PERTUBUHAN KESELAMATAN SOSIAL. ESTABLISHMENT Set up in 1971 Set up in 1971 Enforce Employees’ Social Security Act 1969 Enforce Employees’ Social Security

PERTUBUHAN PERTUBUHAN KESELAMATAN SOSIALKESELAMATAN SOSIAL

ESTABLISHMENTESTABLISHMENT

Set up in 1971Set up in 1971Enforce Employees’ Social Security Act Enforce Employees’ Social Security Act

19691969Protection:Protection:

Medical careMedical careCash benefitsCash benefitsRehabilitationRehabilitation

Concept on socsoConcept on socso

Employers LiabilityEmployers Liability Who employs one or Who employs one or

more employees – more employees – required to register & required to register & contribute monthly for contribute monthly for all employeesall employees

EmployeeEmployee Earns a monthly wage Earns a monthly wage

RM3,000 or lessRM3,000 or less More than RM3,000:More than RM3,000:

Previously registered, Previously registered, must compulsorily must compulsorily continuecontinue

Not previously Not previously registered, can opt to registered, can opt to do so.do so.


Coverage:Coverage: All employee All employee

irrespective of the irrespective of the emplyment status, emplyment status, permanent, temporary permanent, temporary etcetc

Exemption:Exemption: Government Government

employeesemployees Domestic servantsDomestic servants Self employed personsSelf employed persons Foreign workersForeign workers


AGE:AGE: Must register Must register

irrespective of ageirrespective of age 55 and above wiil 55 and above wiil

continue to be continue to be protected (EIS-e’yer)protected (EIS-e’yer)

CONTRIBUTIONCONTRIBUTION Employees – 0.5% Employees – 0.5%

(IPS)(IPS) Employers – 1.75% Employers – 1.75%

(EIS & IPS)(EIS & IPS)

COVERAGECOVERAGE

EMPLOYMENT INJURY EMPLOYMENT INJURY SCHEMESCHEME Protection for accidents:Protection for accidents:

While travelingWhile traveling Arising out and in the Arising out and in the

course of employmentcourse of employment Occupational disease Occupational disease

INVALIDITY PENSION INVALIDITY PENSION SCHEMESCHEME Serious disablement or Serious disablement or

morbid condition of a morbid condition of a permanent nature that is permanent nature that is either incurableeither incurable

Unable to earn at least 1/3 Unable to earn at least 1/3 of normal personof normal person

24 hours coverage24 hours coverage Against invalidity or death Against invalidity or death

due to any cause not due to any cause not connected with his connected with his employmentemployment

BENEFITSBENEFITS

EISEIS Medical benefitMedical benefit Temporary disablement Temporary disablement

benefitbenefit Permanent disablement Permanent disablement

benefitbenefit Constant attendance Constant attendance

allowanceallowance Dependant’s benefitDependant’s benefit Funeral benefitFuneral benefit Rehabilitation benefitRehabilitation benefit

IPSIPS Invalidity pensionInvalidity pension Invalidity grantInvalidity grant Constant attendance Constant attendance

allowanceallowance Survivors pensionSurvivors pension Funeral benefitsFuneral benefits RehabilitationRehabilitation Educational loanEducational loan

Employment Injury SchemeEmployment Injury Scheme

Medical benefitsMedical benefits Occupational diseaseOccupational disease Treatment at SOCSO Treatment at SOCSO

panel clinic @ panel clinic @ government government Hospital/clinicHospital/clinic

Free – socsoFree – socso Serious injury – Serious injury –

to nearest government to nearest government hospitalhospital

22ndnd class ward-inpatient class ward-inpatient

Temporary Temporary disablement benefitdisablement benefit Unfit for work not less Unfit for work not less

than 4 daysthan 4 days Only during medical Only during medical

leaveleave Daily rate = 80% of Daily rate = 80% of

daily wage or min daily wage or min RM10 and max RM52RM10 and max RM52


Permanent disablement Permanent disablement benefitbenefit Cash – certified of Cash – certified of

permanent disablementpermanent disablement Loss 100% = 90% daily @ Loss 100% = 90% daily @

min RM10min RM10 Loss 20% or less = lump Loss 20% or less = lump

sum paymentsum payment Exceed 20% = 1/5 daily Exceed 20% = 1/5 daily

rate into lump sum and rate into lump sum and balance = monthly pensionbalance = monthly pension

Can continue workCan continue work

Constant attendance Constant attendance allowanceallowance Permanent total Permanent total

disablement (100% loss0disablement (100% loss0 Severely incapacitated & Severely incapacitated &

requires personal requires personal attendance of another attendance of another personperson

40% of rate total 40% of rate total disablement, max RM500disablement, max RM500


Dependant’s benefitDependant’s benefit If employees diesIf employees dies 90% of the daily wage90% of the daily wage


WidowWidow 3/53/5 For life until re-marriage wceFor life until re-marriage wce

ChildrenChildren 2/5 @ 2/5 @ 3/53/5

Natural/step/adopted/out of wedlock – Natural/step/adopted/out of wedlock – up to age 21 or marriage. 1up to age 21 or marriage. 1stst degree degree

WidowerWidower 3/53/5 Wholly depend on wife until Wholly depend on wife until remarriage or can support himself wceremarriage or can support himself wce

ParentsParents 4/104/10 For lifeFor life

GrandpareGrandparentsnts

4/104/10 For lifeFor life

Brothers & Brothers & sisterssisters

3/103/10 Up to age 21 or marriage wceUp to age 21 or marriage wce


Funeral benefitFuneral benefit RM1,500RM1,500 As resulted of EI or As resulted of EI or

while receiving while receiving disablement benefitsdisablement benefits

Next of kin @ personNext of kin @ person WILWIL

Rehabilitation benefitRehabilitation benefit Facilities for vocational Facilities for vocational

& physical & physical rehabilitationrehabilitation

trainingtraining

Invalidity Pension SchemeInvalidity Pension Scheme

Full qualifying conditionFull qualifying condition At least 24 months within At least 24 months within

40 consecutive months40 consecutive months 2/3 = at least 242/3 = at least 24 50% - 65% of monthly 50% - 65% of monthly

salarysalary

Reduced qualifying Reduced qualifying conditioncondition 1/3 = at least 241/3 = at least 24 50% 50%

Qualifying condition

• Has not completed age 55

• Certified by medical board

• Fulfilled the qualifying condition contribution

Minimum RM 250


Invalidity grantInvalidity grant Paid for those who are Paid for those who are

not qualified for not qualified for Invalidity pensionInvalidity pension

At least 12 monthsAt least 12 months amount of the total amount of the total

contributionscontributions Outright paymentOutright payment

Constant attendance Constant attendance allowanceallowance Recipient of invalidity Recipient of invalidity

pensionpension 40% of the rate 40% of the rate

invalidity pensioninvalidity pension Max RM500 per monthMax RM500 per month


Survivor’s pensionSurvivor’s pension Only if employee dies Only if employee dies

irrespective of the irrespective of the cause of deathcause of death

While receiving While receiving invalidity pensioninvalidity pension

Not more than 55 yearsNot more than 55 years

Rate:Rate: Invalidity pension = Invalidity pension =

equalequal If not = 50% - 65%If not = 50% - 65%

Funeral benefitsFuneral benefits While receiving While receiving

invalidity pensioninvalidity pension Before 55 ageBefore 55 age As EISAs EIS

CHALLENGESCHALLENGES

Increasing costIncreasing cost Investment issuesInvestment issuesEfficiency in processing claimsEfficiency in processing claimsPressures from mass mediaPressures from mass mediaPressures from NGOsPressures from NGOsMigrant workersMigrant workersFraudulent claimsFraudulent claims

Documents

PERTUBUHAN KESELAMATAN SOSIAL. ESTABLISHMENT Set up in 1971 Set up in 1971 Enforce Employees’ Social Security Act 1969 Enforce Employees’ Social Security