SOCSO

SOCSO

INTEREST ON LATE PAYMENTS OF CONTRIBUTIONS

TYPES OF PROTECTION SCHEME

CALCULATIONS OF SOCSO

1. Employment Injury Insurance Scheme

2. Invalidity Pension Scheme

REQUIREMENT TO BE A MEMBER

• SOCSO was set up in 1971
• SOCSO or Pertubuhan Keselamatan Sosial (PERKESO) provide social security protections by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees.
• To reduce sufferings and to provide financial guarantees and protection to the family.

• An employee must be employed under a contract of service or apprenticeship
• Earns monthly wages of not more than RM3000
• A member must be registered and contribute to SOCSO regardless of his employment status whether it is permanent, temporary or casual in nature

Employers who fail to pay the monthly contribution within the specified period will be liable for ILPC as stipulated under Regulation 33 of the Employee's Social Security (General) Regulations, 1971.

The interest imposed will be imposed at a rate of 6% per annum in respect of each day delayed or default in payment of contribution after the given period ends provided that:-

If the amount of interest calculated is less than RM5.00, then the interest payable shall be RM5.00 in respect of each month part of month.

If the month of interest exceeds RM5.00, then the interest payable shall be calculated to the next highest multiple of RM5.00 in respect of each month or part of a month.

Example:

Salary = RM1000.00

Overtime Payments =RM 250.00

COLA= RM 100.00

Total Salary =RM1350.00Contribution to be paid to SOCSO is RM30.40 (Refer the Attachment A-Contribution Table)

However, the following payments are not considered as wages:

• Payments by employer to any pension or provident fund for employees 

• Mileage claims 

• Gratuity payment(s) for dismissal or retrenchments 

• Annual bonus

GROUP 7

EMPLOYMENT INJURY SCHEME

METHODS OF CONTRIBUTION PAYMENTS

EXAMPLE

Provides protection to employees who suffer from accidents arising from work.

COVERAGE

1. Remittance of payment through commercial bank

2. Payment Via Internet Banking

3. Payment At SOCSO's Office

BENEFIT PROVIDED

FATIN AQILAH BT ANUAL

(2012275316)

SYED ABDUL HADI BIN SYED ABDILLAH (2012282108)

'ATIQAH BT AHMAD FAUZI (2012895984)

ALIA SAMIHAH BT MD SOH (2011378913)

MOHD HANIFF BIN MOHD HERMI

(2011968475)

• Accidents which occur while in the course of the work

• Accidents which occur while traveling

• Accident during an emergency

• Occupational Disease

1. Medical Benefit

2. Temporary Disablement Benefit

3. Permanent Disablement Benefit

4. Funeral Benefit

5. Education Benefit

Example 1:Employer has paid contribution for the month of February 2006 amounting RM50.50 on 15.5.2006.

Method of calculation:RM50.50 X 6% X 30/365  = RM0.249 (ILPC being charged is RM5.00)

RM50.50 X 6% X 15/365  =  RM0.125 (ILPC being charged is RM5.00)

Employer has delayed for 45 days and the total amount of ILPC payable are RM10.00.

SOCSO CONTRIBUTION TABLE

EMPLOYERS

SOCSO CONTRIBUTION

1. Principle Employer

2. Immediate Employer

3. Employer's liability

• A principal employer must make a monthly contribution for each eligible employee.
• The employee’s share of 0.5 % of wages should be paid for coverage under the Invalidity Pension Scheme.
• The employer will pay 1.75 % for the Employment Injury Insurance Scheme and Invalidity Pension Scheme.

EMPLOYEES

1. Employees Monthly Earning at RM 3,000 or less.

2. Employees Monthly Earning More Than RM 3,000

3. Principle of "Once In Always In"

Employer Cease Operation

Employer who cease their operation or retrench all their employess must fill up Form 1A within 30 days before their operation end and send it to the nearest Socso office.

SOCSO AND CALCULATIONS

PENALTY

Under the Employee's Social Security Act, 1969, an employer may be fined not more than RM10,000 or two years' imprisonment or both if he is found guilty for the following offences:-

1. Default or delay in registering the business /company.

2. Default or delay in registering eligible employees.

3. Default or delay in paying monthly contributions.