HR Requirements – SOCSO

  1. Who is categorized as an employee under the Employees’ Social Security Act, 1969?

An employee is any person who is employed for wages under a contract of service or apprenticeship with an employer, whether the contract is expressed or implied or is oral or in writing, or in connection with the work of an industry to which the Act applies.

  1. Is it compulsory for temporary employees to be covered under the Employees Social Security Act, 1969?

Yes. Temporary employees must be covered.

  1. What an employer must do to inform PERKESO when an employee resigns?

The employer needs to fill the resignation date and mark ‘x’ in the column provided in Form 8A.

  1. What is the age limit to contribute?

All eligible employees must contribute irrespective of age. Employers shall pay contributions under the first category for employees below the age of 55 years and the second category for employee who have attained 55 years of age. An employee above 50 years of age entering an industry covered by the Act for the first time and has never contributed, will have to pay under the second category.

  1. Is there any penalty imposed to the employer who fails to register/contribute?

An employer can be prosecuted and charged up to RM10,000 or jailed up to 2 years or both.

  1. How are the contribution rates determined?

Contribution rates are based on employee’s wages including overtime, commission, service charge, paid annual leave, sickness, maternity, rest day, public holiday, incentive,subsistence, housing and others. All payments calculated either hourly, daily, weekly, monthly or by task are considered wage. Monthly contribution rates are as shown in the contribution schedule based upon 34 wage category.

  1. What is the rate of the contribution ascertained for an employee who stops work in the middle of the month?

An employer needs to make contribution payment based on the wages paid to the employee for the number of days worked in that month. For example, if salary is paid up to 15 th, then the contribution to be paid is based on 15 working days only.

  1. How an accident can be reported and what are documents needed to make a claim?

An employer shall report to PERKESO by completing the accident report form (Form 21) and submitting it together with a claim form (Form 10), work attendance record, medical leave certificates and a copy of the employee’s national register identity card. If the accident happens while traveling to or from the work place, a police report and sketch map showing the journey taken is also required is mandatory.

  1. Does SOCSO’s finance cost for medical treatment? Where the treatment is available?

Any employee who meets with an accident due to employment or while commuting ( to and from work ) or contracts an occupational disease is eligible for free medical treatment at approved panel clinics or government hospitals. The employee must bring along the accident report form (Form 21) or occupational disease report form ( Form PKS 68 or PKS 69) or a letter from the employer.

  1. Who is eligible for Constant Attendance Allowance?
    This allowance is paid to an employee who suffers total permanent disablement or is severely incapacitated with a 100% loss of earning capacity or certified invalid and constantly requires personal attendance. His need for a care giver must be verified by a Medical Board or Appellate Medical Board. This allowance is equivalent to 40% of permanent disability benefits or invalidity pension and is subject to a maximum rate of RM500 per month (With effective from 1st January 2013 the sum is fixed at RM 500). Payment is made directly to beneficiaries. 
  1. How to process for MBO or medical board out for Permanent Disablement?
    Determining the Question of Permanent Disablement
    Assessment regarding permanent disability of an insured person can only be decided by the following authorities:-
  • Medical Board
  • Specialist Medical Board (for Occupational Disease)
  • Medical Appeal Board (if an Insured Person or SOCSO is not satisfied with the diagnosis made by the medical board Application to refer to Medical Board
  • References to the medical board can be made by the following persons:
    • Insured Person who have completed their medical leave and is permanently disabled
    • Employer
    • Registered Trade Union representative
  • SOCSO is also allowed to refer insured person to the Medical Board if the medical leave is more than 180 days.
  • The time limit for any application to refer to the Medical Board is twelve months from the date of:
    • Last date of temporary disability
    • Employment injury if it does not involve any loss of disablement
    • Decision made by the Social Security Appellate Board to accept and allow the temporary disablement claims made subsequent to SOCSO rejecting such claims

References to Appellate Medical Board
Appeals to the Medical Appellate Board must be made within 90 days from the date of assessment by the Medical Board to the insured person.

Assessment and Payment
Claims will be referred to the Medical Board for permanent disability assessment.

1) If the assessment does not exceed 20%

  • Payment can be made in the form of lump sum.

2) If the assessment exceeds 20%

  • The employee is given an option to commute 1/5 of daily rate of the benefit into a lump sum payment while the balance will be paid monthly for life.
  • However, the option of lump sum payment is subjected to the aggregate loss of earning capacity as a replacement to any lump sum payment not exceeding 20%, if claims were previously made by the insured person

Amendment to Employee’s Social Security Act 1969 effective 1 June 2016

Key highlights of the amendment include:

Amendment to Section 5:

  • 5(1) – Expanding the coverage of the Act to all employees in industries to which the Act applies  irrespective of the amount of wages.
  • 5(2) – If the wages of an employee at any time exceeds  Ringgit Four Thousand (RM4,000) a month, his wages shall for the purposes of this Act be deemed to be RM4,000  a month.

With the above changes to Section 5 of the Act, the First Schedule is amended by deleting paragraph (1) which had previously excluded those who were earning RM3,000 and above per month.

In this regard, effective 1 June 2016:

  • Contributions to SOCSO must be made for all employees including those who had never been  contributing to SOCSO prior to 1 June 2016 because they were earning above the maximum threshold of  RM3,000 and were excluded;

•         Persons described in the revised First Schedule including foreign workers continue to be exempted from contribution.

Socso Table

Gaji(Jenis Pertama)
Bencana Pekerjaan dan Ilat
(Jenis Kedua)*
Bencana Pekerjaan Sahaja
Syer Majikan
(RM)
Syer Pekerja
(RM)
Jumlah Caruman
(RM)
Caruman Majikan
Sahaja
(RM)
Kurang RM300.400.100.500.30
lebih RM30 dan tidak lebih RM500.700.200.900.50
lebih RM50 dan tidak lebih RM701.100.301.400.80
lebih RM70 dan tidak lebih RM1001.500.401.901.10
lebih RM100 dan tidak lebih RM1402.100.602.701.50
lebih RM140 dan tidak lebih RM2002.950.853.802.10
lebih RM200 dan tidak lebih RM3004.351.255.603.10
lebih RM300 dan tidak lebih RM4006.151.757.904.40
lebih RM400 dan tidak lebih RM5007.852.2510.105.60
lebih RM500 dan tidak lebih RM6009.652.7512.406.90
lebih RM600 dan tidak lebih RM70011.353.2514.608.10
lebih RM700 dan tidak lebih RM80013.153.7516.909.40
lebih RM800 dan tidak lebih RM90014.854.2519.1010.60
lebih RM900 dan tidak lebih RM1,00016.654.7521.4011.90
lebih RM1,000 dan tidak lebih RM1,10018.355.2523.6013.10
lebih RM1,100 dan tidak lebih RM1,20020.155.7525.9014.40
lebih RM1,200 dan tidak lebih RM1,30021.856.2528.1015.60
lebih RM1,300 dan tidak lebih RM1,40023.656.7530.4016.90
lebih RM1,400 dan tidak lebih RM1,50025.357.2532.6018.10
lebih RM1,500 dan tidak lebih RM1,60027.157.7534.9019.40
lebih RM1,600 dan tidak lebih RM1,70028.858.2537.1020.60
lebih RM1,700 dan tidak lebih RM1,80030.658.7539.4021.90
lebih RM1,800 dan tidak lebih RM1,90032.359.2541.6023.10
lebih RM1,900 dan tidak lebih RM2,00034.159.7543.9024.40
lebih RM2,000 dan tidak lebih RM2,10035.8510.2546.1025.60
lebih RM2,100 dan tidak lebih RM2,20037.6510.7548.4026.90
lebih RM2,200 dan tidak lebih RM2,30039.3511.2550.6028.10
lebih RM2,300 dan tidak lebih RM2,40041.1511.7552.9029.40
lebih RM2,400 dan tidak lebih RM2,50042.8512.2555.1030.60
lebih RM2,500 dan tidak lebih RM2,60044.6512.7557.4031.90
lebih RM2,600 dan tidak lebih RM2,70046.3513.2559.6033.10
lebih RM2,700 dan tidak lebih RM2,80048.1513.7561.9034.40
lebih RM2,800 dan tidak lebih RM2,90049.8514.2564.1035.60
lebih 2,90051.6514.7566.4036.90