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Employees’ Social Security Act (SOCSO) 1969 - Coggle Diagram
Employees’ Social Security Act (SOCSO)
1969
PURPOSES
To establish an insurance scheme which ensures employees involved in a work-related accident, or who contract a work-related disease receive compensation
To provide compensation to employees who have a
work related accident
/ who have contracted a
work related disease
SCOPE
:check:
Malaysian citizens
employed in a
private sector
earning up to
RM4000
per month but
once-in-always-in
(even wages increase to 5000, must contribute to socso) principle is applied
:check: Effective 1 January 2019, employers who hire
foreign workers
(excluding domestic servants) shall register their employees with Social Security Organisation (SOCSO) and contribute to the
Employment Injury Scheme
under the Employees' Social Security Act 1969
SOCIAL SECURITY PROTECTION SCHEMES UNDER SOCSO
1. Employment Injury Scheme
Benefits
Local Employees
:check: Medical benefit
:check: Temporary disablement benefit
:check: Permanent disablement benefit
:check: Constant attendance allowance
:check: Facilities for physical and vocational rehabilitation
:check: Return to work programme
:check: Dependents’ benefit
:check: Funeral benefit
:check: Education benefit
Foreign Workers
:check: Medical benefit
:check: Temporary disablement benefit
:check: Dependents’ benefit
:check: Permanent disablement benefit
:check: Constant attendance allowance
:check: Funeral benefit
:check: Rehabilitation facilities
Provides protection to an employee against accident/an occupational disease arising out of & in the course of his employment
Industrial accident
Commuting accident
:explode: On a route between his place of residence or stay and his place of work
:explode: On a journey made for any reason which is directly connected to his employment
:explode: On a journey between his place of work and the place where he takes his meal during any authorized recess
Accident during emergency
Accident which occurs during an emergency at the employer's premises while in the course of assisting, rescuing, or protecting other people from disaster or danger during an emergency
Occupational diseases
Disease resulted from his occupation as described in the Fifth Schedule of Employees' Social Security Act 1969 such as:
:explode: Loss of hearing due to continuous excessive noise exposure
:explode: Occupational asthma due to work involving constant exposure to the inhalation of dust or harmful chemical and etc.
2. Invalidity Scheme
Benefits
:check: Invalidity pension
:check: Invalidity grant - kalau tak cukup 24 bln caruman, umur tak smpai 60thn
:check: Constance attendance allowance
:check: Survivors pension (pencen penakat)
:check: Funeral benefit
:check: Facilities for physical or vocational rehabilitation and dialysis
:check: Education benefit
:check: Survivors pension (pencen penakat) pencen penakat diberi if penerima meninggal
:check: Invalidity grant - kalau tak cukup 24 bln caruman, umur tak smpai 60thn
An Insurance Person shall be considered as suffering from invalidity by reason of specific morbid condition of permanent nature either incurable or is not likely to be cured and no longer capable of earning, by work corresponding to his strength and physical ability, at least 1/3 of the customary earnings of a sound Insured Person
The schemes provide 24-hour coverage to employee who suffers from invalidity or death due to any cause and not related to his employment.
3. Self-Employment Social Security Scheme
This scheme also provides cash benefits to taxi drivers and their
dependants
besides providing medical care, physical rehabilitation and vocational training
The Self-Employed Employment Injury Scheme for
self-employed taxi drivers
or
individuals carrying out similar services
took effect on
13 June 2017
This social protection was accorded under the provisions of the
Self Employment Social Security Act 2017
The
duration of protection is 12 months
from the date and time the contribution is paid and validated by the payment receipt
This Scheme provides protection to self-employed insured persons from
employment injuries
including
occupational disease and accidents during work-related activities
RATE OF CONTRIBUTION
First category
:check: For employees who are
less
than 60 years of age
, contributions payable by
employers and employees are for the
Employment
Injury Scheme and the Invalidity Scheme.
:check: The rate of contribution
under this category comprises
1.75% of
employer’s share and 0.5%
of employees’ monthly
wages according to the contribution schedule.
Second category
:check: All employees who have
reached the age of 60
must be covered under this
category for the
Employment Injury Scheme
only
:check: The rate of contribution
under this category is
1.25% of employees’ monthly
wages
, payable by the employer, based on the
contribution schedule.