SOCSO – Social Security Organization
What is Socso?
- It is an insurance for employees
- The Social Insurance Organization (SOCSO) provides medical treatment, cash compensation, prosthetics and rehabilitation training. The social insurance agency provides two insurance plans, namely the work-related injury insurance plan and the disability pension insurance plan.
- The purpose of these two plans is to ensure that employees and their families have sufficient cash and benefits to face emergencies
Who should contribute to Socso?
Employers are required to make contributions to the Social Insurance Organization (SOCSO) under a contract of service or apprenticeship, which include:
- Full-time, Part-time and Probationary employees
- Director Salary paid by the company
- Employees outsourced to third parties
- Legal foreign worker
Except for individuals that are:
- Domestic servants
- Federal and State Government permanent employees
- Self-employed
Expenses to be deducted from Socso
- Salary
- Payment for unutilized annual or medical leave
- Incentive
- Arrears of wages
- Wages for maternity/ Study/ Half day leave
- Other payments under services contract or otherwise
- Overtime payment
- Service charges
- Allowance
- Commission
Expenses not required to deduct Socso
- Director’s fee
- Bonus
- Retirement benefits
- Gratuity (payment to employee payable at the end of a service period or upon voluntary resignation)
- Retrenchment, temporary and lay-off termination benefits
- Traveling allowance or the value of any traveling concession
- Payment in lieu of notice of termination of employment •Special Expense (Claims)
- Benefits in Kinds
- Gifts, including cash payments for holidays like Hari Raya, Christmas, etc.
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