SOCSO

A guide on Social Security Organisation (SOCSO) with the types of contribution and some of the benefits you might receive.

Types of Contribution
First category (employment injury scheme (EIS ) and invalidity pension scheme IPS ) — For employees below 55 years of age. The contribution is paid by both the employer and employee for EIS and IPS.

Second category (EIS only) — For registered employees above 55 years of age and still working; newly regi stered employees above 50 years of age; and for a previously insured person receiving invalidity pension who is still working and receiving wages which is less than one-third of the average monthly wage before invalidity. Under this category contributions are only paid by the employer for protection under the EIS.

Rate of Contribution
For the employment injury insurance scheme and the IPS, the employer pays 1.75% of remuneration up to a maximum of RM51.65 a month, while the employee pays 0.5% of remuneration up to a maximum of RM14.75 a month. This maximum is hit when wages exceeds RM2,900.

For the IPS only, the employer pays 1.25% of remuneration up to a maximum of RM36.90 a month, with no deduction from the employee. For ease of calculation, the exact contribution is slightly different from the intended 2.25% and 1.25% above, whereby contributions are determined in a tabular form depending on the level of wages.

Benefits
Depending on the type of scheme you are subscribed to, there are different benefits. However, there are three benefits that are the same no matter which scheme you are under:

Rehabilitation benefit. Facilities for vocational and physical rehabilitation are provided free of charge to an employee who suffers from invalidity as a result of a workplace accident.

All expenses incurred for these purposes will be borne by SOCSO based on rates and conditions determined by SOCSO. Physical rehabilitation includes:
• Physiotherapy.
• Occupational therapy.
• Reconstructive surgery.
• Supply of artificial limbs such as artificial leg, hand, eye, and dentures.
• Supply (as well as repair and replacement) of other orthopedic equipments such as wheelchairs, crutches, hearing aids, spectacles, calipers and orthopedic shoes.
• “Return to Work” programme. • Dialysis treatment for an employee receiving invalidity pension and suffering from a chronic kidney ailment.

Vocational rehabilitation includes vocational training in courses such as electrical wiring, tailoring, radio/ TV repairs, metal trade, refrigerator and air-conditioner repairs, plumbing, typing and secretarial work.

Funeral benefit. An amount of RM1,500 will be paid if an employee who was receiving invalidity pension dies for any reason. Payments will be made to the eligible next of kin; the benefit will be paid to the person who incurs the funeral expenditure. The amount paid will be the actual amount incurred or RM1,500, whichever is lower.

To apply and receive the cash benefit, the following documents and their certified copies must be completed and submitted:
• Claim form (Form 26).
• Death certificate.
• Other relevant documents which certifies the next of kin (bring along the original documents for SOCSO’s verification).

Education benefit. Dependents of an employee who is receiving monthly benefits from SOCSO may apply for certain education benefits in the form of loans of scholarships.