Malaysia

Increase workers’ Socso contribution to fund no-fault accident coverage: MEF

Group says this is to ensure the no-fault accident coverage is financially sustainable

Updated 5 years ago · Published on 27 Oct 2020 11:00AM

Increase workers’ Socso contribution to fund no-fault accident coverage: MEF
The Malaysian Employers Federation has called for Socso to increase workers’ contribution to ensure funding for the no-fault accident coverage. – The Vibes file pic, October 27, 2020

by Amar Shah Mohsen

KUALA LUMPUR – Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan today proposed that workers’ Social Security Organisation (Socso) be on par with those made by employers.

His call comes after Socso’s proposed no-fault accident (NFA) coverage, when after implemented, will allow claims for injuries sustained in accidents occurring outside of employment. 

He said the increased contribution from workers will ensure the NFA coverage is financially sound.

At present, workers contribute 0.5% of their wages to Socso, all of which goes to the invalidity pension scheme. 

Employers, meanwhile, contribute 1.75% of workers’ salary, of which 0.25% goes to the invalidity pension scheme and the remaining 1.5% is for the employment injury scheme, which covers only work-related injuries. 

“We are not asking employees to increase their contributions for existing Socso schemes. So, it is not unreasonable to ask them to contribute an additional 1.25% of their salaries, on top of the current 0.5%, for the NFA coverage. 

“Bosses are already contributing 1.75% of workers’ salary to Socso. So, the rest of the contribution should come from the workers,” he told The Vibes. 

Shamsuddin was commenting on Socso’s proposed NFA coverage, mooted years back and currently in the midst of finalisation, that is expected to be implemented soon. 

He added the NFA coverage, once implemented, will address disputes pertaining to injury claims. 

“At the moment, if anything untoward happens beyond work hours, workers will not be able to apply for Socso claims. There have been many such cases in the past. 

“In order to reduce claim disputes and disagreements between the workers, employers and Socso, it is best to move forward with the NFA. It is critical.”

Shamsuddin, however, said there have been no formal discussions recently among Socso, and employers and employees groups, including MTUC, raising fears over how the NFA coverage would be implemented. 

He added the proposal for NFA was submitted to the Human Resources Ministry in 2017, yet the policy has not been implemented. 

This is despite 93% of bosses and workers surveyed by Socso then agreed to the NFA proposal.

Socso had told The Vibes that the NFA proposal has been submitted to the Human Resources Ministry, but did not provide a date of implementation.  

The agency’s capability to pay for claims once the NFA coverage is implemented has also come under question. 

The Malaysian Trades Union Congress had previously said Socso’s financial limitation was the reason why many claims by contributors were rejected, a notion that had been refuted by the agency.

Socso added it had no intention of increasing workers and employers contributions in the short term, considering the current economic slump due to the Covid-19 pandemic. – The Vibes, October 27, 2020

Related News

Malaysia / 10mth

Self-employed urged to be part of ‘Lindung Kendiri’ scheme

Malaysia / 1y

Increased tariffs will strain Malaysia-US ties, disrupt trade links

Malaysia / 1y

Sarawak to adopt Malacca model of community care for the elderly

Malaysia / 1y

Free medical treatment at panel clinics for Socso contributors

Opinion / 1y

Mental health issues can be caused by workplace stress

Malaysia / 1y

3 doctors, 30 others remanded for falsifying Socso claims

Spotlight

Malaysia

After Johor, the uncomfortable question for Anwar’s critics: Were we too impatient?

By The Vibes Says

Malaysia

Network School's business licences revoked, to cease operations tomorrow

Opinion

Orang Asli in Pahang: Token gestures or genuine recognition?

Malaysia

Tuition teacher sentenced to 105 years in prison and 70 lashes for raping daughter

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Aminuddin urges NS voters to weigh manifesto promising benefits for M40 and B40 groups

Malaysia

No need to resign, PM has absolute power if there is doubt – Ahmad Zahid

World

Gaza’s water crisis deepens as families face thirst, disease and collapsing sanitation systems

You may be interested

Malaysia

Aminuddin urges NS voters to weigh manifesto promising benefits for M40 and B40 groups

Malaysia

No need to resign, PM has absolute power if there is doubt – Ahmad Zahid

Malaysia

Voters place greater emphasis on government performance than traditional political assumptions - INSAP

Malaysia

Federal Govt passes RM83.46m in flood mitigation, coastal protection projects to Selangor

Malaysia

Man killed in hit-and-run crash while installing party flags in Rantau

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Good governance and political stability are essential for national prosperity, says Perak Ruler

Malaysia

Network School's business licences revoked, to cease operations tomorrow