KUALA LUMPUR – The Human Resources Ministry is studying the need to raise Social Security Organisation (Socso) contributions under the Employees’ Social Security Act 1969 (Act 4) without burdening the people.
Its minister Datuk Seri M. Saravanan said the contribution rate had never been raised since 1971, the year the agency was established, adding that his ministry found the demand for contributions had increased from all job sectors, including from the informal sector.
“The people are more aware of the benefits (of Socso contributions) because they provide safety and protection. I believe the situation calls for a slight increase that will not burden the people...maybe we can increase it by RM1 or RM2 to further widen the protection.
“From 1971 until today, the total contributions have risen by over 100%, but we have never raised the rate. During the implementation of the movement control order, Socso was one of the agencies that contributed the most money to Malaysians,” he said.
He said this at a media conference after the signing of a memorandum of understanding on strategic collaboration between his ministry and the Entrepreneur Development and Cooperatives Ministry here today.
Based on the Employees’ Social Security Act 1969, workers’ contributions are divided into two categories.
For those aged below 60, contributions payable by employers and employees are for the Employment Injury Scheme and the Invalidity Scheme, with the rate of contribution comprising 1.75% of the employers’ share and 0.5% of employees’ monthly wages.
For employees who reach the age of 69, the rate of contribution is 1.25% of their monthly wages, payable by the employer.
Saravanan urged Malaysians to contribute to Socso as it was the best product in the country for ensuring a safety net for employees.
He said that, so far, Socso had benefited more than 2.72 million contributors. – Bernama, March 10, 2021
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