SOCSO

 The History of Social Security Organization (SOCSO) commenced under the

Employees Social Security Act 1969 as a Government Department on 1 January
1971 under the Ministry of Labor and Manpower. SOCSO is entrusted to
administer two social security schemes as a Disaster Employment Scheme and
Disability Scheme.

 The Employment Disaster Scheme protects workers from occupational hazards

incidents, including occupational illnesses and accidents during work-related
travel. The Disability Scheme also provides 24-hour protection to workers for
illness or death for any reason.
 OBJECTIVE

 Provides social security protection to all their employees and

dependents through social security schemes based on the concept of
caring society in line with National Development Policy and Vision
2020.
 Who is responsible for paying SOCSO? Who are covered?

- Employers are required to pay monthly contributions for each eligible employee according to the
rate specified under the Employees’ Social Security Act, 1969. These contributions are divided into
two (2) types, namely:

Contributions of the First Category

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.

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.

Contributions of the Second Category

The rate of contribution under this category is 1.25% of employees’ monthly wages, payable by the
employer, based on the contribution schedule. All employees who have reached the age of 60 must be
covered under this category for the Employment Injury Scheme only.
 Differentiate the two schemes

 Types and Categories of SOCSO Contributions

First Category (Employment Injury Scheme And Invalidity Pension Scheme)

This is applicable for employees aged below 60. The company will pay 1.75% while the
staff/workers’ will contribute 0.5% of their wages for the Employment Injury Insurance Scheme and
the Invalidity Pension Scheme.

Second Category (Employment Injury Scheme Only)

1) For employees above 60 years of age and still working.

2) For employees above 55 years of age when first registered and contributed to SOCSO;
3) For an Insured Person receiving Invalidity Pension who is still working and receiving wages which
is less than1/3 of the average monthly wage before invalidity.Under this category contributions are
only paid by the employer for protection under the Employment Injury Scheme.
 Employment injury scheme Invalidity Scheme
Medical benefit Invalidity pension
Temporary disablement benefit Invalidity grant
Permanent disablement benefit Constance attendance allowance
Constant attendance allowance Survivors pension
Facilities for physical and vocational Funeral benefit
rehabilitation Facilities for physical or vocational
Return to work programme rehabilitation and dialysis
Dependents’ benefit Return to work programme
Funeral benefit Education benefit
Education benefit
 Based on Mr. B’s Case

 Mr B’s case fall under the employement injury scheme

 Since he is suffering from an accident at workplace, he will be given free medical

treatment at SOCSO’s panel clinic or Government clinic / hospital until they are fully
recovered.

 Employers or employees can claim for reimbursement of expenses incurred in respect

of medical treatment at SOCSO’s non-panel clinic.

 Temporary Disablement Benefit is paid for the period Mr. B is on medical leave
certified by a doctor for not less than 4 days including the day of accident.

 Mr. B requires the facilities for physical rehabilitation that includes, physiotherapy,
occupational therapy, reconstructive surgery, supply of prosthetics, orthotics and supply
of orthopaedics apparatus such as wheelchair, crutches or special shoes.