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Your complete guide to everything SOCSO

BY Team Loanstreet

Updated 01 Aug 2023

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Would you want your employer to offer a form of protection for not only yourself, but for your family as well? Would you like to be free from financial disasters if you’re injured, or worse, pass away due to an accident at work? Believe it or not, understanding what SOCSO is and how to make a claim can go a long way in helping you. Here’s the information you’d need to know so that you can make the most out of your SOCSO. 

What's covered in this article?

Overview of SOCSO

SOCSO (Social Security Organization) is also known as PERKESO (Pertubuhan Keselamatan Sosial), and is a Malaysian government agency established in 1971 under the Ministry of Human Resources. Under the Employee’s Social Security Act 1969, it is compulsory for all private companies in Malaysia to register itself with SOCSO in 30 days, from the day the first worker joins the company.

In addition, both parties are responsible to make contributions to SOCSO payments, with employees committing to the smaller portions depending on their salary (the rate is 0.5% - 3%, and the contribution is optional for employees earning a salary of above RM3,000 per month). Employers who don’t register their companies and employees under SOCSO, or don’t make any contributions, are now standing on the wrong side of the law – they will face steep fines and possible incarceration.

What is it for?

The purpose of SOCSO is to provide social security protection in the form of cash payments and benefits to employees in the private sector in the event of workplace injuries, emergencies, occupational diseases, and even death.

As reported by Bernama, Prime Minister Datuk Seri Najib Tun Razak said that the Government has allocated RM70mil to fund SOCSO’s financial benefit payments under the Employment Insurance System (SIP) in 2018.

Who is eligible?

If you are an employee below the age of 60 and hold a private-sector job with a monthly salary, you are one of the 6.5mil Malaysian registered workers covered by SOCSO schemes. If you belong to one of the following employee categories, however, you are exempted from the coverage of SOCSO:

  • Federal and State Government permanent employees
  • Domestic servants
  • Self-employed
  • Sole proprietor or owners of partnership
  • Spouse of a sole proprietor or partners
  • Foreign workers

Available protection schemes and benefits

Generally, SOCSO has two protection schemes for registered members, namely the Employment Injury Scheme and the Invalidity Pension Scheme.

1) Employment Injury Scheme

According to the SOCSO website, the Employment Injury Scheme “provides protection to an employee against accident or an occupational disease arising out of and in the course of his employment”. Under this scheme, it covers industrial and commuting accidents as well as accidents during emergency, and occupational diseases.

2) Invalidity Pension Scheme

Invalidity Pension Scheme offers 24-hour coverage against invalidity. Invalidity refers to a morbid condition that is impossible or unlikely to be cured. For examples, people suffering from malignant cancer, terminal diseases, and stroke, which prohibits them from daily activities and earning a living.

How do you submit your SOCSO claim?

For cases of job-related injuries or death, employees themselves or their family members will want to get the claim process started as soon as possible. It’s usually the case that the human resource department of the company that the employee works at will help facilitate the process by pointing them in the right direction. Therefore, always talk to the company first to get more details.

However, a deeper understanding of the claiming process will help tremendously and reduce the chances of claims being denied. Here are the important steps you must know to increase your SOCSO claim success rate:

1) For first-timer applying for medical benefits, compulsory documents for submission are:

  • Accident report Form 21 or occupational disease report Form PKS 68 or PKS69
  • Claims form (Form 10)
  • Employer’s identification letter
  • Work attendance record
  • Medical leave certificate
  • Employee’s identity card (photocopy)
  • A police report and a sketch map of journey (for accidents happen while traveling to or from workplace)

Treatments are completely free of charge at SOCSO panel clinics or government hospitals and clinics, once the application and submission forms are completed.

2) Additional documents are needed to receive reimbursement for non-SOCSO panel treatments. The documents must be filled and submitted to the employee’s local SOCSO office, and the rate of reimbursement will be determined by SOCSO. These extra documents are:

  • Reimbursement Travel Claims Form – Form PKS (P) 24
  • Reimbursement Payment Claim Report (general) – Form PKS (P) 26
  • Receipt of treatment (original)
  • Appointment card (photocopy)
  • Medical report, if any (photocopy)

3) It is very important to know that once a doctor proves and certifies an employee is unfit to work for a minimum of 4 days (including the day of workplace accident), he or she will be qualified for temporary disablement benefit. It means the employee will receive monetary payment during the period when he or she is unable to work.

4) When employees suffer from permanent disabilities due to workplace accidents, regardless his/her ability to work, they can claim for permanent disablement benefits. They must make a written application at the SOCSO office with the medical board’s reference. Mandatory documents to bring along for this claim are:

  • Medical report for a hospital or a clinic where the employee was treated
  • Application form
  • Identity card (photocopy)
  • Claim form (Form 10)
  • Form PKS (F) 1 with SOCSO contribution details and salary statement
  • Employee’s account details for direct deposit of benefits

The benefit rate is 90% of his/her daily wages, ranging from a minimum of RM10 to RM88.50 per day.

Employees can choose to work while receiving the permanent disability benefit. How the benefits are paid depends solely on the decision of the Medical Board. If employees are not convinced with the arrangement, they can file an appeal to the Medical Appeal Board within 90 days, beginning from the date of notification.

5) Last but not least, employees are entitled to receive constant attendance allowance if they have lost 100% of their ability to work and earn, as a result of workplace accidents. In other words, they are the ones who are invalid or suffer total permanent disability, and certified by the Medical Board in Malaysia.

Employees will receive the allowance (40% of total salary, with a cap of RM500/month) directly.

Why is understanding SOCSO important?

The risks are real. SOCSO helps employees and their families who have encountered the loss of income due to injury or death. If you are serious about protecting you and your loved one’s future against potential risks, you need to understand how these benefits work and when they’re applicable.

Besides that, with more people having access to this information, they’re able to educate others, especially new graduates and labour workers who lack the awareness of SOCSO’s critical role – you’ll be amazed how many there are.

Facts and updates you may want to know

Got everything sorted?

With medical costs on the rise in Malaysia, taking full advantage of SOCSO is highly recommended even if it does involve a considerable amount of time and paperwork. For more information and updates, you can visit SOCSO official website or read our article 5 Things You Should Know About SOCSO!

*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.

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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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