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 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 safety protection.
“From 1971 until today, total contributions have risen by over 100 per cent but we have never raised the rate. During the implementation of the movement control order (MCO), Socso was one of the agencies that contributed the most amount of money for Malaysians,” he said.
He said this at a media conference after the signing of a Memorandum of Understanding (MoU) on Strategic Collaboration between his ministry and the Ministry of Entrepreneur Development and Cooperatives (Medac) 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 per cent of employer’s share and 0.5 per cent of employees’ monthly wages.
For employees who reach the age of 69, the rate of contribution is 1.25 per cent of their monthly wages, payable by the employer.
Saravanan urged Malaysians to contribute to Socso as it was the best product in the country to ensure a safety net protection for employees.
He said that, so far, Socso had benefited more than 2.72 million contributors.
Also present at the signing ceremony were Medac Minister Datuk Seri Wan Junaidi Tuanku Jaafar, Deputy Human Resources Minister Datuk Awang Hashim, Deputy Medac Minister Datuk Mas Ermieyati Samsuddin, Human Resources Ministry secretary-general Datuk Jamil Rakon and Medac secretary-general Datuk Suriani Ahmad.
Wan Junaidi said that, so far, a total of 93,000 entrepreneurs contributed towards Socso. — Bernama