Social Security Organization (SOCSO)

What is SOCSO in Malaysia?

Malaysia’s Social Security Organization (SOCSO), also known as Pertubuhan Keselamatan Sosial (PERKESO), is a government agency that aims to provide social security and protections to employees in Malaysia as per the Employee’s Social Security Act 1969.

Roles and responsibilities of SOCSO

SOCSO duties include:

Registering employees and their employers
Collecting contributions from both employees and employers
When required, paying benefits to workers and their dependents
Providing vocational and physical rehabilitation benefits
Promoting occupational health and safety awareness

SOCSO’s contributions

SOCSO covers two social security schemes:

The Employment Injury Scheme: To provide protection for employees against occupational accidents and diseases that may occur during employment.
The Invalidity Scheme: This provides protection against invalidity or death due to any cause.

Beginning 1st July 2024, both Malaysian and non-Malaysian employees are covered under these schemes following an announcement by Human Resources Minister Steven Sim.

Who’s eligible for SOCSO’s benefits?

Contribution to SOCSO is compulsory for all Malaysian citizens and permanent residents who are under a contract or apprenticeship in the private sector, as well as contractual or temp staff in the public sector. The rate of contribution is capped at RM6,000 following an increase in the monthly salary ceiling for SOSCO contributions from RM5,000 to RM6,000, effective from 1st October 2024.

This adjustment will enhance cash benefits by 20.2%, benefitting 1.45 million workers and their dependents in the event of occupational accidents, disabilities, demise or job loss. In line with this change, the Employment Insurance System Act 2017 (Act 800) was recently amended to include an increase in employment search allowance, reduced income allowance and early re-employment allowance.

Learn about other payroll terms in Malaysia:

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Disclaimer: The information in this article is current as at 11-Nov-2022, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related corporate bodies (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified, and no warranties are given that it is complete, accurate, up-to-date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.