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|Legal Subjects > Employment Law > Social Security Organization|
HOW DOES AN EMPLOYER REGISTER AN EMPLOYEE WITH SOCSO ?
Employers are required to fill Employer Registration Form 1 and Employee Registration Form 2 for registration with SOCSO. Employer must fill both forms neatly providing complete details in a legible manner. A copy of the trading, business or company license has to be enclosed.
The name of an employee has to be as per Identity Card. Both the new and old Identity Card numbers of the employee have to be entered. Thereafter, the duly filled forms and relevant documents should be sent to the SOCSO local Office which will then issue the employer with an employer's Code Number within 1 month. This number will be used in all correspondence with SOCSO.
Contributions should be made from the first month an employee is employed.
Contributions can be made through appointed banks or through post offices in Sabah and Sarawak only. The detail records of contributions to SOCSO can be sent using
IS THERE ANY INTEREST ON CONTRIBUTIONS DUE AND NOT PAID ON TIME BY EMPLOYER ?
Where an employer fails to pay contributions within the required period, such employer shall be liable to pay interest as specified under regulation 33 of the Employees Social Security (General) Regulations 1971.
Interest payable will be calculated at the rate of 6% per annum in respect of each day of default or delay beyond the end of such period, subject to a minimum payment of RM5.
WHAT ABOUT AN EMPLOYEE WITH MONTHLY WAGES EXCEEDING RM2,000 ?
Where an employee's monthly wages exceed RM2,000, such employee will falls into either of the situation :
Where an employee has been registered previously and contributed to SOCSO, such employee must compulsorily continue to contribute even though the present wage exceeds RM2,000 per month. This will be in line with the principle of "once covered always covered" to preserve the employee's rights accumulated under the Invalidity Pension Scheme.
Where an employee has not been registered previously and has been receiving a monthly wage exceeding RM2,000, such employee may opt to be covered under the Act. If an employee opts to be covered, both the employer and employee have to consent to the coverage by filling the necessary form.