Employee,Employer

SOCSO: Frequently Asked Questions (FAQs)

1)Who is classified as an employee under the Employees’ Social Security Act, 1969?
An employee is any person who is employed for wages paid under a contract of service or apprenticeship with an employer, whether the contract is expressed or implied, or oral or in writing, or in connection to the work of an industry to which the Act applies.
2)Are temporary workers / part time workers covered by SOCSO?
Temporary or part time workers are required to be registered with SOCSO.
3)Does the employer need to notify SOCSO if the employee stops working?
The employer must fill in the date of termination of the employee in form 8A and mark “X” in the space provided.
 4)What is the age limit for employees to contribute?
All employees are eligible to be registered, regardless of age. For workers aged 60 years and below, the employer must make contributions under the first category, but when the employee reaches 60 years of age, the employer will only pay contributions under the second category. Employees who join the workforce when they are above 55 years of age and who have never contributed must pay a contribution of the second category.
5)Are penalties imposed on employers who fail to register / contribute?
Employers may be prosecuted and shall be punishable with imprisonment for a term which may extend to two years, or with a fine not exceeding ten thousand ringgit, or both.
6)How is the mode of payment and contribution to SOCSO determined?
Employee contribution rate is based on the employee’s wages, overtime, commissions, service charge, annual leave emoluments, sick leave, maternity leave, public holidays, incentives, meal allowance, cost of living and housing allowance and so forth. All payments whether hourly, daily, weekly or monthly-rated are considered wages. Monthly contribution rates for employers and employees is shown in the Contribution Schedule based on 34 salary categories.
 7)Where can the payment of contributions be made?
Contribution payments can be made at all SOCSO offices and also at appointed banks such as Maybank Bhd, CIMB, Public Bank, RHB, post offices (for Sabah & Sarawak) and designated banks in specific areas.
 8)How can SOCSO contributions be made if the employee stops working in the middle of the month?
Employers are only required to pay contributions based on the total wages paid to employees for the month. However, if the salary is paid until the 15th day of the month, the contribution is based on salary paid for that particular month.
9)When is Interest on Late Payment Contributions (ILPC) applied to the employer?
The employer is liable to pay monthly contributions not later than the last day of the following month. For example, January contributions should be paid not later than February 28. ILPC is charged for late payment of contributions at the rate of 6 percent per annum for each day of late payment contributions. If late payment interest is calculated to be less than RM5, then interest is charged at RM5 per month.
10)How is the ILPC paid?
ILPC can be paid at RHB Bank and Public Bank by submitting an ILPC statement to the bank to stamp the date received and by stating the SOCSO account number. Employers are not required to fill in bank slips. Late payment cheques for each month (ILPC ) is issued separately. ILPC can also be paid at all SOCSO offices.
11)How do we report an accident and what are the documents needed to make a claim?
For accidents at the work place, the employer has to notify SOCSO by filling in the Accident Report (Form 21) and submit a claim form (Form 10), punch cards or attendance records, medical certificate and a copy of the identity card to the SOCSO Office. If the accident occurs while commuting to and from work, these documents must be accompanied by a police report and sketch map of the route taken at the time of accident.
12)Does SOCSO bear the cost of medical treatment? Where can treatment be obtained?
Any employee who is involved in a work-related accident, commuting accident or has occupational disease is entitled to free medical treatment at SOCSO panel clinics, government clinics and government hospitals. Employees are required to bring the Accident Report Form (Form 21) or Occupational Disease Report Form (Form 68 SMEs or SME 69) or a referral from the employer for the treatment.
13)Who is eligible for Constant Attendance Allowance?
This allowance is paid to an employee who suffers total permanent disablement or is severely incapacitated with a 100% loss of earning capacity or certified invalid and constantly requires personal attendance. His need for a care giver must be verified by a Medical Board or Appellate Medical Board. This allowance is equivalent to 40% of permanent disability benefits or invalidity pension and is subject to a maximum rate of RM500 per month. Payment is made directly to beneficiaries.
Source: Pertubuhan Keselamatan Sosial

 

Register Your New Company (Sdn Bhd) for just RM1,460 only!Click Here for More Details
CLOSE
CLOSE
Daftar Syarikat Sdn Bhd dengan hanya RM1,460!