Understanding the obligations and benefits of SOCSO contributions is crucial for employers in Malaysia. The Social Security Organization (SOCSO), also known as PERKESO (Pertubuhan Keselamatan Sosial), provides social security protection to Malaysian employees through various schemes.  

What is SOCSO?

SOCSO, established in 1971, is a government agency under the Ministry of Human Resources. It administers social security schemes aimed at providing financial assistance to employees in the event of workplace injuries, occupational diseases, invalidity, and death. SOCSO’s main schemes include the Employment Injury and Invalidity Scheme and the Employment Injury Scheme.

Why SOCSO Contributions Matter

SOCSO contributions are vital for ensuring the well-being and financial security of employees. These contributions fund benefits such as medical treatment, temporary and permanent disablement benefits, constant attendance allowance, rehabilitation benefits, and funeral expenses. For employers, contributing to SOCSO helps create a safer and more secure working environment, fostering employee loyalty and satisfaction.

Employer Responsibilities

Employers are required to register their businesses with SOCSO, while employees are automatically covered by social security protection upon employment.

• Registration: Employer and its employees must be registered with SOCSO not later than 30 days on which the Act becomes applicable to the industry.
• Contribution Payments: Employers are responsible for deducting the employee’s share from their wages and adding their own share before submitting the total contribution to SOCSO.
• Record Keeping: Employers must maintain accurate records of their employees’ wages and SOCSO contributions. These records should be kept for a minimum of seven years.
• Submission of Forms: Employers must submit the relevant forms and documents, such as the Form 8A (Employer’s Monthly Contribution Form), to SOCSO.

2 Types of  Insurance Scheme from Social Security Organization (SOCSO)

Contributions of First Category The employment injury scheme which provides coverage for workplace accidents and the invalidity scheme which provides coverage to employees who suffer from invalidity or death due to any cause not related to their employment. This is for employees who are less than 60 years of age. The rate of contribution comprises:

• 1.75% of employer’s share based on employee’s monthly wages
• 0.5% of employee’s monthly wages

Contributions of Second Category The employment injury scheme which provides coverage for workplace accidents. The rate of contribution under this category is 1.25% of employees’ monthly wages that it is paid entirely by employer only.  

What Are The Available Benefits of SOCSO?

SOCSO is divided into two protection schemes for registered members. 1. Employment Injury Scheme Based on the SOCSO website, this scheme provides security and protection to employees against accidents or occupational hazards/diseases caused by or during the duration of their employment. The Employment Injury Scheme covers industrial and commuting accidents, accidents during emergencies and occupational diseases. These are the benefits offered by this particular scheme:

• Medical benefit
• Temporary disablement benefit
• Permanent disablement benefit
• Constant attendance allowance
• Facilities for physical and vocational rehabilitation
• Return to work program
• Dependents’ benefit
• Funeral benefit
• Education benefit

2. Invalidity Pension Scheme The Invalidity Pension Scheme provides 24-hour coverage against invalidity. A morbid condition that is impossible or unlikely to recover is considered invalid. Some examples include cancer, terminal diseases and stroke, which prevent them from earning a living. These are the benefits offered by this scheme:

• Invalidity pension
• Invalidity grant
• Constance’s attendance allowance
• Survivors’ pension
• Funeral benefit
• Facilities for physical or vocational rehabilitation and dialysis
• Return to work program
• Education benefit

How Do You Submit Your SOCSO Claim?

In cases of job-related injuries or death, employees or their family members will want to initiate the claim process promptly. Typically, the company’s human resources department will assist by guiding them through the process. It is essential to consult with the company first for detailed information. However, having a thorough understanding of the claiming process can significantly improve the chances of a successful claim and minimize the risk of denial. Here are the key steps you need to know to enhance your SOCSO claim success rate: 1) For first-timer applying for medical benefits, compulsory documents for submission are:

• Accident report Form 21 or occupational disease report Form PKS 68 or PKS69
• Claims form (Form 10)
• Employer’s identification letter
• Work attendance record
• Medical leave certificate
• Employee’s identity card (photocopy)
• A police report and a sketch map of journey (for accidents happen while traveling to or from workplace)

Treatments are completely free of charge at SOCSO panel clinics or government hospitals and clinics, once the application and submission forms are completed. 2) Additional documents are needed to receive reimbursement for non-SOCSO panel treatments. The documents must be filled and submitted to the employee’s local SOCSO office, and the rate of reimbursement will be determined by SOCSO. These extra documents are:

• Reimbursement Travel Claims Form – Form PKS (P) 24
• Reimbursement Payment Claim Report (general) – Form PKS (P) 26
• Receipt of treatment (original)
• Appointment card (photocopy)
• Medical report, if any (photocopy)

Conclusion Understanding SOCSO employer contributions is crucial for employers in Malaysia to fulfill their legal obligations and provide essential social security protection to their employees. By contributing diligently to the SOCSO fund, employers show their commitment to safeguarding the welfare of their workforce during challenging times.