A Complete Guide to SOCSO

SOCSO is short for Social Security Organization. It is also known as PERKESO, which stands for Pertubuhan Keselamatan Sosial. SOCSO/PERKESO is a Malaysian government agency established in 1971 by the Ministry of Human Resources. According to the Employee's Social Security Act 1969, it is mandatory for private companies in Malaysia to register with SOCSO within 30 days starting from the day the first hired staff joins the company.

 

Additionally, the employer and the employee are responsible for contributing to SOCSO payments, with the employee contributing to a smaller percentage of 0.5% - 3% of their earnings. That said, the employee's contribution will become optional if their salary payments exceed RM3000 per month. Companies must be registered under SOCSO. Therefore, employers that do not register under SOCSO or do not contribute to the employees are subjected to fines and possible prison time.

 

What Is The Purpose of SOCSO?

The purpose of SOCSO is to give cash payments and benefits to employees as a form of social security protection within the private sector. These benefits and payments are given in the event of emergencies, workplace accidents, occupational diseases or even death.   

 

Who Is Qualified for SOCSO Coverage?

Employees below 60 working in private sector companies with a monthly salary are entitled to be covered by SOCSO. With that being said, if the employees belong to one of the following categories, you are not eligible for SOCSO coverage:

1. Federal and State Government, permanent employees

2. Domestic servants

3. Self-employed

4. Spouse of a sole proprietor or partners

 

What Are The Available Benefits of SOCSO?

SOCSO is divided into two protection schemes for registered members. 

 

1. Employment Injury Scheme

Based on the SOCSO website, this scheme provides security and protection to employees against accidents or occupational hazards/diseases caused by or during the duration of their employment. The Employment Injury Scheme covers industrial and commuting accidents, accidents during emergencies and occupational diseases. These are the benefits offered by this particular scheme:

a. Medical benefit

b. Temporary disablement benefit

c. Permanent disablement benefit

d. Constant attendance allowance

e. Facilities for physical and vocational rehabilitation

f. Return to work program

g. Dependents' benefit

h. Funeral benefit

I. Education benefit

 

2. Invalidity Pension Scheme

The Invalidity Pension Scheme provides 24-hour coverage against invalidity. A morbid condition that is impossible or unlikely to recover is considered invalid. Some examples include cancer, terminal diseases and stroke, which prevent them from earning a living. These are the benefits offered by this scheme:

a. Invalidity pension

b. Invalidity grant

c. Constance's attendance allowance

d. Survivors' pension

e. Funeral benefit

f. Facilities for physical or vocational rehabilitation and dialysis

g. Return to work program

h. Education benefit

 

How To Submit Your SOCSO Claim

In the case of occupational-related injuries or death, the employees or their family members should get the claiming process started as soon as possible. In most cases, the human resource department of the company where the employee works will facilitate the procedure for conducting a SOCSO claim. This is why it is essential to discuss with the company first for further details. Nonetheless, a better understanding of the process will help significantly and lessen the probability of denied claims. These are the crucial steps employees must know for a successful SOCSO claim:

 

1. For an employee applying for medical benefits for the first time, there are required documents that need to be submitted, which include the following:

a. Accident Report Form 21 or occupational diseases report Form PKS 68 or PKS 69

b. Claims form (Form 10)

c. Employer's identification letter

d. Work attendance record

e. Medical leave certificate

f. Employee's identity card (photocopy)

g.  A police report and a sketch map of the journey (for accidents happen while travelling to or from the workplace)

 

2. For non-SOCSO panel treatments, additional documents will be needed to get a reimbursement. The employee will have to submit the filled documents at their local SOCSO office. SOCSO will then determine the rate of reimbursement entitled by the employee. The additional documents are as follows:

a. Reimbursement Travel Claims Form – Form PKS (P) 24

b. Reimbursement Payment Claim Report (general) – Form PKS (P) 26

c. Receipt of treatment (original)

d. Appointment card (photocopy)

e. Medical report, if any (photocopy)

 

3. It is worth noting that once the medical doctor has proven and certified an employee as unfit to work for a minimum of 4 days, including the day of the accident happening at the workplace, they will be entitled to a temporary disablement benefit. This means the employee shall receive a monetary payment when they are unfit to work.

 

4. Regarding invalidity, an employee who suffers from lasting or permanent disabilities because of work accidents, regardless of their ability to perform the duty, is eligible to claim permanent disablement benefits. In this case, they will have to make a written application at the SOCSO office with the medical board's reference. Required documents to be brought along for this claim includes:

a. Medical report for a hospital or a clinic where the employee was treated

b.Application form

c. Identity card (photocopy)

d. Claim form (Form 10)

e. Form PKS (F) 1 with SOCSO contribution details and salary statement

f. Employee's account details for direct deposit of benefits

 

The benefit rate is 90% of their daily wages, ranging from a minimum of RM10 to RM88.50 per day. Employees can choose to work while receiving the permanent disability benefit. The Medical Board will decide on how the benefits are paid. Suppose the employees are not satisfied with the arrangement. In that case, an appeal can be filed to the Medical Appeal Board within 90 days, starting from the date of notification.

 

5. Employees should get an allowance for constant attendance if they have lost 100% of their ability to work and earn a living cause of workplace accidents. These employees are the ones who suffer permanent disability or are considered invalid and are certified by the Medical Board in Malaysia. These employees shall get an allowance of 40% of their total salary, capped at RM 500 per month.

 

Why Is It Important to Educate Yourself on SOCSO?

Employees are exposed to many risks while performing their duties in the workplace. SOCSO is meant to help, support and protect employees and their families who are going through injuries and death that have caused them to lose their income. Therefore, everyone must understand how these benefits work and when they are entitled to them so they can protect themselves and their families.

 

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