SOCSO Benefits Explained: What Every Malaysian Employee Needs to Know

What is SOCSO and Who Needs to Contribute?

SOCSO, also known as PERKESO, is a federal statutory body in Malaysia that administers social security schemes under the Employees’ Social Security Act 1969. SOCSO provides social security protection to eligible employees, including protection for employment injuries, invalidity, and, from 1 June 2026, non-employment injuries under the Non-Employment Injury Scheme, also known as SKBBK / LINDUNG 24 JAM. SOCSO contribution is mandatory for every employer with at least one employee. This requirement applies to:

  • Malaysian citizens
  • Permanent residents
  • Foreign workers with valid work permits

Generally, employees below the age of 60 fall under Category 1, which covers the Employment Injury Scheme, Invalidity Scheme, and Non-Employment Injury Scheme. Employees aged 60 and above, as well as certain employees aged 55 and above who had no prior SOCSO contribution record before reaching 55, fall under Category 2, which covers the Employment Injury Scheme and Non-Employment Injury Scheme.

Understanding Your Contribution Rates

The SOCSO contribution structure involves both employers and employees, depending on the employee’s contribution category. SOCSO contributions are calculated based on monthly wage categories and are subject to the RM6,000 wage ceiling. This means that even if your monthly salary exceeds RM6,000, your SOCSO contribution will be calculated based on the RM6,000 ceiling.

Category 1: Employment Injury Scheme, Invalidity Scheme and Non-Employment Injury Scheme

Category 1 generally applies to employees below the age of 60, except for employees who have reached 55 years of age and had no prior SOCSO contributions before turning 55 due to non-eligibility under the Employees’ Social Security Act 1969. Category 1 contributions include:

  • Employer contribution: 1.75% of monthly wages for the Employment Injury Scheme.
  • Employee contribution: 0.5% of monthly wages for the Invalidity Scheme, plus the employee contribution for the Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM).

Category 2: Employment Injury Scheme and Non-Employment Injury Scheme

Category 2 applies to specific groups of employees, including employees aged 60 and above, as well as certain employees aged 55 and above who had no SOCSO contribution record before turning 55. Category 2 contributions include:

  • Employer contribution: 1.25% of monthly wages for the Employment Injury Scheme.
  • Employee contribution: Non-Employment Injury Scheme contribution only, under SKBBK / LINDUNG 24 JAM.

SKBBK / LINDUNG 24 JAM Phased Contribution Rates

The Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM) takes effect from 1 June 2026. This contribution is fully borne by the employee, but the employer is responsible for deducting it from the employee’s wages and paying it to SOCSO / PERKESO on the employee’s behalf. The SKBBK contribution is mandatory and implemented in phases:

  • Phase 1: Years 1–2, employee contribution at 0.75%.
  • Phase 2: Years 3–5, employee contribution at 1.00%.
  • Phase 3: From Year 6 onwards, employee contribution at 1.25%.

Main Functions and Schemes Managed by SOCSO

SOCSO performs several key functions to support the wellbeing and security of Malaysia’s workforce:

  • Implementing social security schemes: Including the Employment Injury Scheme, Invalidity Scheme, and Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM).
  • Accident prevention and health promotion: Initiatives aimed at creating safer and healthier workplaces.
  • Financial assistance and rehabilitation: Support for workers affected by injury, invalidity, or qualifying accidents.
  • Return to Work (RTW) programme: A rehabilitation programme designed to help affected workers recover and return to employment.
  • Human resource development: Supporting workforce development and employee wellbeing.

Comprehensive Benefits Under SOCSO Schemes

SOCSO provides a range of benefits designed to offer financial protection and support in different situations:

1. Employment Injury Scheme

This scheme protects employees who suffer injuries due to accidents or occupational diseases arising out of and in the course of employment. Benefits include:

  • Medical coverage: Covers medical expenses for work-related injuries or occupational diseases.
  • Temporary disability benefits: Provides financial assistance to employees who are temporarily unable to work due to injury.
  • Permanent disability benefits: Compensation for permanent loss of earning capacity due to work-related injury.
  • Constant attendance allowance: Provided to permanently disabled employees who require ongoing personal care.
  • Dependants’ benefits: Financial support for dependants of employees who die due to work-related injury or occupational disease.
  • Funeral benefits: Covers funeral expenses when an employee dies due to employment injury.
  • Rehabilitation facilities: Access to physical and vocational rehabilitation services to support recovery and return to work.

2. Invalidity Scheme

This scheme provides protection against invalidity or death caused by non-employment-related reasons. Benefits include:

  • Invalidity pension: Monthly payments to employees certified as invalid and unable to earn at least one-third of their normal income.
  • Invalidity grant: A lump-sum payment for employees who do not meet the full contribution conditions for invalidity pension.
  • Survivors’ pension: Monthly payments to the dependants of a deceased employee, provided the employee met the eligibility conditions at the time of death.
  • Funeral benefits: Similar to the Employment Injury Scheme, covering funeral expenses.
  • Constant attendance allowance: Provided to invalidity pension recipients who require ongoing personal care.
  • Vocational and physical rehabilitation: Support to help persons with invalidity regain abilities and improve quality of life.

3. Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM)

The Non-Employment Injury Scheme, also known as SKBBK / LINDUNG 24 JAM, provides broader 24-hour protection for employees against accidents that are not caused by employment. This scheme takes effect from 1 June 2026. The contribution is borne by the employee, while the employer is responsible for deducting and remitting it to SOCSO / PERKESO.

  • Scope of protection: Provides social security protection for non-work-related accidents.
  • Contribution method: Fully borne by the employee, deducted from wages by the employer and paid to PERKESO.
  • Implementation method: Implemented in phases, starting from 0.75% in Phase 1 and gradually increasing to 1.25% from Year 6 onwards.

How to Claim SOCSO Benefits: Step-by-Step Guide

If you are injured at work, diagnosed with an occupational disease, involved in a qualifying accident, or become invalid, the claim process generally involves the following steps:

  1. Report the incident: After a workplace injury, diagnosis of an occupational disease, or qualifying accident, notify your employer as soon as possible. For workplace accidents, employers are generally required to report the incident to PERKESO within the prescribed period.
  2. Seek medical treatment: Workers should seek treatment at a SOCSO-appointed clinic or government hospital. The attending doctor will issue a medical certificate (MC) to confirm the condition. If hospitalisation or specialist treatment is required, SOCSO may cover the related medical expenses subject to eligibility and applicable rules.
  3. Submit claim documents: After receiving treatment, the required claim documents must be submitted to SOCSO. This can be done online through the ASSIST portal or in person at the nearest SOCSO office. Claims may be submitted by the employer or employee, depending on the case.
  4. Review and approval: SOCSO will review the claim. At this stage, they may conduct interviews or request additional documents to verify the case. Once approved, compensation or benefits will be credited directly into the claimant’s registered bank account.

Conclusion

SOCSO is a cornerstone of employee social security in Malaysia, providing essential protection against various unforeseen events. With the introduction of the Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM) from 1 June 2026, employees should understand not only the Employment Injury Scheme and Invalidity Scheme, but also the new non-employment injury protection and its phased contribution rates. By understanding your mandatory contributions, the respective employer and employee rates, and the benefits provided under each scheme, you can better understand your salary deductions and social security rights, helping you protect your financial security and overall wellbeing throughout your career in Malaysia.