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|Legal Subjects > Employment Law > Social Security Organization|
WHAT IS SOCIAL SECURITY ORGANIZATION ?
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 :
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 :
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 :
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 :
SOCSO provides coverage to eligible employees through 2 schemes namely
These schemes are classified into 2 categories :
These schemes provide the benefits of invalidity pension, invalidity grant, survivors pension, rehabilitation, funeral benefit, constant attendance allowance and educational loan.