5/3/2021 Your complete guide to everything SOCSO

Your complete guide to everything SOCSO

U P D AT E D 1 0 F E B 2 0 2 1 – B Y L O A N S T R E E T

Would you want your employer to offer a form of protection for not only yourself, but for your family
as well? Would you like to be free from financial disasters if you’re injured, or worse, pass away
due to an accident at work? Believe it or not, understanding what SOCSO is and how to make a
claim can go a long way in helping you. Here’s the information you’d need to know so that you can
make the most out of your SOCSO.

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Overview of SOCSO
SOCSO (Social Security Organization) is also known as PERKESO (Pertubuhan Keselamatan
Sosial), and is a Malaysian government agency established in 1971 under the Ministry of Human
Resources. Under the Employee’s Social Security Act 1969, it is compulsory for all private
companies in Malaysia to register itself with SOCSO in 30 days, from the day the first worker joins
the company.

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5/3/2021 Your complete guide to everything SOCSO

In addition, both parties are responsible to make contributions to SOCSO payments, with
employees committing to the smaller portions depending on their salary (the rate is 0.5% - 3%, and
the contribution is optional for employees earning a salary of above RM3,000 per month).
Employers who don’t register their companies and employees under SOCSO, or don’t make any
contributions, are now standing on the wrong side of the law – they will face steep fines and
possible incarceration.

What is it for?
The purpose of SOCSO is to provide social security protection in the form of cash payments and
benefits to employees in the private sector in the event of workplace injuries, emergencies,
occupational diseases, and even death.
As reported by Bernama, Prime Minister Datuk Seri Najib Tun Razak said that the Government has
allocated RM70mil to fund SOCSO’s financial benefit payments under the Employment Insurance
System (SIP) in 2018.

Who is eligible?
If you are an employee below the age of 60 and hold a private-sector job with a monthly salary, you
are one of the 6.5mil Malaysian registered workers covered by SOCSO schemes. If you belong to
one of the following employee categories, however, you are exempted from the coverage of
SOCSO:
Federal and State Government permanent employees
Domestic servants
Self-employed
Sole proprietor or owners of partnership
Spouse of a sole proprietor or partners
Foreign workers

Available protection schemes and benefits

Generally, SOCSO has two protection schemes for registered members, namely the Employment
Injury Scheme and the Invalidity Pension Scheme.
1) Employment Injury Scheme
According to the SOCSO website, the Employment Injury Scheme “provides protection to an
employee against accident or an occupational disease arising out of and in the course of his
employment”. Under this scheme, it covers industrial and commuting accidents as well as
accidents during emergency, and occupational diseases.
2) Invalidity Pension Scheme
Invalidity Pension Scheme offers 24-hour coverage against invalidity. Invalidity refers to a
morbid condition that is impossible or unlikely to be cured. For examples, people suffering
from malignant cancer, terminal diseases, and stroke, which prohibits them from daily
activities and earning a living.

How do you submit your SOCSO claim?

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5/3/2021 Your complete guide to everything SOCSO

For cases of job-related injuries or death, employees themselves or their family members will want
to get the claim process started as soon as possible. It’s usually the case that the human resource
department of the company that the employee works at will help facilitate the process by pointing
them in the right direction. Therefore, always talk to the company first to get more details.
However, a deeper understanding of the claiming process will help tremendously and reduce the
chances of claims being denied. Here are the important steps you must know to increase your
SOCSO claim success rate:
1) For first-timer applying for medical benefits, compulsory documents for submission are:
Accident report Form 21 or occupational disease report Form PKS 68 or PKS69
Claims form (Form 10)
Employer’s identification letter
Work attendance record
Medical leave certificate
Employee’s identity card (photocopy)
A police report and a sketch map of journey (for accidents happen while traveling to or
from workplace)
Treatments are completely free of charge at SOCSO panel clinics or government hospitals
and clinics, once the application and submission forms are completed.
2) Additional documents are needed to receive reimbursement for non-SOCSO panel
treatments. The documents must be filled and submitted to the employee’s local SOCSO
office, and the rate of reimbursement will be determined by SOCSO. These extra documents
are:
Reimbursement Travel Claims Form – Form PKS (P) 24
Reimbursement Payment Claim Report (general) – Form PKS (P) 26
Receipt of treatment (original)
Appointment card (photocopy)
Medical report, if any (photocopy)
3) It is very important to know that once a doctor proves and certifies an employee is unfit to
work for a minimum of 4 days (including the day of workplace accident), he or she will be
qualified for temporary disablement benefit. It means the employee will receive monetary
payment during the period when he or she is unable to work.
4) When employees suffer from permanent disabilities due to workplace accidents,
regardless his/her ability to work, they can claim for permanent disablement benefits. They
must make a written application at the SOCSO office with the medical board’s reference.
Mandatory documents to bring along for this claim are:
Medical report for a hospital or a clinic where the employee was treated
Application form

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5/3/2021 Your complete guide to everything SOCSO

Identity card (photocopy)

Claim form (Form 10)
Form PKS (F) 1 with SOCSO contribution details and salary statement
Employee’s account details for direct deposit of benefits
The benefit rate is 90% of his/her daily wages, ranging from a minimum of RM10 to RM88.50
per day.
Employees can choose to work while receiving the permanent disability benefit. How the
benefits are paid depends solely on the decision of the Medical Board. If employees are not
convinced with the arrangement, they can file an appeal to the Medical Appeal Board within
90 days, beginning from the date of notification.
5) Last but not least, employees are entitled to receive constant attendance allowance if they
have lost 100% of their ability to work and earn, as a result of workplace accidents. In other
words, they are the ones who are invalid or suffer total permanent disability, and certified by
the Medical Board in Malaysia.
Employees will receive the allowance (40% of total salary, with a cap of RM500/month)
directly.

Why is understanding SOCSO important?

The risks are real. SOCSO helps employees and their families who have encountered the loss of
income due to injury or death. If you are serious about protecting you and your loved one’s future
against potential risks, you need to understand how these benefits work and when they’re
applicable.
Besides that, with more people having access to this information, they’re able to educate others,
especially new graduates and labour workers who lack the awareness of SOCSO’s critical role –
you’ll be amazed how many there are.

Facts and updates you may want to know

Now there is no time limit to apply and claim SOCSO benefits as long as employees fulfill the
necessary requirements.
SOCSO is claimable during a meal break at work too.
Three-month RM600 cash allowance per month for unemployed Malaysians under
the Employment Insurance Scheme (EIS).

To conclude
With medical costs on the rise in Malaysia, taking full advantage of SOCSO is highly recommended
even if it does involve a considerable amount of time and paperwork. For more information and
updates, you can visit SOCSO official website or read our article 5 Things You Should Know About
SOCSO!

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