Employee Social Security Act

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  • Topic: Employment, Insurance, Social Security
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  • Published : January 13, 2013
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THE EMPLOYEES’ SOCIAL SECURITY ACT 1969 (“SOCSO”)

WHAT IS SOCSO?
 It is an organization set up to administer, enforce and implement the Employees' Social

Security Act, 1969 and the Employees' Social Security (General) Regulations 1971.

WHAT IS IT IMPORTANT?
 It provides social security protection by social insurance

including:
• • • • medical and cash benefits, provision of artificial aids, rehabilitation to employees to reduce the sufferings, provide financial guarantees and protection to the family.

C O M P U LS ORY C O NT R IBU T IO N
 An employee employed under a contract of service or apprenticeship and earning a monthly wages of RM3,000 and below must compulsorily register and contribute to SOCSO regardless of the employment status whether it is permanent, temporary or casual in nature. (See: Section 2 First Schedule of the Act)   An employee must be registered with the SOCSO irrespective of the age. SOCSO only covers Malaysian workers and permanent residents. As a result, foreign workers are protected under the Workmen's Compensation Act

1952.

W H O A R E C OV E R E D U N D E R THE ACT?

• The Act is applicable to all industries having with one or more employees. (Section 3(1) of the Act)

LIMITATION
SOCSO does not cover the following categories of persons :

    

Employee earning wages more than RM3,000 a month and has never been covered before. Government employees. Domestic servants (i.e: a cook, gardeners, house servants, driver etc) Employees who have attained the age of 55 only for purposes of invalidity Self-employed persons. Foreign workers. (Section 2 of the First Schedule)

CONTRIBUTIONS
 Who are responsible to pay the employer’s and
employee’s contributions? • Principal Employer  responsible to pay both the employer’s contribution of every employee, whether directly employed by him or through an immediate employer • Immediate Employer  The principal employer could recover the amount of...
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