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
