Under the Employees' Social Security Act 1969 ("the Act"), SOCSO provides Employment Injury and Invalidity schemes. Foreign workers are covered under the Employment Injury Scheme only.
Employment Injury Scheme
Employment Injury Scheme protects an employee against accidents or an occupational disease arising from and during his employment.
The protection under this scheme covers the following accidents:
Industrial accidents which occur while working;
on a route between his place of residence or stay and his place of work
on a journey made for any reason which is directly connected to his employment
on a journey between his place of work and the place where he takes his meal during any authorised recess
Accident during emergency
An accident occurs when a worker is in or near his workplace to rescue, assist or protect persons who are injured or in danger during an emergency.
Occupational Disease Diseases that arise from or during employment as described in the Fifth Schedule of the Employees’ Social Security Act 1969.
The occupational diseases include:
Loss of hearing due to continuous excessive noise exposure;
Occupational asthma due to work involving constant exposure to the inhalation of dust or harmful chemicals and etc.
Benefits under the Employment Injury Scheme
Temporary Disablement Benefit
Permanent Disablement Benefit
Physical / Vocational / Return to Work (RTW) Rehabilitation facilities
An Insured Person shall be considered as suffering from invalidity because of a specific morbid condition of permanent nature, either incurable or is not likely to be cured and no longer capable of earning, by work corresponding to his strength and physical ability, at least 1/3 of the customary earnings of a sound Insured Person.
The scheme provides 24-hour coverage to an employee who suffers from invalidity or death due to any cause unrelated to his employment.
Benefits under the Invalidity Scheme
Facilities for Physical /Vocational Rehabilitation/ Return To Work (RTW) and Dialysis
We are now focusing on the first two benefits, i.e. Invalidity Pension & Survivors’ Pension.
Invalidity Pension is:
Payable to the eligible insured persons who have been certified invalid by the Medical Board or Appellate Medical Board.
Payable from the date an invalidity application is received or from the employee’s resignation date if he/she resigns after the invalidity application is received by Organisation.
Payable as long as the employee is invalid or until death
Not attained 60 years of age at the time invalidity application is received; or
If the employee exceeded 60 years of age at the time the invalidity application is received, he/she must show evidence of:
A morbid condition that has set in before attaining 60 years of age and has not been gainfully employed since then.
Certified invalid by the Medical Board or Appellate Medical Board.
Fulfils the qualifying contribution conditions, either full or reduced qualifying period.
Invalidity Pension Rate
Under section 20(1) of the Act, an insured person who is eligible for an invalidity pension shall be paid:
a basic monthly pension equal to 50% of his average monthly wage, increased by 1% of the average monthly wage for every 12 months’ contributions paid over the first 24 months, in respect of him during the period falling between the date when contributions first become payable by him under this Act and the date on which he submits a notice of invalidity, subject to the maximum of 65% of the average monthly wage if he has completed the full qualifying period as prescribed under subsection 17(2) of the Act; or
a basic monthly pension equal to 50% of his average monthly wage if he has completed the reduced qualifying period as prescribed under subsection 17(3) of the Act.
Survivors’ Pension is payable to the eligible dependants of an Insured Person who dies, irrespective of the cause of death unrelated to employment.
The Insured Person dies before attaining 60 years of age and fulfils the qualifying conditions, either full or reduced qualifying period;
The Insured Person who is receiving Invalidity Pension dies regardless of his age.
Survivors’ Pension Rate
According to the Eighth Schedule of the Act, the rate of survivors’ pension payable is as follows:
the daily rate of survivors’ pension shall be a basic amount equivalent to 50% of the insured person’s average monthly wage, increased by 1% of the average monthly wage for every 12 months of contributions paid over the first 24 months, but subject to the maximum of 65% of the average monthly wage in respect of him during the period between the date when contributions first become payable by the insured person and the date of his death, divided by the number of days in the month in which the pension is paid or payable where the insured person has not attained 60 years of age but has completed the full qualifying period as prescribed under section 17A of the SOCSO Act; or
the daily rate of the survivors' pension shall be an amount equivalent to fifty per cent of his average monthly wage divided by the number of days in the month in which the pension is paid or payable where the insured person has not attained 60 years of age but has completed the reduced qualifying period as prescribed under section 17A of the SOCSO Act.
Employees' Social Security (Minimum Average Monthly Wage) Regulations 2022
The Employees' Social Security (Minimum Average Monthly Wage) Regulations 2022 [P.U. (A) 323/2022] ("the Regulations"), which were gazetted on October 11, 2022.
These Regulations come into operation on 1 January 2023; as a result, the Employees' Social Security (Minimum Average Monthly Wage) Regulations of 2014 will be revoked.
The regulations legislate to raise the minimum average monthly wage for an insured person from RM950.00 to RM1,100.00 to qualify for:
either the invalidity pension referred to in subsection 20(2) of the Employees' Social Security Act 1969 ("SOCSO Act"); or
the survivors' pension referred to in paragraph 4 of the Eighth Schedule of the SOCSO Act.
The minimum average monthly wage shall apply to an insured person if the rate of the invalidity pension or survivors’ pension received on 31 December 2022 by the insured person or his dependants, as the case may be, is less than five hundred and fifty ringgit.
These regulations can be found here:-
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