Pertubuhan Keselamatan Sosial (PERKESO), also known as SOCSO, is the Malaysian Social Security System, which provides financial assistance to employees and their families in the event of an accident.

The employer is responsible to register new employees within 30 days of start date and ensure all employees are registered.

Employment Provident Fund (EPF) also benefits employees. Mostly for retirement purposes, but EPF also provides different withdrawal schemes. EPF has two types of mandatory individual accounts. Once finances old-age, disability, and survivor benefits and the purchase of approved investments; the second finances old-age, disability, and survivor benefits, the purchase of a house, education costs, and designated critical illnesses.

Social Security Contributions in Malaysia

The contribution to both SOCSO and EPF are compulsory.

SOCSO funds are supplied by both the employer and the employee. The monthly amount depends on the employee's earnings. However, only Malaysian citizens and permanent residents are eligible to contribute and benefit from SOCSO. Business owners, domestic servants, foreign workers, and government employees are exempt from paying SOCSO. Both only cover contributions to age 55.

For more information, check out the official Social Security Organization (PERKESO) website.

Social Security Benefits in Malaysia

Disability Benefits in Malaysia

The SOCSO covers industrial accidents, occupational diseases, accidents, invalidity or death. The SOCSO offers two insurance schemes: The Employment Injury Insurance and Invalidity Insurance.

The rate of employer's contribution is 1.75% of the employee's monthly wage for both schemes, while the employee contributes 0.5% to Invalidity Insurance only.

The employer contributes RM 86 for each foreign worker per year to this scheme which covers employment as well as non-employment injuries of the foreign worker.

Medical Benefits in Malaysia - EPF

The Employment Provident Fund, known also as Kumpulan Wang Simpanan Pekerja, was introduced as a savings scheme which covers pension funds, but now employees may withdraw savings for specific purposes, such as medical purposes.

The employer pays a contribution rate of 12% of the workers monthly wages, while the employee contributes 11%. Foreigners holding an Employment or Visit Pass with a monthly salary that exceeds RM 2500 are exempted from the compulsory contributions.

Maternity Benefits in Malaysia

Pregnant women are eligible to maternity benefits from any day within 30 days before the date of childbirth. They are entitled to 60 paid days during the maternity leave. The female employee is receives maternity benefits if she has been employed for at least 90 days within the four month period preceding the childbirth and she must not have more than 5 children.

Female employees may be entitled to more than the two-month maternity leave if the employee:

• Works in the civil service. Then they can apply for additional five years of unpaid leave after their maternity leave.
• Works in the banking industry or some state government agencies. Then they may apply for 90 days of maternity leave.
• Works for a multinational company that provides more than 90 days of maternity leave.

As for paternity leave, there are no existing laws in Malaysia. There are employers that recognize and offer benefit to male employees. It is best to refer to your employment contract or discuss the matter with your company HR Department.

While on maternity leave, female employees cannot be fired or be given notice of termination. Consult with your company's human resource department to confirm the details of your maternity leave.

Statutory Sick Pay in Malaysia

An employee is covered by the Employment Act of 1955 if they have entered a contract position and monthly wages do not exceed RM2,000. All other employees are not covered by the Employment Act.

EA Employees are entitled to paid sick leave in accordance to their length of service with the company:

• Less than 2 years of service: 14 days
• More than 2 years, but less than 5 years of service: 18 days
• More than 5 years of service: 22 days

EA Employees are also entitled to 60 days paid sick leave if hospitalization is necessary, however EA Employees are only entitled to 60 days paid sick leave in one calendar year.

In order for an EA Employee to be entitled to their sick leave, they must first be examined by a registered medical practitioner or dental surgeon and be certified as being ill enough to require sick leave. Absenteeism without permission or without reasonable excuse could justify termination of employment.

As for Non-EA Employees, sick leave benefits and requirements are governed by what is stated in their contract of employment or company policy.

National Insurance Number in Malaysia

The National Registration Identification Card is issued to citizens and permanent residents on MyKad, the compulsory identity document for Malaysian citizens aged 12 and above.

Check the government website for more information about obtaining your card.

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