Lawyerment Quick Link - Homepage - Free Email - Message Boards - LawCrawler - Legal News - Legal Dictionary - Lawyers Jokes - Lawyers Directory - Newsletters - Legal Guide - Refer A Friend - Interesting Facts - Library - Downloads - >> more
|Legal Subjects > Employment Law > Social Security Organization|
WHAT IS THE RATE OF SOCSO CONTRIBUTION ?
The principal employer must make a monthly contribution for each eligible employee according to the rates specified under the Act.
The employer pays 1.75% for the Employment Injury Insurance Scheme and the Invalidity Pension Scheme while the employee's share of 0.5% of wages should be paid for coverage under the Invalidity Pension Scheme.
The rate of contribution is based on the monthly wage of the employee in accordance to 24 categories.
WHAT ARE THE RESPONSIBILITIES OF AN EMPLOYER ?
An employer must cover their employees even if the employees have other private insurance coverage.
A company or firm with one or more employees whose individual earnings do not exceed RM1,000 a month has to register with SOCSO. The contributions for such employees are borne solely by the employer.
Where an employee reached the age of 55 and continues to be employed after that age, only the employer shall contribute to SOCSO for such employees.
Under the Employees' Social Security 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.
It is the liability of the principal employer to ensure all employees employed by the immediate employer have been registered and their contributions have been paid.
Under the Employees' Social Security Act 1969, the principal employer will be liable, in the event the employees have not been registered and the immediate employer cannot be located.