KUALA LUMPUR – The Malaysian Trades Union Congress (MTUC) has warned that workers stand to suffer financially if their contributions to the Social Security Organisation (Socso) are increased to cover the proposed no-fault accident (NFA) coverage.
MTUC deputy president Mohd Effendy Abdul Ghani said while the coverage by Socso – which will allow claims for injuries sustained in accidents outside of employment – is welcome, the government should not heed a suggestion by the Malaysian Employers Federation (MEF) to raise employee contributions.
He said many Malaysians are already struggling to cope with the impact of the Covid-19 pandemic.
Any talk of an increase should only be considered after the country overcomes the health crisis and when the economy recovers, he added.
“At the moment, I completely disagree. Workers are already faced with a number of challenges, not least salary and allowances cuts. This is not the right time to even discuss the proposal by MEF.
“Any increase in the workers’ Socso contribution should also only be done after discussions with us (MTUC). For now, it should remain as it is,” he told The Vibes today.
Effendy was commenting on the suggestion by MEF executive director Datuk Shamsuddin Bardan that workers’ contribution be on par with that made by employers for the NFA coverage, which is currently being finalised.
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.
Shamsuddin had told The Vibes that the increase would be necessary to ensure the NFA coverage would be financially sound.
Effendy in turn argued that it makes no sense for Socso to even consider implementing the new coverage if it does not have the financial capability for it.
“Surely, Socso would have done its research. And it should have known that it can finance NFA if it is planning to expand the injury coverage.
“If it intends to expand coverage but also for workers to increase their contribution, then we can’t agree to it.”
Effendy, however, emphasised that it is high time for the government to implement the NFA coverage, considering many Malaysians are now working from home due to the Covid-19 pandemic. – The Vibes, October 29, 2020
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