Employee Social Security Act
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
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