New update in Socso Table 2022 for Payroll System Malaysia
Socso Table Malaysia was mandated to administer and enforce the Employees’ Social Security Act 1969 (Act 4) and Employees’ Social Security General Rules 1971, Self-Employment Social Security Act 2017 (Act 789) and Employment Insurance System Act 2017 (Act 800) EIS Table.
Foreign workers are covered under Act 4, while self-employed individuals are covered under Act 789. These groups are only eligible for the Employment Injury Scheme.
The Employment Injury Scheme and the Invalidity Scheme under Act 4 allow Socso Malaysia to provide free medical treatment, facility for physical or vocational rehabilitation, and financial assistance to employees if the accidents or diseases have reduced their abilities to work or rendered them incapacitated. If an employee dies, his/her dependents are provided for financially through pensions.
Core Principles of Socso Malaysia
i)Â Solidarity Fund
Solidarity is the cardinal value of social protection. In practice, it is a series of mechanisms for the redistribution of income towards people who are disabled or invalid and families with dependant children. Generally, contributions made by its members to SOCSO channelled to the solidarity fund.
The determining factor when calculating the quantum for an employee to contribute is based on an employee’s monthly salary. Through this understanding, employees share the same level of exposure and risk sharing regardless of industry in which they operate in.
Sharing of risk in this context brings the understanding that all contributors agreed and united in allowing SOCSO to use the solidarity fund to to pay benefits to employees who suffer disability or invalidity and pension to dependants in the case of death.
For employees who have not received any benefits until retirement, they actually helped other employees who suffer disabilities or invalidity and help families who have lost members due to death.
In the long term, this may also be happening to their families. At that time with the same concept in which the retiree contributions and other contributors also been used to help their families based on the core principles of ‘solidarity fund’.
ii) Replacement of Income
This principle applies when determining the amount of benefit payments. It is related to the amount of contributions paid based on the employees’ salary. This concept is to ensure that the employees do not feel financially affected if they have disabilities or invalidity. In the case of death of an insured person, replacement of income is provided to dependants through monthly pensions.
iii)Â Equality
The fundamental basis of this principle is within the Act and Regulation itself. By virtue of the concept of social justice, the coverage of the scope must encompass all employers and employees registered to SOCSO Table 2022.
Through this concept, prevention of accidents with the objective of zero accident and foster a culture of healthy lifestyle should be implemented because the real definition of social security is keeping employees in the workforce until retirement.
If this can be done, the real income of an employee would be higher, in line with the new economic model that focuses on high income society. This concept also provides space and opportunity for a motivated employee to return to work. Rehabilitation is also given to employees who suffer disability and invalidity.
In conclusion, payment of benefits made to eligible employees or dependants under the Employees’ Social Security Act 1969 and Employees’ Social Security (General) Regulations 1971.
This is to ensure that fairness and equality to all employees are achieved to those that have contributed to the solidarity fund. In the spirit of fairness, service is rendered with the aim to delight the customer and to go beyond their expectations. To this end, SOCSO endeavours to execute benefit payments as fast and accurate as possible.
Functions of Socso Table 2022
The functions of SOCSO (PERKESO) are as follows:
Employment Injury Scheme in Socso Malaysia 2022
Employment Injury Scheme provides protection to an employee against accident or an occupational disease arising out of and in the course of his employment. The protection under this scheme covers the following:
- Industrial accident
- Commuting accident
– on a route between his place of residence or stay and his place of work
– on a journey made for any reason which is directly connected to his employment
– on a journey between his place of work and the place where he takes his meal during any authorized recessNote : An accident that occurs during any interruption or deviation shall not be deemed to arise out of and in the course of his employment. - Accident during emergency
Accident which occurs during an emergency at the employer’s premises while in the course of assisting, rescuing, or protecting other people from disaster or danger during an emergency. - Occupational diseases
Diseases resulted from his occupation as described in the Fifth Schedule of Employees’ Social Security Act 1969.
Amongst the occupational diseases include:Â
- Loss of hearing due to continuous excessive noise exposure
- Occupational asthma due to work involving constant exposure to the inhalation of dust or harmful chemical and etc
Benefits under The Employment Injury Scheme
- Medical Benefit
- Temporary Disablement Benefit
- Permanent Disablement Benefit
- Constant-attendance Allowance
- Facilities for Physical / Vocational Rehabilitation
- Dependants’ Benefit
- Funeral Benefit
- Education Benefit
Invalidity Scheme for Socso Malaysia 2022
 An Insured Person shall be considered as suffering from invalidity by reason of specific morbid condition of permanent nature either incurable or is not likely to be cured and no longer capable of earning, by work corresponding to his strength and physical ability, at least 1/3 of the customary earnings of a sound Insured Person.
The scheme provides 24-hour coverage to employee who suffers from invalidity or death due to any cause and not related to his employment.
Benefits Under Invalidity Scheme 
- Invalidity Pension
- Invalidity Grant
- Constant-attendance Allowance
- Survivors’ Pension
- Funeral Benefit
- Facilities for Physical / Vocational Rehabilitation and Dialysis
- Education Benefit
Employment Scheme for Socso Malaysia
This Scheme provides protection for self-employed insured persons against employment injuries including occupational diseases and accidents during work-related activities.
Self-employment injury means personal injury to self-employed insured person caused by an accident or an occupational disease arising out of and in the course of his or her self-employment activity including while travelling for the purpose of his or her self-employment activity.
Occupational disease is a disease caused by or arising from any occupation specified in the Fifth Schedule of the Employees’ Social Security Act 1969.(Socso Table 2022). This scheme provides cash benefits to the insured persons and their dependants besides medical treatment, physical rehabilitation and vocational training.
Eligibility
- Malaysian citizen / permanent resident without age limit;
- Individuals who work for themselves to earn a living
Document Needed
- Photocopy of identity card (IC)
- Copy of driving licence / e-hailing profile / permit / certificate or letter of confirmation from the relevant association or agency subject to the type of sector
Benefits under self employment scheme
- Medical Benefit
- Temporary Disablement Benefit
- Â Permanent Disablement Benefit
- Constant Attendance Allowance
- Dependant’s Benefit
- Funeral Benefit
- Education Benefit
- Facilities for physical or vocational rehabilitation
Socso Malaysia 2022 Monthly Benefit Payment
Rates Contributions For EIS Table
Contributions to the Employment Insurance System (EIS are set at 0.4% of the employee’s assumed monthly salary. 0.2% will be paid by the employer while 0.2% will be deducted from the employee’s monthly salary.
Contribution rates are set out in the Second Schedule and subject to the rules in Section 18 of the Employment Insurance System Act 2017 EIS Table.
Employers in the private sector are required to pay monthly contributions on behalf of each employee. (Government employees, domestic workers and the self-employed are exempt)
Rate of Contribution (Socso Table 2022)
Refund of Socso Table 2022 Contributions
Employers who make an error in contribution payments or overpay may claim a refund by submitting claims document to SOCSO office. Please refer to the checklist and ensure that the required documents are completed.
- Checklist
- Erraneous contribution payment schedule (PKSK50A).
- Application contribution refund report.
- Application for refund of contribution (PKSK50).
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