The Invalidity Pension Scheme of SOCSO

The Invalidity Pension Scheme of SOCSO provides a 24-hours coverage to employees against invalidity and death due to any cause not connected with employment before the age of 55 years.

"Invalidity" means a serious disease or disablement of a permanent nature that is either incurable or not likely to be cured, as a result of which an employee is unable to earn at least 1/3 of what a normally able person could earn. Heart attack, kidney failure, cancer, mental illness, chronic asthma and other similar conditions are chronic ailments or diseases that could be considered for invalidity.

The benefits provided include:

• Invalidity Pension - this is only eligible for SOCSO members who contributed for more than 24 months, subjected to additional terms and conditions.
• Invalidity Grant - this is an outright payment paid to worker or employee who does not qualify for the Invalidity Pension but has made at least 12 monthly contributions to SOCSO.
• Survivors Pension - where an employee dies while receiving Invalidity Pension irrespective of his age, or has not reached the age of 55 years and met the conditions for receiving Invalidity Pension, irrespective of the cause of death, the dependants will be paid Survivors Pension.
• Funeral Benefit - this benefit is paid to the eligible next-of-kind if an employee dies while receiving Invalidity Pension, or has not reached the age of 55 years and met the conditions for receiving Invalidity Pension.
• Rehabilitation Benefit - an employer who suffers invalidity is also entitled to receive Rehabilitation Benefit as provided under the Employment Insurance Injury Scheme.

The Employment Injury Insurance Scheme of SOCSO

The Employment Injury Insurance Scheme of SOCSO provides protection to employees who suffer from accidents arising from work.

Its coverage includes:

• Commuting accident while travelling to and from work, and while travelling to and from place for taking meals during work, and also during business journey related to work.
• Accident that happens while performing official duty.
• Occupational diseases due to hazards by the nature of work and those listed in the Fifth Schedule of the Employees' Social Security Act 1969.

The benefits provided include:

• Medical benefit - free treatment under the coverage at a SOCSO Panel Clinic or any government hospital or clinic. Reimbursement for medical expenditure incurred at a non SOCSO Panel Clinic may only be submitted for consideration.
• Temporary Disablement Benefit - employee who has been certified by a doctor to be unfit for work for not less than 4 days including the day of the accident is eligible for this benefit. This benefit will be paid for the period the employee is on medical leave.
• Permanent Disablement Benefit - employee who has been certified by a Medical Board or an Appellate Medical Board to be suffering from permanent disablement as a result of an employment injury is eligible for this benefit. The employee may continue to work while receiving this benefit.
• Constant Attendance Allowance - this allowance is paid to an employee who is suffering from permanent total disablement or 100% loss of earnings capacity, and is so severely incapacitated that he constantly requires the personal attendance of another person.
• Funeral Benefits - where an employee dies as a result of an employment injury or while receiving disablement benefit, an amount of RM1,500 will be paid to the eligible next-of-kin.
• Rehabilitation Benefit - SOCSO provides facilities for vocational and physical rehabilitation free of charge to employee who suffers from permanent disablement.
• Dependant's Benefit - Where an employee dies as a result of an employment injury, the dependants are entitled to this benefit.
• Education Benefit - this benefit comes in the form of a loan or scholarship given to dependant children of an insured employee who is in receipt of a monthly benefit, provided that the dependent children fulfil the eligibility conditions set by SOCSO.

About SOCSO a.k.a. PERKESO

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.