Malaysia – Amendments to Employees’ Social Security Act, 1969
Effective 1 June 2016, the Employees’ Social Security Act, 1969 has been amended as below:
- The ceiling of wage for contribution payment has been raised from RM3,000.00 per month to RM4,000.00 per month;
- All employees who are employed under a contract of service or apprenticeship in the private sector and contractual/temporary staff of Federal/State Government as well as Federal/State Statutory Bodies need to be insured under the Employees’ Social Security Act, 1969 by operations of law regardless of their salary. However, contribution will be capped at monthly remuneration of RM4,000.00.
- For such employees’, employers are requested to furnish employees’ details in Form 2 (Employee Registration Form) and send to the nearest SOCSO Office.
- Unregistered employers with employees not liable under the Act (have never paid SOCSO contributions), ought to register themselves and their workers through Employer/Employee Registration Forms (Form 1 & 2) and send the same to the nearest SOCSO Office with supporting documents.