1. Benefits of SOCSO
SOCSO was incorporated to provide assistance both medically and financially to employees that have had their abilities reduced or incapacitated due to accidents or diseases. They also provide assistance to the dependants of employees if they die through pensions.
The benefits under this scheme is divided into the Employment Injury Scheme and the Invalidity Pension Scheme.
Employment Injury Scheme Benefits:
This scheme provides coverage and protection for employees who suffers from employment injury.
- Medical benefits
- Temporary disablement benefit
- Permanent disablement benefits
- Constant attendance allowance
- Rehabilitation benefit
- Return to work programme
- Dependent benefit
- Funeral benefits
- Education benefits.
Also important to note that employees that have stopped contributing to SOCSO might still be covered if they fulfill certain conditions. A fact that has gone unnoticed by many.
Invalidity Pension Scheme:
This scheme covers employees who experience invalidity and death due to any causes not related to their employment. Invalidity implies the inability of an employee to achieve one-third of the customary earnings of a sound insured person. This inability may take form of permanency or it’s very unlikely to recover.
The benefits that could be attained are:
- Invalidity pension
- Invalidity grant
- Survivors' pension
- Funeral benefit
- Facilities for Physical Rehabilitation and Dialysis
- Education Benefits
The survivors pension is also an important piece of information for those who assume that the pension will stop once the employee has passed away. Through the survivors pension scheme, dependant family members can apply to have it transferred to them.
2. Free Health Check-Ups
SOCSO has issued health checks vouchers to 2.2 million Malaysians. However, results have shown that a staggering 1.7 million (77.3% of the eligible candidates) eligible for the free medical health check has declined said initiative.
While it takes effort to undergo the entire process, taking time off work to attend this free service is a sensible action and should be encouraged.
3. Are You Self-Employed?
If your answer above is a yes, rest assured that the Human Resource Ministry targets self-employed workers. This includes businessmen and taxi drivers to be eligible for the SOCSO protection scheme in 2015. This new scheme would allow most self-disciplinary taxi drivers to contribute towards SOCSO to safeguard their welfare.
Given the upcoming GST implementation and the growing concerns on financial expenses, this could be the positive silver lining of all implementations.
4. Is SOCSO Compulsory?
SOCSO contribution is compulsory for all Malaysian employees with monthly salaries lower than RM3,000.
However, it is optional for those with starting salaries above RM3,000.
Owing to the "once in always in" principle, a SOCSO member who has contributed to SOCSO will continue to be member even when salaries have increased to over RM3,000.
5. What Is Your SOCSO Contribution?
The Rate of Contribution Schedule would highlight a better idea to what your are expected to contribute.
You should be aware of which category you belong to.
First Category: Employment Injury And Invalidity Schemes
- All employees below 60 years old are required to participate in this category.
- You should be aware that only 0.5% of employee’s monthly wages should be extracted out for the contribution. Any figures that suggest higher should be reported.
Second Category: Employment Injury Scheme Only
- Employees who 60 years old and above and still working
- Employees above 55 years old who has made their first SOCSO contribution
- Insured Person receiving Invalidity Pension and still working and receiving less than 1/3 of the average monthly wages before the invalidity
- Employer to bear the contribution costs to SOCSO at 1.25% of monthly wages
For the calculation of your Socso contribution, you can refer to this link.
SOCSO remains under the radar despite constant contribution to society. The underutilization of SOCSO will ultimately result in the loss of someone who might be in need of aid. Help spread the word and share this knowledge with friends and family. You never know who you might be helping. For a deeper look into what SOCSO can do for you, please refer to their website over here.