Beginning July 1, the person termed ‘employee’ in a husband-wife business partnership will receive Social Security Organisation (Socso) protection.
Human Resource Minister, M. Kulasegaran believes the recognition will benefit 34,000 people. The ruling will be enforced after amendments are made to the Employees’ Social Security Act 1969 (Act 4) and Employment Insurance System Act 2017 (Act 800).
"Right now, the provisions in both acts deny the husband or wife in a business partnership who is considered a worker, benefits under Socso’s schemes. But the situation can be set right after a ministerial directive has been gazetted,” said Kulasegaran at a press conference following a Socso iftar (fast-breaking) event today.
The minister said with the amendments, a business owner would need to register the business and the spouse hired as worker, with the Socso contributions made monthly or for a stipulated period.
Kulasegaran said contributions would be done in the same way as someone receiving a salary, which is 1.25 per cent from the employer and 0.5 per cent from the employee to qualify for protection under the Employee Injury Insurance Scheme and the Disability Scheme.
The contribution under the Employment Insurance System Act is 0.2 per cent from the employer and 0.2 per cent from the employee.
The Ministry of Human Resources is also planning to present a working paper to the Cabinet on allowing an estimated 1.4 million housewives, single mothers and widows to benefit from Socso coverage.
On a different topic, Kulasegaran disclosed that 95,575 taxi drivers out of 100,000 had yet to register under the Self-Employment Injury Scheme which went into force on June 1.
Therefore, Socso plans to call for discussions with the Transport Ministry to make it mandatory as a condition to renew the public transportation permits.
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