Employees are exposed to accidents everyday at work

Social Security Organisation (SOCSO) is an organisation set up to administer, enforce and implement the Employees’ Social Security Act 1969 and the Employees’ Social Security (General) Regulations 1971.

Under these laws, SOCSO provides social security protection by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce their sufferings and provide financial guarantees and protection to the family.

Who is liable to contribute to the SOCSO?

A firm with a minimum of one staff earning less than RM2,000.00 per month must register with SOCSO. For those earning more than RM2,000.00 per month, registration is optional.

Categories of Employees NOT Covered by the SOCSO Act 1969

a. Those earning more than RM2,000.00 per month
b. Casual workers
c. Domestic servants
d. Foreign workers
e. Government servants
f. Self employed
g. An employee aged 55 years
and above
h. Attributer
i. Spouse(s) of principal or immediate employer
j. Members of the armed forces
k. Police officer
l. A person detained in
prison, mental hospital or detention camp

Under SOCSO insurance, an employee or their dependants will be entitled to the following benefits:

- monthly payments for invalidity
- monthly payments for disablement suffered as a result of an employment injury
- monthly payments to the dependants of an insured person who died due to employment injury
- payments for funeral expense of an insured person as a result of an employment injury
- monthly payments to an insured person who, apart from receiving the invalidity pension or disablement benefit, needs constant attendance of another person due to the severity of his condition.
- medical treatment needed for his disablement
- payments to dependants of an insured person who dies while receiving invalidity pension.

SOCSO Coverage Schemes

SOCSO provides two schemes to employees under its coverage :

1. Invalidity Pension Scheme
2. Employment Injury Insurance Scheme

1. Invalidity Pension Scheme - coverage and benefits

Invalidity scheme provides a 24-hour coverage to employees against invalidity and death due to any cause not connected with employment before the age of 55 years.

Under this scheme, the benefits provided included Invalidity Pension, Invalidity Grant, Constant Attendance Allowance, Survivors Pension, Funeral Benefit, Rehabilitation and Educational loan:

Invalidity Pension

For this purpose, invalidity means a serious disease or permanent disability which results in the person’s inability to earn at least 1/3 of what a normally able person could earn. Chronic diseases including heart attacks, kidney failure, mental illness could be considered for invalidity.

Invalidity grant

Invalidity grant is a payment paid to workers who do not qualify for Invalidity Pension but have made at least 12 monthly contributions.

The amount is equivalent to the total amount of contributions paid by the employee and employer for the Invalidity Pension Scheme including interests.

Funeral Benefit

The benefit is paid to the eligible next-of-kin if an employee dies while receiving Invalidity pension or before reaching the age of 55 but meets the full or reduced qualifying contributions conditions.

Rehabilitation Benefit

An employer who suffers invalidity is also entitled to receive Rehabilitation Benefit as provided under the Employment Injury Scheme
(For conditions eligible for this benefit, please contact the nearest SOCSO office for information).

2. Employment Injury Insurance Scheme

This scheme provides coverage for accidents that occur while:

- Travelling (Commuting accident)
- Travelling on a route between the place where the employee takes meals during any authorised recess
- while travelling on a journey directly connected to work
- arising out and in the course of employment
- accidents that happens while performing official duty at the work place which arises out of the employment.

Medical Benefits

Employees who contract any occupational diseases or meet an accident are entitled to get treatment from any SOCSO panel Clinic or any government hospital or clinic. The benefit will include reimbursement of medical bills and continued treatment at SOCSO approved clinics.

Temporary Disablement Benefit

This benefit is for employees who are certified by the doctor to be unfit for work for not less than 4 days. The benefit to be paid is 8% of his daily wage or RM10 per day, whichever is higher.

Life has to go on despite any misfortunes	Physiotherapy can be expensive. SOCSO can help to cover the cost

Permanent Disablement Benefit

This benefit is given to an employee who suffers from permanent disability resulting from a work related accident and is certified by a medical Board or an Appellate Medical Board. If he is assessed to be 100% disabled with complete loss of earning ability, then he is entitled to 90% of the average daily wage or minimum RM10.

If his disability is assessed at 20% or less, then he will receive a lump sum but if it exceeds 20%, the employee has an option to convert 1/5 of the permanent benefits in lump sum and the rest to be paid as monthly pension for life.

Constant Attendance Allowance

This allowance is paid to an employee suffering from permanent total disablement or 100% loss of earning capacity and because of the severity of his condition would require constant attendance of another person. This allowance is 40% of his permanent total disablement benefit or RM500, whichever is lower.

Funeral benefits

When an employee dies during work or while receiving the permanent disability benefits, an amount of RM1,500 or actual cost (whichever is lower) will be paid to cover funeral costs. The payment is made to the person who incurred the funeral costs.

Rehabilitation Benefit

SOCSO provides facilities for vocational and physical rehabilitation to employees with permanent disability. This includes physio-therapy, occupational therapy, reconstructive surgery, supply of artificial limbs, prosthetic equipment etc.

SOCSO will also bear the cost of employee who wishes to undergo vocational training.

Dependent benefits

This benefit is given to the dependants of an employee who dies as a result of employment injury. The benefit is given a minimum rate of RM10 or 90% of the average daily rate.

This benefit can be given to widow, widower, children or step children, parents, grandparents or siblings of the deceased. The share of full daily rate are either 2/5, 3/5 or 4/10 depending on who the dependants are. Generally, a widow loses this benefit upon remarriage and the children will continue to receive it until one of the following occurs : when they reach 21 years of age, when they marry or upon completion of their first degree for those pursuing tertiary education.

A widower may also claim the benefit if proven that he is mainly dependent on his wife’s income before her death or could not earn enough to support himself.

If there are no direct dependants, the benefits will be given either to the parents, or grandparent (if parents are deceased) or siblings if both the parents and grandparents have died.

SOCSO is an employee’s security against occupational accidents or diseases which could rob a person of his full ability to earn an income. Its main objective is to provide a guarantee and protection for the employees and their dependants to ease their sufferings during such times. All employers must cover their employee even if the employee has other insurance coverage. The employee who continues to be employed after the age of 55 will still be covered by SOCSO. Under the Employment Act 1969, it is the duty of an employer to make contribution to the SOCSO on behalf of the employees to insure them against employment injury and the contingencies of invalidity.

Nursing care may be required after an accident	An employee is able to claim permitted allowance to undergo treatment