Imagine this:
You’re at work, and your colleague suddenly slips while walking to the pantry. She needs medical attention and has to take several weeks off to recover. Questions start flying around — Who will pay for her treatment? Will she still get her salary? This is when SOCSO (PERKESO) comes into play, offering financial protection and benefits to employees in Malaysia.

This is why it’s not enough to just know SOCSO exists; employers must also understand the types of SOCSO claims and ensure contributions and records are properly maintained. With an HR system like Pandahrms, you can automatically handle SOCSO deductions in payroll, store contribution history, and generate reports whenever needed — saving you from messy manual work and last-minute panic.

What is SOCSO (PERKESO)?

The Social Security Organisation (SOCSO), or PERKESO, provides financial protection to employees in Malaysia for work-related accidents, occupational diseases, invalidity, and death.
Employers are responsible for:

• Registering employees with SOCSO

• Making monthly SOCSO contributions (employer & employee portions)

• Submitting accurate wage and contribution records

Missing a contribution can cause issues when employees file claims — which is why accurate payroll processing is crucial.

The 10 Types of SOCSO Claims in Malaysia

Here’s a breakdown of the main types of claims, who they apply to, and what they cover.

1. Temporary Disablement Benefit (Faedah Hilang Upaya Sementara)

• When it applies: For employees temporarily unable to work due to work-related injury or illness.

• Benefit: Daily cash allowance until you recover and can return to work.

• Example: Injuring your arm during a machine operation and needing a few weeks of rest.

2. Permanent Disablement Benefit (Faedah Hilang Upaya Kekal)

• When it applies: For permanent loss of function or ability due to a workplace accident.

• Benefit: Monthly pension or lump sum payment based on disability percentage.

• Example: Permanent hearing loss from prolonged exposure to loud machinery.

3. Dependants’ Benefit (Faedah Orang Tanggungan)

• When it applies: Paid to dependants if an employee dies due to a work-related accident or occupational disease.

• Benefit: Monthly pension for spouse, children, or other eligible dependants.

• Example: A family receiving support after the breadwinner passes away in a workplace accident.

4. Funeral Benefit (Faedah Pengurusan Mayat)

• When it applies: Death due to work-related causes.

• Benefit: Lump sum to help cover funeral expenses.

• Example: Immediate financial aid to arrange funeral rites.

5. Education Benefit (Faedah Pendidikan)

• When it applies: For children of employees receiving Dependants’ Benefit or Permanent Disablement Benefit.

• Benefit: Education fees, allowances, and living expenses.

• Example: Covering university tuition for a deceased employee’s child.

6. Medical Benefit (Faedah Perubatan)

• When it applies: Medical treatment for work-related injuries or occupational diseases.

• Benefit: Covers hospitalisation, surgery, medicine, and follow-up treatments.

• Example: Surgery costs for a broken leg sustained while working.

7. Rehabilitation Benefit (Faedah Pemulihan)

• When it applies: Rehabilitation services for injured employees.

• Benefit: Physiotherapy, vocational training, or prosthetic devices.

• Example: Providing a prosthetic limb to help an injured employee return to work.

8. Constant Attendance Allowance (Elaun Layan Sentiasa)

• When it applies: For employees who are permanently disabled and need constant care.

• Benefit: Monthly allowance in addition to Permanent Disablement Benefit.

• Example: An employee requiring a caregiver due to paralysis after an accident.

9. Invalidity Pension (Pencen Ilat)

• When it applies: For employees who can no longer work due to illness or disability not caused by the workplace.

• Benefit: Monthly pension until recovery, retirement, or death.

• Example: A worker diagnosed with a severe illness unrelated to work but unable to continue working.

10. Invalidity Grant (Geran Ilat)

• When it applies: For employees who are invalid but do not qualify for the Invalidity Pension (usually due to insufficient contributions).

• Benefit: One-off lump sum payment.

• Example: Early support for a worker who developed a serious health condition before meeting pension eligibility.

How Pandahrms Helps Employers with SOCSO Responsibilities

Handling SOCSO is more than just deducting the right amount from salaries — it’s about keeping contributions timely, accurate, and properly recorded. Here’s how Pandahrms can help:

✅ Automatic SOCSO Payroll Deductions

• No more manual calculations — Pandahrms automatically applies the correct SOCSO rate based on employee wages.

✅ Up-to-Date Contribution Records

• Keeps a complete history of contributions so you can easily check if payments are current when an employee makes a claim.

✅ SOCSO Payroll Reports

• Generate monthly SOCSO reports in just a few clicks, ready for submission to PERKESO.

✅ Compliance Assurance

• Reduces the risk of late or incorrect payments, helping ensure employee claims are processed without delay.

✅ Employee Information Management

• Stores personal details, next-of-kin information, and salary history needed for certain claim types.

Why This Matters

Understanding the 10 types of SOCSO claims isn’t just trivia — it’s the difference between a smooth claim process and a costly delay. For employees, it means getting the benefits they deserve without unnecessary stress. For employers, it means avoiding the nightmare of rejections because contributions weren’t up to date or records were missing. That’s where Pandahrms changes the game: it records every workplace incident, tracks sick leave automatically, and stores all SOCSO deductions, payments, and reports in one secure place — ready to submit the moment you need them.