How Socso works in Malaysia?
| Social Security Organisation (SOCSO), officially known as Pertubuhan Keselamatan Sosial (PERKESO), is an organization that was established in 1971 under the Ministry of Human Resources (formerly known as Ministry of Labor) in order to provide social security protection to employees via social insurance. Protection includes:
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| · medical and cash benefits for any employee who is involved in a work-related accident, commuting accident, or has an occupational disease;
· provision of artificial aids and rehabilitation to employees to reduce the sufferings; and · provision of financial guarantees and protection to the family.
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| SOCSO undertakes to pay, amongst others:
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| · temporarily disability benefits within 7 days of receipt of all required documents;
· permanent disability benefits within 14 days; · funeral expenses within 3 days; and · benefits to families of the deceased within 14 days.
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| 2. Categories of employees covered by SOCSO: SOCSO only covers Malaysian workers and permanent residents earning less than RM2,000 a month, regardless of age or whether their employment status is permanent, temporary, or casual in nature. However, it specifically excludes:
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| · A person whose wages exceed RM2,000 a month, unless they have already been covered before;
· Government employees; · Domestic servants employed to work in a private dwelling house, e.g. house servants, cooks, washer woman, gardeners, or driver; · Employees who have reached the age of 55 (if they continue to work, they should be covered under the Employment Injuries Scheme); · Self-employed persons; and · Foreign workers (they should be covered under the Workmen’s Compensation Act 1952.)
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| 3. SOCSO’s definition of ‘wages’: For the purpose of SOCSO contribution, wages mean all remuneration payable in money to an employee:
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| · salary;
· overtime payment; · commissions and service charge; · payment for leave, whether sick leave, annual leave, rest day, public holidays, maternity, or others; and · allowances, e.g. shift allowance, incentive, housing, food, or cost of living. Payments made to an employee, based on task or piece rate, are also considered as wages.
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| However, the following payments are not considered as wages:
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| · mileage claims;
· payments to the Employees Provident Fund (EPF) or other statutory funds; and · gratuity payments or payments for dismissal or retrenchment; and · annual bonus. |
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This Article Direct from http://malaysiafactbook.com/SOCSO
