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
