Here’s What You Need To Know About SOCSO

You know part of your salary goes to SOCSO every month and you know that it involves payouts should you lose your job, get injured in an accident or pass away.

But, SOCSO comes with far more benefits and there could be no better time to make use of it than now.

SOCSO’S COVID-19 relief measures

Employment Retention Programme
Immediate financial aid for employees who have been asked to take no paid leave by their employers due to COVID-19 impact. Private sector employees including temporary employees contributing to EIS, earning RM4,000 and below will receive RM600 which will be credited into the employers’ account. Employers need to credit the payment to employees within 7 days.
Wage Subsidy Programme
Employers in the private sector experiencing a fall in income of more than 50% since Jan 1, 2020 will be able to claim RM600 per worker (limited to 100 workers, earning below RM4,000 and contributing to EIS) for three months. This measure is to avoid employers from retrenching employees during COVID-19 economic downturn. More info here.

What is SOCSO?

Social Security Organisation (SOCSO) or Pertubuhan Keselamatan Sosial (PERKESO) provides social security protections to employees.

Employers who employ one or more employees need to register and contribute to SOCSO based on specific contribution rates according to the Employees’ Social Security Act 1969. Employers are also required to ensure all employees are registered with SOCSO and contribute to SOCSO. The employer’s responsibility includes reporting all work-related accidents involving their workers within 48 hours.

As for employees, all employees under a contract of service or apprenticeship in the private sector and contractual or temporary staff of the Federal or State Government and Statutory Bodies need to register and contribute to SOCSO.

Rate of contribution from employer and employee depends on the actual monthly wage of the employee. Check out the detailed table here.

Types of contributions under SOCSO

That’s right. There are several schemes under SOCSO. If you take a look at your salary slip, there will be a deduction named EIS. Well, that comes under SOCSO as well. But, why is it deducted separately?

Here are the answers!

1. Employment Injury Scheme

The Employment Injury Scheme protects an employee against accident and occupational disease during the employment period.

Types of accidents being covered are:

  • Industrial accident
  • Commuting accident
  • Accident during emergency
  • Occupational diseases such as loss of hearing due to excessive noise exposure, occupational asthma due to exposure to dust or harmful chemical at work

The benefits you are entitled to:

  • Medical Benefit
  • Temporary Disablement Benefit
  • Permanent Disablement Benefit
  • Constant-attendance Allowance
  • Facilities for Physical / Vocational Rehabilitation
  • Dependents’ Benefit
  • Funeral Benefit
  • Education Benefit

2. Invalidity Scheme

The Invalidity Scheme provides 24-hour coverage to employee suffering from invalidity or death due to any cause. This means, even if the cause of invalidity and death is unrelated to employment, he/she will be covered under this scheme.

The benefits you are entitled to:

  • Invalidity Pension
  • Invalidity Grant
  • Constant-attendance Allowance
  • Survivors’ Pension
  • Funeral Benefit
  • Facilities for Physical/Vocational Rehabilitation and Dialysis
  • Education Benefit

3. Employment Insurance System (EIS)

EIS will be deducted separately and not under the SOCSO category. If you have been contributing to EIS and you lose your job, you will get some benefits to help you cope and start your next chapter of life without much difficulty.

Contribution rate differs according to monthly wages. Here’s the contribution rates from employers and employees.

The benefits you are entitled to are:

Job Search Allowance (JSA)
If you have lost your one and only job, you will get a monthly allowance for 3-6 months according to your monthly wages.
Reduced Income Allowance (RIA)
If you have multiple sources of income but you lose at least one of your job, you will receive allowance as stated in JSA.
Training Fee (TF)
You will be able to undergo vocational training up to six months for a maximum cost of RM4,000.
Training Allowance (TA)
If you are undergoing training, you will receive allowance as an encouragement to finish your training. Up to six months, you will receive an allowance of RM10-RM20 per training day.
Early Re-Employment Allowance (ERA)
If you are a JSA recipient and you return to work, you will receive this incentive in a lump sum. This sum of money equals 25% of your JSA entitlement.
Re-Employment Placement Programme
If you are registered under this programme, you will be assisted by a SOCSO Employment Services Offer for your job search.
Career Counselling
During your job search, you will get access to career counselling to identify issues that you may face during your journey.
Take note!
You will need to apply to enjoy the benefits of all these allowances and programmes. More info here.

4. Self-Employment Social Security Scheme

This scheme came into effect in 2017 for taxi, e-hailing and bus drivers. However earlier this year, the scheme was extended to include the self-employed in a wide variety of sectors.

The sectors are:

  • Good and Food Transport
  • Online Business
  • Agriculture
  • Information Technology
  • Livestock
  • Data processing
  • Forestry
  • Agents
  • Fisheries
  • Professional Services
  • Food
  • Support Services
  • Manufacturing
  • Arts
  • Construction
  • Household Services
  • Hawkers
  • Beauty and Healthcare
  • Accommodation Premises

If you are self-employed and you contribute to this scheme, you will receive protection against employment injuries and you will receive benefits such as Medical Benefit, Temporary Disablement Benefit, Permanent Disablement Benefit, Constant Attendance Allowance, Dependent’s Benefit, Funeral Benefit, Education Benefit, and facilities for physical or vocational rehabilitation.

There is no age limit for contributors and contributions can be made on a monthly or yearly basis. The contribution is based on your monthly earning as below:

Insured Monthly EarningContribution Payment Per MonthContribution Payment Per Year 


How to make a SOCSO claim?

A SOCSO claim falls on the shoulders of the employer. In the event of an accident at the workplace, the employer is required to notify SOCSO as below.

  1. Submit the Accident Report (Form 34) which can be downloaded from SOCSO’s website.
  2. Submit punch cards/attendance records, medical certificate and a copy of the identity card to the SOCSO Office.
  3. A police report and sketch map of the route taken at the time of accident, if the accident happens during commute to and from work.

SOCSO’s free medical check-up

If you are 40 and above, you will be eligible for SOCSO’s Health Screening Program (HSP).

You can check your eligibility via the SeHAT Portal and attain your HSP number via SMS.

All you need to do is bring your MyKAD and HSP number to any HSP panel clinic for health screening.

See? SOCSO is way more than a lump sum payout if you injure yourself or pass away!

Update: SOCSO has changed their website since this article was written. We have updated this article to reflect the changes in hyperlinks.


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