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:
Federal and State Government permanent employees
Expenses to be deducted from Socso
Payment for unutilized annual or medical leave
Arrears of wages
Wages for maternity/ Study/ Half day leave
Other payments under services contract or otherwise
Expenses not required to deduct Socso
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.