SOCSO (Social Security Organisation) in Malaysia, also known as PERKESO (Pertubuhan Keselamatan Sosial) is a government agency that was formed in 1971 under the Ministry of Human Resources. It is mandatory for all private companies in Malaysia to register with PERKESO to protect their employees. Under the Employees’ Social Security Act 1969 (the SOCSO Act), both the employer and employee are required to contribute to PERKESO.
Related read: Guide to Payroll in Malaysia
Employees who are members of PERKESO are entitled to a wide range of benefits, including medical treatment, financial assistance, and death benefits. The two key benefits that PERKESO offers are the Employee Injury Scheme and Invalidity Pension Scheme.
- Employee Injury Scheme (EIS) – Under Section 24 of the SOCSO Act, the EIS protects the employee against accident, or an occupational disease arising out of or in the course of his employment, which includes commuting to and from work. This is provided this particular employee has a Socso contribution.
- Invalidity Pension Scheme (IPS) – Provides 24-hour coverage to an employee who suffers from invalidity or death due to any cause and not related to his employment.
New development in the law
In this article, we will be discussing the EIS as there is a new development in the law. In a recent landmark decision, the Court of Appeal found that employees travelling to work in another town are considered ‘travelling to work’ even if the employee is travelling on his/her day off.
Ali is originally from Ipoh, but he works in Penang. One Sunday (off day) evening, as he was travelling to Penang so that he could make it back to work on Monday, he met with an accident. According to the landmark decision, the SOCSO Act in Malaysia covers this travel too, and Ali will be entitled to a claim under the EIS.
This is a great development as it means that employees who are injured while travelling for work will have access to medical treatment and financial assistance. The scheme also provides death benefits to the families of employees who die as a result of an employment injury. The following is the list of benefits that an employee gets under the EIS:
- Medical Benefit
- Temporary Disablement Benefit
- Permanent Disablement Benefit
- Constant Attendance Allowance
- Facilities for Physical or Vocational Rehabilitation
- Dependants’ Benefit
- Funeral Benefit
- Education Benefit
More information on this can be found on the PERKESO website.
Employees should ensure that they are members of PERKESO so that they can benefit from its wide range of protections in the event of an employment injury.
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