SOCSO Compulsory for All Employees from June 1

 

SOCSO is a governmental body which provides medical and financial coverage for employees who are injured in the course of employment or who experience invalidity or whose death is unrelated to employment. 

 

Prior to 1 June 2016, SOCSO contributions were a requirement for individuals earning less than RM 3,000 per month, and optional for those earning more than RM 3,000 per month. 

 

However, from 1 June 2016 onwards with the amendments of the Social Security Employee Act 1969, SOCSO contributions are compulsory for all employees who are Malaysian citizens or permanent residents, regardless of the amount of monthly wages.

 

All employees must be registered and contributed to SOCSO irrespective of the age. However, contribution will be capped at monthly remuneration of RM4,000.

For any employee who are never been protected under SOCSO, the employer must fill the Form 2 (Employee Registration Form) and submit it to the nearest SOCSO Office.

Coverage Provided by SOCSO

SOCSO provides coverage to eligible employees through 2 schemes namely:

  • Employment Injury Insurance Scheme
  • Invalidity Pension Scheme.

These schemes are classified into 2 categories :

  • First Category - Employment Injury Insurance Scheme and Invalidity Pension Scheme. The contribution payment is made by both the employer and employee and is applicable for employees aged below 60.
  • Second Category - Employment Injury Insurance Scheme Only. The contribution is paid by the employer only.

1.      For employees above 60 years of age and still working.

2.      For employees above 55 years of age when first registered and contributed to SOCSO;

3.      For an Insured Person receiving Invalidity Pension who is still working and receiving wages which is less than 1/3 of the average monthly wage before invalidity.

 

 WHAT DO WAGES MEAN FOR THE PURPOSE OF SOCSO CONTRIBUTION?

For the purpose of SOCSO contribution, wages mean all remuneration payable in money to an employee. The following payments are considered as wages :

  • salary
  • overtime payment
  • commissions and service charge
  • payment for leave, sick, annual, rest day, public holidays, maternity and others
  • allowances, shift, incentive, housing, food, cost of living and others.

Payments made to an employee paid at an hourly rate, daily rate, weekly rate, task or piece rate are also considered as wages.

However, the following payments are not considered as wages :

  • payments by an employer to any statutory fund for employees
  • mileage claims
  • gratuity payments or payments for dismissal or retrenchment
  • annual bonus.

  

SOSCO Rate of Contribution  (Effective June 2016)  

Monthly wage

First Category
(Employment Injury Scheme and Invalidity Scheme)

Second Category
(Employment Injury Scheme)

Employer's
Contribution

Employee's
Contribution

Total
Contribution

Contribution by Employer only

1-500

0.40-7.85

0.10-2.25

0.50-10.10

0.30-5.60

501-1000

9.65-16.65

2.75-4.75

12.40-21.40

6.90-11.90

1001-1500

18.35-25.35

5.25-7.25

23.60-32.60

13.10-18.10

1501-2000

27.15-34.15

7.74-9.75

34.90-43.90

19.40-24.40

2001-2500

35.85-42.85

10.25-12.25

46.10-55.10

25.60-30.60

2501-3000

44.65-51.65

12.75-14.75

57.40-66.40

31.90-36.90

3001-3100

53.35

15.25

68.60

38.10

3101-3200

55.15

15.75

70.90

39.40

3201-3300

56.85

16.25

73.10

40.60

3301-3400

58.65

16.75

75.40

41.90

3401-3500

60.35

17.25

77.60

43.10

3501-3600

62.15

17.75

79.90

44.40

3601-3700

63.85

18.25

82.10

45.60

3701-3800

65.65

18.75

84.40

46.90

3801-3900

67.35

19.25

86.60

48.10

3901-4000 and above

69.05

19.75

88.80

49.40

 

 

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