 Set up in 1971

Enforce Employees’ Social Security Act
1969
 Protection:
 Medical care
 Cash benefits
 Rehabilitation

 Employers Liability
 Who employs one or more employees – required to register & contribute monthly for all employees
 Employee
 Earns a monthly wage
RM3,000 or less
 More than RM3,000:
 Previously registered, must compulsorily continue
 Not previously registered, can opt to do so.

Concept on socso
 Coverage:
 All employee irrespective of the emplyment status, permanent, temporary etc
 Exemption:
 Government employees
 Domestic servants
 Self employed persons
 Foreign workers

Concept on socso
 AGE:
 Must register irrespective of age
 55 and above wiil continue to be protected (EISe’yer)
 CONTRIBUTION


Employees – 0.5%
(IPS)
Employers – 1.75%
(EIS & IPS)

 EMPLOYMENT INJURY
SCHEME
 Protection for accidents:
 While traveling
 Arising out and in the course of employment
 Occupational disease
 INVALIDITY PENSION
SCHEME




Serious disablement or morbid condition of a permanent nature that is either incurable
Unable to earn at least 1/3 of normal person
24 hours coverage
Against invalidity or death due to any cause not connected with his employment









EIS
Medical benefit
Temporary disablement benefit
Permanent disablement benefit
Constant attendance allowance
Dependant’s benefit
Funeral benefit
Rehabilitation benefit








IPS
Invalidity pension
Invalidity grant
Constant attendance allowance
Survivors pension
Funeral benefits
Rehabilitation
Educational loan

 Medical benefits
 Occupational disease



Treatment at SOCSO panel clinic @ government
Hospital/clinic
Free – socso
Serious injury –
 to nearest government hospital
 2 nd class ward-inpatient
 Temporary disablement benefit
 Unfit for work not less than 4 days
 Only during medical leave
 Daily rate = 80% of daily wage or min
RM10 and max RM52

Employment Injury Scheme
 Permanent disablement benefit
 Cash – certified of permanent disablement



Loss 100% = 90% daily @ min RM10
Loss 20% or less = lump sum payment
Exceed 20% = 1/5 daily rate into lump sum and balance = monthly pension
 Can continue work
 Constant attendance allowance



Permanent total disablement (100% loss0
Severely incapacitated & requires personal attendance of another person
40% of rate total disablement, max RM500

Employment Injury Scheme

Dependant’s benefit
 If employees dies
 90% of the daily wage

Employment Injury Scheme
Widow 3/5 For life until re-marriage wce
Children
Widower
2/5 @
3/5
3/5
Natural/step/adopted/out of wedlock – up to age 21 or marriage. 1 st degree
Wholly depend on wife until remarriage or can support himself wce
Parents 4/10 For life
Grandpare nts
4/10 For life
Brothers & sisters
3/10 Up to age 21 or marriage wce

Employment Injury Scheme
 Funeral benefit
 RM1,500
 As resulted of EI or while receiving disablement benefits
 Next of kin @ person
 WIL
 Rehabilitation benefit
 Facilities for vocational
& physical rehabilitation
 training

Qualifying condition
• Has not completed age 55
• Certified by medical board
• Fulfilled the qualifying condition contribution
 Full qualifying condition



At least 24 months within
40 consecutive months
2/3 = at least 24
50% - 65% of monthly salary
 Reduced qualifying condition


1/3 = at least 24
50%
Minimum RM 250

Invalidity Pension Scheme
 Invalidity grant
 Paid for those who are not qualified for
Invalidity pension
 At least 12 months
 amount of the total contributions
 Outright payment
 Constant attendance allowance
 Recipient of invalidity pension
 40% of the rate invalidity pension
 Max RM500 per month

Invalidity Pension Scheme

Survivor’s pension
 Only if employee dies irrespective of the cause of death
 While receiving invalidity pension
 Not more than 55 years
 Rate:
 Invalidity pension = equal
 If not = 50% - 65%
 Funeral benefits
 While receiving invalidity pension
 Before 55 age
 As EIS

 Increasing cost
 Investment issues
 Efficiency in processing claims
 Pressures from mass media
 Pressures from NGOs
 Migrant workers
 Fraudulent claims