SOCSO Extended To Foreign Worker January 1, 2019

The Cabinet has decided to place social security protection of foreign workers under the Social Security Organisation (Socso) effective Jan 1.

Human Resources Minister M. Kulasegaran said this was in line with the Equality of Treatment (Accident Compensation) Convention, 1925 (No.19) and Conference Committee on the Application of Standard under the International Labour Organisation (ILO), which Malaysia had ratified.

“Employers who hire foreign workers with valid documents including expatriates must register their employees with Socso and contribute to the Employment Injury Scheme under the Employees’ Social Security Act 1969 (Act 4).

“Benefits under the Employment Injury Scheme include Medical Benefit, Temporary Disablement Benefit, Permanent Disablement Benefit, Constant-Attendance Allowance, Dependants’ Benefit and Rehabilitation, as well as RM6,500 repatriation cost including funeral,” the minister said in a statement.

However, Kulasegaran added foreign workers would not be covered by the Invalidity of the Pension Scheme under Act 4.

“Employers can go to any of Socso’s 54 offices throughout the country including Sabah and Sarawak to register their foreign workers.

“The Ministry, together with Socso, will conduct engagements with the stakeholders soon.”

Malaysia was reported to be home to around 2.2 million foreign workers in 2017, with most of them hired in the agriculture and construction sectors, according to a report.

‘The State of Households 2018: Different Realities’ report published by Khazanah Research Institute noted that last year the two sectors employed 40.5 per cent of all foreign workers, although a sizeable number of them – at 35.9 per cent – were employed in services while the remaining 23 per cent in manufacturing.