme
- Invalidity Pension Scheme
The Employment Injury Insurance Scheme provides employees with coverage by way of cash benefits and medical care in the event of any disablement or death due to employment injury.
The Invalidity Pension Scheme provides 24-hour coverage to employees against invalidity or death due to any cause not connected with his employment. However, the employee must fulfill the condition to be eligible for invalidity pension.
Employer Eligibility
Any employer who hires one or more employees as defined under the Act is required to register and make contributions to SOCSO.
Employee Eligibility
Employees receiving a monthly salary of three thousand ringgit (RM3,000) or less are required to contribute to SOCSO, Employees with a monthly salary of more than RM3,000, who have not registered and contributed to SOCSO, have the option of registering and contributing as long as both employer and employee agree to contribute. However, when an employee is already contributing under the said Act, he will still be eligible to contribute and be covered regardless of his monthly salary thereafter. The principal ‘Once In Always In‘ is applicable.
For details visit PERKESO.
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Filed Under: Malaysia Labour Law
