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For workers in Malaysia, monthly salary deductions are made and contributed to the Employees Provident Fund (EPF), the Employment Insurance System (EIS), and Social Security Organization or SOCSO. Most of you are familiar with the functions of EPF and EIS, but what about the function of SOCSO? What SOCSO claims can be made, and what role does SOCSO play in assisting workers in Malaysia?
What Protection Schemes are Offered by SOCSO?
Social Security Organisation (SOCSO), also known as PERKESO (Pertubuhan Keselamatan Sosial), primarily functions to provide social security protection to workers in Malaysia. It offers financial and medical assistance to workers who experience accidents or illnesses that prevent them from working.
In addition, PERKESO supports dependants through pensions in the event of the contributor’s death. The protection schemes offered by PERKESO are divided into three categories as follows:
- Employment Injury Scheme;
- Invalidity Scheme – 24-hour protection for workers against invalidity or death not caused by employment;
- Employment Insurance System – a financial assistance scheme that supports workers who lose their jobs until they find new employment.
For this article, the focus will be on the types of SOCSO claims that can be made under the Employment Injury Scheme.
What is the SOCSO Employment Injury Scheme?
The PERKESO Employment Injury Scheme provides protection to workers who suffer from accidents or illnesses caused by their work. For example, if a worker has an accident while commuting to their workplace, they are eligible to make a claim under the PERKESO Employment Injury Scheme.
If an accident occurs on a day off, it is not covered under the Employment Injury Scheme.
Types of SOCSO Claims Under the Employment Injury Scheme
There are several types of accidents or service-related illnesses that workers can claim for under the Employment Injury Scheme, including:
1. Accidents While at Work
Accidents that occur while the worker is performing work duties and/or at the workplace.
2. Accidents During Commuting
Accidents that happen while the worker is travelling to the workplace from home, or between the workplace and a meal break within allowed rest periods. This also includes travel related to work activities.
3. Accidents During Emergencies
Accidents that occur while the worker is within or near the workplace premises with the intention of rescuing, assisting, or protecting others in an emergency or danger.
4. Occupational Diseases
Diseases caused or resulting from work as listed in the Fifth Schedule of the Employees’ Social Security Act 1969. Examples of occupational diseases include:
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- Covid-19 (limited to occupations exposed to biological agents with infections among healthcare workers);
- Hearing loss due to continuous exposure to high noise levels;
- Asthma resulting from continuous exposure to dust or hazardous chemicals, among others.
Benefits Offered Under the PERKESO Employment Injury Scheme
Workers who contribute to this scheme are eligible for the following benefits:
1. Medical Benefits
Workers can claim free medical treatment at PERKESO panel clinics until recovery. If treatment is received at non-panel clinics, reimbursement for treatment costs can be claimed.
2. Temporary Disablement Benefits
Workers can claim Temporary Disability Benefits, which are paid throughout the period of sick leave certified by a doctor. The sick leave must be at least four days, including the day of the accident.
The daily rate is 80 percent of the worker’s average daily wage, with a minimum of RM30 per day and a maximum of RM132 per day.
3. Permanent Disablement Benefits
Workers can also claim Permanent Disability Benefits. Claims must be made within 12 months from the date of the last temporary disability.
The daily rate is 90 percent of the average daily wage, subject to a minimum of RM30 per day and a maximum of RM148.50 per day.
4. Constant-attendance Allowance
The Constant Care Allowance is set at RM500 per month for workers who have permanent disabilities and require assistance from others. However, eligibility for this allowance is subject to recommendations from the Medical Board or Special Medical Board or Workers’ Appeal Medical Board.
5. Physical/Vocational Rehabilitation Facilities
Workers can claim expenses for physical and vocational rehabilitation. Physical rehabilitation includes:
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- Physiotherapy;
- Occupational therapy;
- Reconstructive surgery;
- Prosthetic, orthotic, and other aids;
- Orthopedic supplies such as wheelchairs, crutches, hearing aids, glasses, special shoes, etc.
Vocational rehabilitation includes training in fields such as electrical work, sewing, radio/TV repair, typing, and more.
6. Dependants’ Benefits
If a worker dies due to an employment injury, dependants are eligible for Dependants’ Benefits. The daily rate paid by PERKESO is 90 percent of the worker’s average daily wage, subject to a minimum of RM30 per day and a maximum of RM148.50 per day.
7. Funeral Benefits
If a worker dies due to an employment injury, an amount of RM3,000 will be paid by PERKESO to the worker’s beneficiaries. If there are no beneficiaries, the benefit will be paid to the party who covered the funeral expenses.
8. Educational Benefits
Educational Benefits provide education loans to dependants’ children if the worker:
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- Dies due to an employment injury;
- Receives periodic payments under Permanent Disability Benefits.
Applications are subject to the terms and conditions set by PERKESO.
SOCSO Employment Injury Scheme: Future Protection for Workers
SOCSO contributions are crucial in providing you with additional protection against any risks while you are working or commuting to and from work. You can make SOCSO claims and benefit from the advantages offered under this scheme.
In addition to protection from accidents or illnesses during work hours, it’s also essential to ensure you have the best protection if an accident occurs outside of working hours. The ideal way to secure comprehensive coverage is by obtaining the best health insurance that will protect you in emergencies or difficulties.
For more information on medical and health insurance in Malaysia, visit the Qoala website. Qoala is a top platform for comparing and renewing insurance, offering guaranteed affordable insurance prices.
