Proposed Amendments to the Employee´s Social Security Act 1969

​​The Malaysian government plans to make significant changes to the Employees' Social Security Act 1969 through the proposed “Skim Lindung 24/7,” which aims to provide employees with round-the-clock social security coverage under PERKESO.

     

This initiative reflects the changing nature of work, where flexible and hybrid working models are blurring the lines between work and leisure time.

    

Currently, Social Security Organization (SOCSO) coverage is limited to incidents classified as “work-related,” including commuting accidents. Under the new program, coverage will be extended to non-work-related accidents, so that employees are insured 24 hours a day, 7 days a week, regardless of their location or activity. Benefits include medical care, disability compensation, benefits for dependents, and rehabilitation support.

   

With Skim Lindung 24/7, employers may have to pay higher contribution rates to fund the expanded coverage. While the exact figures have not yet been determined, companies should expect to make adjustments to their payroll budgets.

    

Employers should prepare for new reporting and administrative requirements, especially companies that employ expatriates, who are also covered by the scheme.

    

With this move, Malaysia joins the ranks of advanced economies that offer comprehensive social insurance. Employers can use this as a tool to attract and retain talent, demonstrating their commitment to the well-being of their employees.

    

As SOCSO also covers accidents outside of work, employers can expect a reduction in their liability for incidents outside the workplace, potentially leading to lower costs for private insurance or compensation claims.

     

The changes are expected to be presented to Parliament by December 2025. Employers should monitor the legal developments, review their personnel policies, and contact SOCSO to obtain guidance on compliance and changes to contribution payments.