Malaysia

Govt looking into Socso contributions for self-employed, gig-economy workers

Existing law needs to be amended to guarantee interests of all workers, says human resources minister

Updated 5 years ago · Published on 24 Nov 2020 11:07PM

Govt looking into Socso contributions for self-employed, gig-economy workers
Datuk Seri M. Saravanan says the existing act has constraints and needs to be scrutinised and reviewed to enable workers such as bus drivers or those with their own businesses to obtain safety net assistance. – Bernama pic, November 24, 2020

KUALA LUMPUR – The Human Resources Ministry plans to make it mandatory for all workers, including self-employed and gig-economy workers, to contribute to the Social Security Organisation (Socso).

Human Resources Minister Datuk Seri M. Saravanan said the existing Self-Employment Social Security Act 2017 (Act 789) must be amended to enable the safety and interests of workers in the sectors concerned to be guaranteed.

“Many do not realise they are contributing. There are Malaysians who think that Socso only provides assistance in the event of an accident at work. That is not necessarily so," he told reporters today.

“There was a case where the husband died and the wife received 90% of the final salary amounting to RM4,000.

“If he contributed to Socso, the wife would get RM3,600 per month as well as additional educational assistance for children under 21. Meanwhile, the husband who is cared for by the wife due to an accident also gets a monthly contribution.

“As the human resources minister, I wish to make Socso contributions compulsory for all walks of life, including the self-employed and gig-economy workers.

“’The important thing is that we need to change the act, with some time for the people to give their support."

Saravanan said the existing act had constraints and needed to be scrutinised and reviewed to enable workers such as bus drivers or those with their own businesses to obtain safety net assistance.

“During the movement control order period, almost most of the B40s did not have any safety nets. Socso has begun to study and examine the existing act in order to enable workers such as bus drivers or those with their own businesses to get assistance.

"Although we as ministers are ready to help, we are constrained by the existing act. I have asked Socso board members to study it, and we will take it to the cabinet committee to make changes and then bring it to Parliament to change it,” he said. – Bernama, November 24, 2020

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