SOCSO (Pertubuhan Keselamatan Sosial or PERKESO) is Malaysia's social security system protecting employees against employment-related injuries and providing invalidity pensions. Both employers and employees contribute to this mandatory scheme.
Coverage Schemes
SOCSO operates two main schemes: the Employment Injury Scheme covers work-related accidents and occupational diseases, providing medical benefits and temporary or permanent disability payments. The Invalidity Pension Scheme provides pensions for non-work-related invalidity and survivors benefits.
Contribution Rates
Employers contribute more than employees to SOCSO. Rates depend on the employee's monthly wages and which schemes apply. Employees earning above a certain threshold may only be covered for employment injury, not the invalidity scheme. Contributions are capped at a maximum wage ceiling.
Recent Expansions
SOCSO has expanded coverage to include self-employed individuals and domestic workers through various programs. The Employment Insurance System (EIS) was added to provide unemployment benefits. Foreign workers have separate coverage requirements under SOCSO.