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The Social Security Organization is an organization set up to administer, enforce and implement the Employees' Social Security Act, 1969 and the Employees' Social Security (General) Regulations 1971. The Social Security Organization provides social security protection by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce the sufferings and to provide financial guarantees and protection to the family. SOCSO is the abbreviation for Social Security Organization. It is commonly known in the Malay term as PERKESO or Pertubuhan Keselamatan Sosial. WHO IS COMPULSORY TO CONTRIBUTE TO SOCSO ? 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. 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. Nevertheless, SOCSO does not cover the following categories of persons :

A person whose wages exceed RM3,000 a month and has never been covered before. Government employees. Domestic servants employed to work in a private dwelling house which includes a cook, gardeners, house servants, watchman, washer woman and driver. Employees who have attained the age of 55 only for purposes of invalidity but if they continue to work they should be covered under the Employment Injuries Scheme. Self-employed persons. Foreign workers.

WHAT DO WAGES MEAN FOR THE PURPOSE OF SOCSO CONTRIBUTION ? For the purpose of SOCSO contribution, wages mean all remuneration payable in money to an employee. The following payments are considered as wages :


overtime payment commissions and service charge payment for leave, sick, annual, rest day, public holidays, maternity and others allowances, shift, incentive, housing, food, cost of living and others.

Payments made to an employee paid at an hourly rate, daily rate, weekly rate, task or piece rate are also considered as wages. However, the following payments are not considered as wages :

payments by an employer to any statutory fund for employees mileage claims gratuity payments or payments for dismissal or retrenchment annual bonus.

WHAT IS THE COVERAGE PROVIDED TO AN INSURED PERSON BY SOCSO UNDER ESSA 1969 ? An insured person 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 an insured person who dies as a result of an employment injury Payments for funeral benefit or expense on the death of an insured person as a result of an employment injury Periodical payments to an insured person 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 insured persons suffering from disablement Periodical payments to dependants of an insured person who dies while in receipt of invalidity pension

SOCSO provides coverage to eligible employees through 2 schemes namely

Employment Injury Insurance Scheme Invalidity Pension Scheme.

These schemes are classified into 2 categories :

First Category - Employment Injury Insurance Scheme and Invalidity Pension Scheme. The contribution payment is made by both the employer and employee Second Category - Employment Injury Insurance Scheme Only. The contribution is paid by the employer only. An employee who is not eligible for coverage under the Invalidity Pension Scheme is protected under this category.

These schemes provide the benefits of invalidity pension, invalidity grant, survivors pension, rehabilitation, funeral benefit, constant attendance allowance and educational loan.