If you work for a company, you may have noticed a SOCSO deduction in your payslip every month. All paid workers who have a contract with their employer, including temporary and part-time workers, must contribute to SOCSO.
You may know that SOCSO is a kind of insurance scheme, but do you know how it works or what benefits you can get from it?
SOCSO, or the Social Security Organisation (Pertubuhan Keselamatan Sosial – PERKESO) manages financial protection programmes for workers. Your monthly salary deductions for SOCSO go towards their Employment Injury Insurance and Invalidity Scheme.
SOCSO also provides the Self-Employment Social Security Scheme for self-employed workers as well as the Employment Insurance Scheme to give money to workers who lose their jobs for certain reasons.
Employment Injury Scheme
The Employment Injury Scheme gives medical and financial benefits to workers if they get into an accident or fall sick because of working. The protection covers:
- Industrial accidents like if you work in a factory or construction site
- Commuting accidents while you’re travelling for work, between your house and place of work or between your work and the place you eat while on meal breaks. But remember, you’re only protected for commuting accidents while you are travelling to or from work, and not if you decide to stop at the bank or post office after lunch!
- Accidents during an emergency at the workplace, like if you’re helping your co-workers leave the office building during a fire
- Occupational diseases such as loss of hearing from too much noise and asthma from breathing in too much dangerous chemicals or dust at the workplace
The Invalidity Scheme covers permanent disability which makes you unable to work and unable to earn at least 1/3 of the income you would have usually earned as a healthy person. Unlike the Employment Injury Scheme, the Invalidity Scheme covers workers even if they become disabled or pass away because of reasons not related to working.
What can you get from SOCSO?
The Employment Injury Scheme and Invalidity Scheme give short and long-term medical and financial assistance depending on how serious your illness or injury is. Your dependents will also get benefits if you pass away.
The specific benefits for each scheme are as follows:
|Employment Injury Scheme||Invalidity Scheme|
|1. Temporary disablement benefit:
2. Temporary disablement benefit:
3. Permanent disablement benefit:
4. Constant attendant allowance:
5. Physical/vocational rehabilitation:
6. Dependents’ benefit
7. Funeral benefit:
8. Education benefit:
For further details on Employment Injury Scheme, click here.
|1. Invalidity pension:
2. Invalidity grant:
3. Constant attendant allowance:
4. Survivors’ pension:
5. Funeral benefit:
6. Physical/vocational rehabilitation:
7. Education benefit:
For further details on the Invalidity Scheme, click here.
How do SOCSO contributions work?
Like EPF contributions, both employers and employees contribute a share to the employees’ SOCSO every month. The rate of SOCSO contributions is based on the following categories:
- First category: Payments to the Employment Injury Scheme and the Invalidity Scheme for employees younger than 60 years. Contributions will follow the schedule set out by SOCSO. If you haven’t reached 60 years, you’ll fall under this category, where your employer must contribute 1.75% of your monthly salary and you contribute 0.5% of your monthly salary according to SOCSO’s schedule.
- Second category: Workers who have reached 60 years to be covered under the Employee Injury Scheme only. If you’re 55 and just started working, you’ll fall under this category, where your employer must contribute 1.25% of your monthly salary based on SOCSO’s schedule.
Note that even though SOCSO has set the percentage of your monthly salary that you and your employer must contribute, the amount of monthly contributions are actually based on SOCSO’s salary table. In this table, or schedule, SOCSO has divided up different salary levels into a range.
For example, if you are in the first category and you earn between RM1,001 and RM1,100, SOCSO has identified that your employer will pay RM18.35 and you will pay RM5.25. If you earn between RM1,101 and RM1,200, SOCSO has set that your employer will pay RM20.15 and you will pay RM5.75.
You can refer to SOCSO’s table of contributions here.
You should also know that SOCSO contributions are only calculated up to a maximum monthly salary of RM4,000. So, if you make anything more than RM4,000, even though you still have to contribute to SOCSO and you’ll still get coverage, your contributions will follow the rate SOCSO has set for the over RM4,000 monthly salary range.
If you want to understand more about SOCSO contributions, you can click here.
Now you know what SOCSO is, the next time you look at your payslip, you’ll know what those deductions are for! Because SOCSO coverage is not as wide as normal insurance policies, your monthly payments are cheaper than insurance, but the SOCSO benefits would definitely be helpful if you ever need it.