SOCSO (Social Security Organization), also known as PERKESO is a government agency established on 1 January 1971. It is under Employees’ Social Security act of 1969 in the Ministry of Labor and Manpower.

It is mainly entrusted with the administration of two social security schemes which are:

  • Employment injury scheme. It covers and protects employees who suffer from employment injury. The coverage may include; road accidents, occupational illness and while carrying their duties.
  • Invalidity scheme. Provides insurance and protection to anyone considered to be suffering from the condition of permanent nature. The illness can either e incurable or not. Mostly, it provides coverage to a person who suffers an illness not related to his employment.

The main vision of this agency is to become a major and outstanding leader in social security by 2020. Additionally, its mission is to protect employees and their dependents through a social security scheme.

It is also working on increasing awareness of occupational safety as reflected by its functions below.

  • Registration of employees in different schemes.
  • Collection of contributions from both employers and employees.
  • It pays benefits to workers when tragedy strikes. It not only considers tragedy on duty and also in road accidents.
  • It provides physical and vocational rehabilitation benefits.
  • It promotes awareness of health and occupational safety that will ultimately improve Employees social well-being.

What are the advantages of SOCSO?

Malaysians who contribute to the Social Security Organization can claim for the benefits if they sustain either work-related injury or not. Here are major benefits that under the scheme you will never miss.

Invalidity pension

 It provides coverage to any permanent condition that is unlikely to be cured. The condition might have been caused in any circumstances even if it is not work-related.

The illness may include; cancer, mental health, heart attacks and also kidney failure. They are paid as long as the client is still suffering from the disease.

However, if the person dies, it is the dependents who solely enjoy the benefits of the fallen. Additionally, it is good to know that there is no age limit in enjoying these benefits.

Attendance Allowance

This allowance is paid constantly to any employees who suffer from an incurable disease like cancer. It is incapacitated to those who deserve constant checkups and attendance.

For that reason, the employee may be assigned a private nurse to cater to his or her health needs.

Survivor pension

It is mainly enjoyed by windows and children of the diseased. Anyone who dies irrespective of the cause is deemed to be issued Survivor pension.

The only specification is that provided the insured person died before attaining 60 years, will be eligible for the benefits after meeting certain criteria. Eligible dependents are entitled to receive a pension at the rate of 50%.

Injury on course of the duty

It simply means injury to an employee caused by either accident or occupational disease arising out of and in the course of his employment.

It mainly covers industrial accidents while carrying their duties, road accidents on a journey that is strictly related to his or her employment. Accidents claims should be lodged with the following documents:

  • A copy of identification card.
  • Original police report.
  • A copy of attendance record. The record must be signed by the employer and have a stamp.

For that reason, employers are required to submit the form and other important documents related to the same within two days for further verification.

Funeral compensation

The acts prescribe that only eligible persons will be paid funeral benefits. If the person is not present at such an event, it will be issued to the person who incurred expenditure for that employee.

Return to work program

It is an approach mainly taken to help an insured person with injuries or illness. It is given as soon as possible so that the person can recover and go on with his or her duties. If the person is completely paralyzed, he or she will be helped to secure a job that is suitable for him or her.

Educational benefit

As a SOCSO benefit, it comes regarding scholarships to beneficiaries based on a certain procedure. The requirements that are necessary include; less than 21 years and must not be married. The beneficiaries may be offered a scholarship to study at a high institution of education. These applications are made online at the official SOCSO website.

Rehabilitation facilities and dialysis

Employees with permanent disabilities are also catered for. Moreover, dialysis facilities have also been provided to cater for those with kidney failures. In short, every person’s needs in the scheme are catered.

What are the punishments of not contributing in SOCSO?

Every company is required to submit the form and remit their payments within the period provided. Failure to that the will result in:

  • Fines
  • The license of that company may be suspended.

Who will contribute to SOCSO?

Employers are required to pay a monthly fee for each eligible employer according to the rate specified by the act. The contributions are divided into two, namely:

  • The contribution of the first category. It is payable to employees who are less than 60 years. Their rate of contribution is about 1.75 of employer’s share.
  • The contribution of the second category. The rate of contribution here is normally 1.25 of employees’ wages. All workers who have reached the age of 60 must be covered under this category.


Employee’s social security act of 1969 was enacted to provide social security on certain contingencies and make other provisions related to it.


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