SOCSO Account Registration – An Employer’s Guide
SOCSO, or the Social Security Organization, is a Malaysian government agency which was founded in the country to provide employees in the private sector with social security protection, in accordance with the Employees’ Social Security Act 1969. SOCSO is also commonly referred to as PERKESO (Pertubuhan Keselamatan Sosial).
In Malaysia, SOCSO’s main responsibilities encompass the following:
- The collection of contributions from both employers and employees
- The registration of both employers and employees
- The provision of physical and vocational rehabilitation benefits
- The promotion of awareness of occupational safety and health
- The payment of benefits to workers and/or their dependents when unfortunate tragedy occurs
All Malaysian employers are required to register their employees for SOCSO no later than 30 days once they have begun employment.
How to Register for SOCSO
Both employers and employees are able to register for SOCSO via Form 1 and Form 2. The registration can be done either via SOCSO counters or through the Malaysian Corporate Identity (My CoID).
When registering at the SOCSO counters, the registration can be done by the employer or the employer’s representative. Upon registration, the supporting documents from the relevant agencies must be provided. If an employer were to send a representative in their place for the registration, an authorization letter from the employer is needed or it will not be considered valid.
If the registration is done thought the My CoID method, employers are required to submit their registration forms together with the needed supporting documents to SOCSO. This is on the condition that the eligibility requirements under the Employees’ Social Security Act are met.
For the registration process, employers are required to submit and attach all the needed supporting documents which will be determined by the business entity type. It is the responsibility of the employer to ensure that the necessary details, such as the identification card number for example, is included in Form 2. Form 2 is the Employee Registration Form and all details must match accordingly.
How Employers Should Maintain Records
Employers are responsible for maintaining a register which contains the necessary particulars in respect of each month for each employee in the industry. The employer must maintain and store a similar employee register, which can be done either electronically or manually. The details which must be kept in the register include the following:
- Identification number
- The amount of contribution for the month
- The employee contribution type
- Monthly salary amount
- Allowance (if any)
All employers are required to maintain and keep each register as needed, and this includes all records of payment of contribution make to SOCSO for the past seven years from the date of the last entry therein.