ABOUT SOCSO
Social Insurance Institution (PERKESO or SOCSO)
The Malaysian Social Insurance Institution provides two insurance plans, namely the Work Injury Insurance Plan and the Invalidity Retirement Pension Insurance Plan.
1. Work Injury Insurance
Assistance provided by the Work Injury Insurance Plan includes medical care, temporary loss of work capacity benefits, permanent disability benefits, frequent care allowances, survivor benefits, funeral subsidies, rehabilitation training benefits, and education aid benefits.
The above insurance plan covers accidents that occur during an employee’s daily commute from home to work and vice versa, round trips between the workplace and designated rest or meal times, and travel related to work.
Accidents that occur during work-related travel are covered by social insurance because the employee is considered to be injured on duty.
In addition, any accidents that occur while operating machinery at the workplace, accidents that occur during work or due to work-related activities, injuries sustained while saving people during an emergency at the employer’s home, and cases of infectious diseases contracted at work are all eligible for coverage if the conditions are met.
Employees who become deaf after working in a high-noise environment for a long time and sawmill workers who suffer from respiratory diseases due to long-term inhalation of dust are also covered under the plan, and there have been previous cases in this regard.
2. Invalidity Retirement Pension Insurance
This is a 24-hour insurance plan that provides coverage for employees, regardless of whether the disability, injury, or death is work-related. Disability is defined as a poor state of health where an employee is unable to receive medical treatment and is also unable to earn one-third of the income that a similarly qualified employee can earn.
Assistance provided by this insurance plan includes invalidity retirement pension, disability aid, frequent care allowances, survivor benefits, funeral subsidies, rehabilitation training benefits, and education aid benefits.
3. Social Insurance Death Benefits
Members who die as a result of work-related injuries or who die while receiving disability benefits are eligible for funeral assistance or an RM1,500 subsidy, whichever is lower.
According to the priority set by the authorities, the order of priority for funeral assistance is the deceased’s widow, and if there is more than one, the assistance is distributed equally among them, followed by the widower, eldest son, the eldest daughter, and parents. If both parents are alive, they will share the subsidy equally.
If there are no eligible family members, the funeral expenses will be paid to the person responsible for arranging the funeral, up to a maximum of RM1,500, with receipts required as proof.
How much will PERKESO compensate the insured?
1. Death during work
The insured's spouse or children will receive 90% of the insured’s salary as compensation each month, with a maximum monthly compensation of RM3,555.
2. Unable to work due to illness
The insured will receive 65% of their salary as compensation each month, with a maximum monthly compensation of RM2,567.50.
How to check if you are covered by the Social Security Organization (PERKESO)
Visit the following website to check if you are a valid member: http://esemak.perkeso.gov.my/
Employers should select “Majikan” (Employer), while employees should select “Pekerja” (Employee).
Enter your identity card number or employer ID.
That’s all. The employer should immediately send the injured employee to a government hospital and file a claim with PERKESO. The employee’s subsequent medical expenses and salary will then be covered by PERKESO, up to a maximum period.
The compensation an employee receives will depend on the following conditions:
The injured person must obtain a medical leave certificate from the hospital.
The salary received by the injured person is based on their average monthly salary before the injury, provided they were an employee of the company and the injury occurred during working hours.
If an employee is incapacitated due to a work-related injury, PERKESO will pay the employee a monthly salary until they recover or pass away.
Medical equipment and treatment costs are covered by PERKESO. A death benefit is also provided, and the salary will be paid to the spouse and children. Children may also receive university tuition fees or scholarships.
In the event of the member's death:
According to the PERKESO website, if a member dies during their period of coverage due to a work-related accident or permanent disability, the organization will provide a death benefit or cover funeral expenses, whichever is lower. However, the claimant must be the beneficiary nominated by the deceased member; otherwise, the payment will be given to the person arranging the funeral.
Unlike the Employees Provident Fund (EPF), which has an age limit for death and disability benefits, there is no age limit for PERKESO benefits.
How can beneficiaries apply for social security benefits for the deceased?
Complete the application form (Borang 26) and submit supporting documents.
Case Study:
A cameraman working for a television station was injured in a road accident while on assignment. The doctor issued him a medical leave certificate for two months. He faced the prospect of having to take unpaid leave.
Fortunately, he was aware of PERKESO benefits and immediately applied for temporary disability benefits. Within a month, he received more than RM2,000 in benefits, which helped cover his living expenses. Furthermore, for any individual who passed away after a certain year and was not yet a PERKESO member, their beneficiaries can still claim benefits from the social security scheme at any time, provided they have the deceased’s death certificate and marriage certificate. PERKESO calculates the compensation amount based on the year of death, and subsequently provides a monthly allowance of RM500 to the family.