Malaysia

SOCSO moves to stem female workforce exit with new post-maternity allowance

A social security-led reform aims to ease cost pressures on new mothers while extending protection to cross-border workers under a broader labour market strategy

Updated 3 months ago · Published on 02 May 2026 5:17PM

SOCSO moves to stem female workforce exit with new post-maternity allowance
The initiative follows concerns over a slight drop in labour force participation among women, partly attributed to maternity-related responsibilities - May 2, 2026

THE Social Security Organisation (SOCSO) has unveiled a series of labour market measures centred on the introduction of a Post-Maternity Leave Allowance, in a bid to reverse declining female workforce participation and strengthen social protection coverage.

The new allowance, known as the Post-Maternity Leave Allowance (EPCB), is designed to support women returning to work after childbirth by easing financial pressures during extended leave.

The initiative follows concerns over a slight drop in labour force participation among women, partly attributed to maternity-related responsibilities.

Prime Minister Datuk Seri Anwar Ibrahim, in his Labour Day 2026 address on Friday, described the move as a progressive step aligned with international benchmarks set by the International Labour Organisation.

SOCSO said the scheme adopts a “liability-sharing” model, in which social security funds absorb part of the cost burden during additional leave, minimising disruption to employers while safeguarding employee welfare.

Similar frameworks are already in place in countries including Spain, Portugal, France and China.

“The implementation of this is not only critical in preserving the health of pregnant women but also serves as a buffer against the tendency of women to leave their careers after childbirth due to the rising cost of living for families.

“As the main driver, SOCSO is determined to make the EPCB a cornerstone for a more inclusive, fair, and progressive Malaysian labour market,” the agency said in a statement.

The benefit will be introduced through amendments to the Employment Insurance System Act 2017, forming part of a wider effort to modernise labour protections.

Alongside the maternity initiative, SOCSO highlighted the rollout of its Traveller Scheme under the Self-Employment Social Security Protection Act 2017, aimed at addressing longstanding gaps in coverage for cross-border workers.

“This measure is expected to protect around 1.6 million individuals, including nearly 480,000 workers who commute daily through the Johor Causeway, to ensure they receive appropriate protection from previously unmanageable risks.

“This is not just an extension of the scheme, but rather a manifestation of support for the sacrifices of hundreds of thousands of workers who face high risks for their survival,” the statement said.

The agency added that operational systems have been streamlined to ensure both initiatives are implemented efficiently in line with the MADANI government’s policy agenda.

“SOCSO is now at the highest level of readiness to implement the mandate to ensure that every improvement has a tangible impact on the well-being of the people,” it said.

The combined measures signal a broader push to balance economic growth with social equity, as Malaysia seeks to retain female talent in the workforce while extending protection to vulnerable and mobile segments of its labour force. - May 2, 2026

Spotlight

Malaysia

DAP NS throws support behind Loke, urges him to stay as chief

Malaysia

Tuanku Muhriz urges MB, assemblymen to uphold loyalty to royal institution

Opinion

Negeri Sembilan election: Just a return to historical trends

Malaysia

Ismail Lasim sworn in as Negeri Sembilan's 12th Menteri Besar

Opinion

Negeri Sembilan has spoken. Now, there must be humility to listen

By Vinod Sekhar

Malaysia

Viral Port Klang road rage video prompts police probe into street altercation

Malaysia

Selangor to overhaul stray animal enforcement procedures after dog's death sparks investigation

You may be interested

Malaysia

PRNNS: PH’s Chew Seh Yong takes commanding lead in Lobak

Malaysia

PRNNS: Anwar congratulates BN on victory, stresses continued federal support

Malaysia

PRNNS: Voter turnout outpaces 2023 polls as of noon

Malaysia

Saleswoman loses RM290,910 to investment scam before falling prey to fake recovery agent

Malaysia

PRNNS: Voter demographics drive choice of OCR-VA pilot site

Malaysia

PRNNS: Jalaluddin Alias retains Pertang seat

Malaysia

PRNNS: BN-PN win 25 seats (unofficial)

Malaysia

Malaysians allegedly exploited in Taiwan as MHO seeks government intervention