Pertubuhan Keselamatan Sosial (Perkeso) or Social Security Organisation (SOCSO) is a Malaysian government agency that was established to provide social security protection to Malaysian employees under the Employees’ Social Security Act, 1969.
Every employer who employs one or more employees is required to register and contribute monthly to SOCSO.
SOCSO covers employees who are Malaysian citizens and permanent residents only. Foreign workers are covered under the Workmen’s Compensation Act 1952.
SOCSO provides social security protection by social insurance.
Some of the benefits are medical and cash benefits, provision of artificial aids, rehabilitation, funeral benefits, etc.
There are a couple of schemes :
Employment Injury Insurance Scheme
This scheme provides protection for accidents during or after working hours.
It also covers Occupational Disease such as loss of hearing due to nature of work.
Invalidity Pension Scheme
Provides coverage for:
- 24 hour coverage against invalidity (conditions that are unlikely to be cured),
- Death due to any cause before the age of 55
- Education benefit
Education loan for certificate/diploma/degree courses at local institutions for the dependent children of SOCSO members who are receiving monthly payment.
Who must register?
Employers
Any business who has one or more employees is required to register with SOCSO, and must do so within 30 days of hiring their first employee. An employer can register by completing Borang 1 and submitting it together with relevant documentation.
Employees
Employees (permanent, temporary or casual) employed under a contract of service or apprenticeship and earning RM3,000 or less are also required to register. The employee registers through the employer who completes the Borang 2 and submits it to the nearest SOCSO office.
Voluntary registration
Employees earning more than RM3,000 and have never registered with SOCSO, may opt to contribute.
Update: The RM3,000.00 ceiling has since been increased to RM4,000.00 from July 2016.
However, both the employer and employee must agree as both will have to contribute accordingly.
If both parties agree to contribute, then submit 3 copies of the Notice of Election and Form 2 to the SOCSO office.
De-registration
If an employer ceases to have employees and wishes to de-register, they should complete and submit Borang 1A.
Under the principle Of “Once In Always In”, an employee who is registered with SOCSO, is required to continue contributing to SOCSO irrespective of the amount of monthly wages, i.e. even if it exceeds the ceiling.
Who must contribute?
Both the employer and employee are required to contribute based on the table provided by SOCSO. An employer must deduct an employees portion when paying salaries and add the employer’s portion to it.
Contribution Rates
A table of SOCSO contribution rates can be found here – Rate Of Contributions
How, when and where to make payments
An employer must complete Borang 8A and submit this together with the payment to a SOCSO office, or can choose to pay through one of several banks. The payment and form should be submitted by the end of the following month.
Checking status of contribution
Employers and employees can check the status of their contributions by visiting SOCSO’s online portal at Semakan status pendaftaran majikan dan pekerja.