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CHAPTER 6: THE LAWS RELATING TO SOCIAL SECURITY - Coggle Diagram
CHAPTER 6: THE LAWS RELATING TO SOCIAL SECURITY
Employees Provident Fund Act, 1991
Purposes
to ensure employees have sufficient funds for their old age, once they have retired :
to ensure employees and family members have enough money when they are too old to work
to ensure that people are not destitute during old age
Persons Obligated to Make EPF Contribution
directors who receive wage
part time, temporary and probationary employees
employees contribute until age of 75 years old if they still working regardless whether they have/ have not made the full withdrawal after attaining the age of 55 years old
employees who are 55 years and above, and never been member of the EPF
employees who have withdrawn their savings, work with employers other than the Federal/ State Governments/ any statutory bodies/ local authorities
employees who have previously made full withdrawal under the Incapacitation Withdrawal and have recovered and re-employed in any service
Payments That Are Liable For EPF Contribution
salary
payment for unutilised annual/ medical leave
bonus
allowance
commission
incentive
arrears of wages
wages of maternity leaves, half day leave, for study
other payments under services contract/ otherwise
Employees' Social Security Act, 1969
Purpose
to establish an insurance systems so that employees involved in an accident at work/ who develop a work-related disease, will be provided with compensation and financial assistance
Categories of Employees Exempted From Socso's Coverage
government employees
domestic servants
self-employed persons
foreign workers
business owner and spouses of sole-proprietorship/ partnership
Types of SOCSO
employment injury insurance scheme
provides protection to employees who suffer from accidents arising from work
invalidity pension scheme
a serious disablement/ morbid condition of a permanent nature that is either incurable/ not likely to be cured, which an employee is unable to earn at least 1/3 of what a normal able person could earn
Not Include in Wages
contribution to pension/ provident fund
travelling allowances
any sum paid defray special expenses
annual bonus
gratuity on discharge/ retirement
others remuneration as may be prescribe
Workmen's Compensation Act, 1952
Purpose
to provide compensation to employees who have a work related accident/ who have contracted a work related disease
Employer's Obligation
buy an insurance policy from one of the insurance companies permitted to offer workmen's insurance
pay the annual insurance premium (which amount may not be deducted from employee's wages)
report to the Labour Department and the insurance company when a foreign employee has an occupation accident/ contracts an occupational disease
Factors Insurance for Foreign Workers
foreign workers are more likely than local workers to be involved in an occupational accident
foreign workers are mostly employed in manufacturing, construction, plantation, restaurant
the majority of foreign workers have limited knowledge of local languages, whether Bahasa Malaysia or English
Employment Insurance System Act, 2017
Definition
the protection which society provides for its members, through a series of public measures, against the economic and social distress that caused by the stoppage or substantial reduction.
Factors of loss of income
loss of employment
post-retiremet
accident/ serious illness
child birth and upbringing of children
death of an income earner