In Malaysia, the Social Security Organization (SOCSO), also known as Pertubuhan Keselamatan Sosial (PERKESO), provides social security to employees. Knowing the full extent of SOCSO benefits is key to ensuring you are protected from the unexpected arising from sickness, accident and even death. In this article, we will take you through the SOCSO benefits you can receive, how they work and how to make a SOCSO claim for critical illness and so on.
What is SOCSO and Who is Eligible?
SECURED OPTIONS SOCSO is an abbreviation for “Social Security Organisation”, which is a Government agency to provide social security protections to the country’s employees. It administers benefits to employees that are injured, made disabled or dead as a result of their occupation. SOCSO benefits are available in Malaysia to:
- Employees are in a contract of service or apprenticeship.
- Contractual or temporary staff under the employment of the Federal or State Government and Statutory Bodies.
Employers are issued with strict registration and contribution obligations to SOCSO for all eligible employees, creating peace of mind that employees are registered and also have access to PERKESO benefits. Employers must report work-related accidents within 48 hours.
SOCSO Contribution Rates for Employees and Employers
The SOCSO contribution is calculated as a percentage of the employee’s monthly salary, but the percentage depends on the brackets of the employee. Both the employee and employer contribute a certain percentage of the salary to the fund, but the amounts differ according to the employee’s income.
- Employees earning RM1,500 to RM5,500 contribute 0.5% of their salary to SOCSO.
- Employees earning RM6,000 or more still contribute based on the RM6,000 ceiling.
Employers are also expected to pay a larger contribution share of 1.25% of the employees’ salary. E.g. an employees’ salary is RM6,0000, the employer contributes an amount corresponding to 1.25% of 6,000, that is RM75.
By paying contributions to SOCSO, the employees become protected from innumerable incidences and the onus to ensure that they are provided benefaction falls on the employer as well.
SOCSO benefits
There are several types of SOCSO benefits available to workers employed under SOCSO. They are as follows:
Employment Injury Benefits
This benefit is payable to employees who have sustained from an employment accident or have become ill by contact with any disease under the workplace. They are divided into two:
- Industrial Accidents - injuries sustained at the place of employment. Employers who do not participate in this scheme are entitled to provide compensation for such disabilities as:—
- Commuting Accidents: Accidents arising while going to or returning from work.
- Emergency Accidents: Accidents as a result of attending to an emergency.
- Occupational Diseases: Diseases arising from the process of work, e.g., deafness from noise or respiratory problems due to noxious substances.
Benefits paid to employees in respect of Employment Injury Scheme are of two types:—
- Medical Benefits: Covering medical treatment, rehabilitation.
- Temporary Disablement Benefits: If the employee is temporarily disabled from work, he is compensated.
- Permanent Disablement Benefits: In the event of permanent disablement, compensation is paid to the employee for their ongoing needs.
- Constant-attendance Allowance: For the disabled individual who requires constant attendance as a result of the disablement.
- Dependents’ Benefit: If the employee dies as a result of a work-related accident, benefits are paid to their dependents.
- Funeral Benefit: A funeral benefit is paid to the dependents of an employee dying as a result of an employment injury.
Invalidity and Survivors’ Benefits
Invalidity Scheme. This provides cover for employees who become invalid or die from causes, not merely work related. Even in cases of sickness or injury not relating to work, employees are still covered by the scheme. The dying mentions:
- Invalidity Pension: Recurring payments to employees who are unable to work because of sickness.
- Invalidity Grant: Lump sum to employees with invalidity.
- Constant-attendance Allowance: For employees who require constant personal attendance.
- Survivors’ Pension: Conferred to dependents of employees who have passed away.
- Funeral Benefit: A benefit that goes towards funerals.
- Rehabilitation and Education Benefits: Vocational rehabilitation and education benefits for dependents.
Employment Insurance System (EIS)
In addition to the benefits from SOCSO, employees also enjoy the benefits of the Employment Insurance System (EIS) as a separate but a major constituent of the social security system.
Job Search and Re-Employment Benefits
When a job is lost, EIS benefits available during that transition period include:
- Job Search Allowance (JSA) - For up to 6 months, a monthly allowance to help find new employment.
- Reduced Income Allowance (RIA): Given to employees with multiple sources of income who lose some of that income.
- Training Fee: Financial assistance for vocational training, with coverage of up to RM4,000.
- Training Allowance: Employees can receive allowances of RM10-RM20 for each day of training for a maximum of 6 months.
- Re-Employment Placement Programme: Assistance with job placement through SOCSO Employment Services.
If you are struggling financially during your job search, then you can also consider Amanahkredit for instant loans. EIS also gives the re-employment allowance which is a one off lump sum, a quarter of the overall JSA entitlement, to all people returning to work if they have been receiving job search.
Career counselling is offered to job seekers to assist if there are problems they are facing looking for a job and give them some aid.
Special Schemes under SOCSO
In addition to the normal SOCSO there are special schemes designed to protect certain workforces
Self-Employment and Housewives’ Protection Programs
Self-Employment Social Security Scheme (2017), was expanded in 2020 to also protect self-employed workers. This relates to people working in transport, agriculture, beauty services, IT and advertising.
- Self-employed workers contribute to the scheme based on their monthly income, starting from RM13.10 per month for those earning RM1,050 per month.
- Housewives are also eligible for a special Social Security Scheme to protect them against domestic accidents, illness, and disability. The contribution for housewives is a low minimum of RM10 per month.
These schemes allow everyone not in traditional employment to enjoy SOCSO protection.
SOCSO Claim for Critical Illness
How to claim for SOCSO if you are hospitalized for critical illness and other benefits. All these are usually done by your employer, who has to submit -
- Accident Report (Form 34) to SOCSO’s office.
- Punch cards/attendance record and a medical certificate.
- A police report and route sketch for commuting accidents.
As a self-employed or housewife, claims must be made directly to SOCSO but documentation will be the same as employee’s.
Documents to be Submitted for Claims
Documentation that will be required for making a claim includes:-
- Accident Report (Form 34).
- Medical Certificate or attendance card.
- Proof of salary.
- Identity card for verification.
Ensure that you have all the required paperwork to speed up the claim process.
SOCSO Health Screening and Other Benefits
More than just financial coverage, SOCSO provides help for your health. For employees over the age of 40, SOCSO’s Health Screening Program (HSP) offers free annual health check-ups to screen for potential health risks and signs of chronic diseases.
Firstly, employees wanting to know their eligibility for HSP should verify their eligibility via the SeHAT Portal and get your HSP number. Bring this number and your MyKAD to any of the participating clinics for your free screening. Our thanks to SOCSO for offering other miscellaneous benefits like access to rehabilitation so that you can return to work after an injury or other illness.
FAQ
Who is required to contribute to SOCSO?
Who must register with SOCSO? All persons under a ‘contract of service’ who are employees including temporary or contract workers in the private sector and in the service of the federal or state governments. Employers must also contribute on behalf of their employees.
What sorts of benefits does SOCSO provide?
Invalidity pensions, employment injury benefits, survivors’ benefits, funeral allowances, education benefits and aids to physical and vocational rehabilitation.
How do I know how much I need to contribute to SOCSO?
SOCSO contributions are based on your salary - contribute 0.5% of your monthly salary and your employer contributes 1.25%. The maximum salary subject to contributions is RM6,000.