What is Social Security Organization (SOCSO) / Pertubuhan Keselamatan Sosial (PERKESO)
Social Security Organization (SOCSO), or also known as PERKESO (Pertubuhan Keselamatan Sosial) was established on 1 January 1971, under the Employees’ Social Security Act 1969 as a government department of the Ministry of Labour and Manpower.
SOCSO is able to provide free medical treatment, facility for physical or vocational rehabilitation, and financial assistance to employees, if they have loss their ability due to accidents or diseases that have reduced their abilities to work or rendered them incapacitated through the Act and Regulations.
SOCSO was entrusted with the administration of two social security schemes, which are the Employment Injury Scheme and the Invalidity Scheme.
For Employment Injury Scheme, it is to provide coverage and protection for employees who suffers from employment injury. The coverage includes industrial accidents while carrying out their duties; accidents while travelling; accident during emergency; occupational disease.
As for Invalidity Scheme, is to provide coverage and protection for an insured person who is considered as suffering from invalidity by reason of specific morbid condition of permanent nature either incurable or is not likely to be cure and no longer capable of earning, by work corresponding to his strength and physical ability, at least one-third (1/3) of the customary earnings of a sound insured person. This scheme also provides 24-hour coverage to employee who suffers from invalidity or death due to any cause and not related to his employment.
It is SOCSO’s Vision to become the premier and outstanding leader in social security 2020, with their Mission to provide a social security protection to employees and their dependents through social security schemes and to increase awareness on occupational safety and health that will ultimately improve the Employees’ social well-being.
What are the functions of SOCSO?
Every company setup is required to contribute SOCSO for its employees, irrespective they are full/part time, permanent or temporary, employment or contract. Every company is required to remit the contribution sum to PERKESO Office before the end of the following month.
The functions of SOCSO (PERKESO) are as follows:
- Registration of employers and employees
- Collection of contribution from employers and employees
- Payment of benefits to workers and/or their dependents when tragedy strikes
- Provision of physical and vocational rehabilitation benefits
- Promotion of awareness of occupational safety and health
Government servants, foreign employers, self-employed persons, sole proprietors & partnership, domestic servants or spouse are not eligible for SOCSO protections.
However, failure to submit the forms and remit the payment within the period will result in late interest (penalty) charged by PERKESO. Employers may be prosecuted and shall be punishable with imprisonment for a term which may extend to two years, or with a fine not exceeding ten thousand ringgit, or even both.
Please feel free to contact us to find out more about SOCSO and our payroll services.