Most of us as employee in Malaysia contribute to SOCSO (Social Security Organisation) a.k.a. PERKESO (Pertubuhan Keselamatan Social) every month. SOCSO contribution is deducted from our salary by our employer in a similar way to EPF a.k.a. KWSP contribution. Also similar to EPF, our employer is also required to contribute to our SOCSO account in addition to our own contribution, and the employer's portion is larger than the employee's.
In fact, under the current Employee’s Security Act, SOCSO contribution is compulsory for all Malaysian employee with monthly salary less than RM3,000. It is optional for those with starting salary above RM3,000. Under the "once in always in" principal, once we become a SOCSO member and contributed to SOCSO, we will continue to be member even though our salary increased to above RM3,000 later.
This salary ceiling of RM3,000 for SOCSO contribution was revised from the previous ceiling of RM2,000 on 10 September 2003 by the Malaysian Cabinet with amendments made to Act.
Foreign workers are not covered by SOCSO. They are protected under a separate Workmen's Compensation Act 1952 instead.
Currently, our MyKad identity number is also used as our SOCSO membership number.
So what are the benefits of being a SOCSO member?
There are 2 types of protection scheme for SOCSO members, namely the Employment Injury Insurance Scheme and the Invalidity Pension Scheme.
The Employment Injury Insurance Scheme provides protection to employees who are involved in accidents arising from out of employment, occupational diseases and also commuting accident, while the Invalidity Pension Scheme provides 24 hours coverage for workers from invalidity or dies irrespective of the cause of death.
Employees with age below 55 are covered under both the 2 schemes, and those above 55 are covered under the Employment Injury Insurance Scheme.
A SOCSO member or dependants will be entitled to the following benefits :
- Periodical payments in the case of invalidity.
- Periodical payments in the case of disablement suffered as a result of an employment injury.
- Periodical payments to the dependants of member who dies as a result of an employment injury.
- Payments for funeral benefit or expense on the death of member as a result of an employment injury.
- Periodical payments to member who is in receipt of invalidity pension or disablement benefit and is so severely incapacitated or disabled as to require the personal attendance of another person.
- Medical treatments for the attendance on member suffering from disablement.
- Periodical payments to dependants of member who dies while in receipt of invalidity pension.