2.2 Withholding of social security

Commentary

2.2.2 PERKESO (SOCSO) social security contributions

Malaysia
Malaysia | Commentary

2.2.2 PERKESO (SOCSO) social security contributions

Malaysia | Commentary

2.2.2     PERKESO (SOCSO) social security contributions

PERKESO (Pertubuhan Keselamatan Sosial), is Malaysia's social security organisation, and it is also referred to as SOCSO.

The employer and employee both contribute to the social security system. The governing legislation is the Workers Social Security Act 1969.

The contributions provide coverage for:

  1.  

    •     employment injury and invalidity, or

  2.  

    •     employment injury only

Eligibility for coverage depends on age, and this also affects the contributions category (see below).

Employment Injury Scheme (EIS)

The employment injury scheme (EIS) provides coverage for:

  1.  

    •     work-related accident

  2.  

    •     commuting accidents

  3.  

    •     occupational disease

Details of the benefits available under EIS can be found here.

EIS for foreign workers is an element of the EIS scheme that applies to all foreign workers and expatriate employees with effect from 1 January 2019. The scheme provides cover for work accidents and illness for:

  1.  

    •     medical and rehabilitation costs

  2.  

    •     disability

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