Transcript CHAPTER 8 SOCSO

PERTUBUHAN
KESELAMATAN SOSIAL
ESTABLISHMENT
Set up in 1971
 Enforce Employees’ Social Security Act
1969
 Protection:

Medical care
 Cash benefits
 Rehabilitation

Concept on socso

Employers Liability

Who employs one or
more employees –
required to register &
contribute monthly for
all employees

Employee


Earns a monthly wage
RM3,000 or less
More than RM3,000:


Previously registered,
must compulsorily
continue
Not previously
registered, can opt to
do so.
Concept on socso

Coverage:

All employee
irrespective of the
emplyment status,
permanent, temporary
etc

Exemption:
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Government
employees
Domestic servants
Self employed persons
Foreign workers
Concept on socso

AGE:


Must register
irrespective of age
55 and above wiil
continue to be
protected (EIS-e’yer)

CONTRIBUTION


Employees – 0.5%
(IPS)
Employers – 1.75%
(EIS & IPS)
COVERAGE

EMPLOYMENT INJURY
SCHEME

Protection for accidents:
 While traveling
 Arising out and in the
course of employment
 Occupational disease

INVALIDITY PENSION
SCHEME
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
Serious disablement or
morbid condition of a
permanent nature that is
either incurable
Unable to earn at least 1/3
of normal person
24 hours coverage
Against invalidity or death
due to any cause not
connected with his
employment
BENEFITS
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EIS
Medical benefit
Temporary disablement
benefit
Permanent disablement
benefit
Constant attendance
allowance
Dependant’s benefit
Funeral benefit
Rehabilitation benefit

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IPS
Invalidity pension
Invalidity grant
Constant attendance
allowance
Survivors pension
Funeral benefits
Rehabilitation
Educational loan
Employment Injury Scheme
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Medical benefits

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
Occupational disease
Treatment at SOCSO
panel clinic @
government
Hospital/clinic
Free – socso
Serious injury –


to nearest government
hospital
2nd class ward-inpatient

Temporary
disablement benefit



Unfit for work not less
than 4 days
Only during medical
leave
Daily rate = 80% of
daily wage or min
RM10 and max RM52
Employment Injury Scheme

Permanent disablement
benefit

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Cash – certified of
permanent disablement
Loss 100% = 90% daily @
min RM10
Loss 20% or less = lump
sum payment
Exceed 20% = 1/5 daily
rate into lump sum and
balance = monthly pension
Can continue work

Constant attendance
allowance



Permanent total
disablement (100% loss0
Severely incapacitated &
requires personal
attendance of another
person
40% of rate total
disablement, max RM500
Employment Injury Scheme
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Dependant’s benefit

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If employees dies
90% of the daily wage
Employment Injury Scheme
Widow
3/5
For life until re-marriage wce
Children
Widower
2/5 @
3/5
3/5
Natural/step/adopted/out of wedlock –
up to age 21 or marriage. 1st degree
Wholly depend on wife until
remarriage or can support himself wce
Parents
4/10
For life
Grandpare 4/10
nts
For life
Brothers & 3/10
sisters
Up to age 21 or marriage wce
Employment Injury Scheme
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Funeral benefit
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RM1,500
As resulted of EI or
while receiving
disablement benefits
Next of kin @ person
WIL
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Rehabilitation benefit


Facilities for vocational
& physical
rehabilitation
training
Invalidity Pension Scheme
Qualifying condition
• Has not completed age 55
• Certified by medical board
• Fulfilled the qualifying condition contribution

Full qualifying condition

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At least 24 months within
40 consecutive months
2/3 = at least 24
50% - 65% of monthly
salary

Reduced qualifying
condition


Minimum RM 250
1/3 = at least 24
50%
Invalidity Pension Scheme

Invalidity grant

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Paid for those who are
not qualified for
Invalidity pension
At least 12 months
amount of the total
contributions
Outright payment

Constant attendance
allowance
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Recipient of invalidity
pension
40% of the rate
invalidity pension
Max RM500 per month
Invalidity Pension Scheme
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Survivor’s pension
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Only if employee dies
irrespective of the
cause of death
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While receiving
invalidity pension
Not more than 55 years
Rate:
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Invalidity pension =
equal
If not = 50% - 65%
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Funeral benefits
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While receiving
invalidity pension
Before 55 age
As EIS
CHALLENGES
Increasing cost
 Investment issues
 Efficiency in processing claims
 Pressures from mass media
 Pressures from NGOs
 Migrant workers
 Fraudulent claims
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