Foreign workers play a significant role in Malaysia’s workforce, contributing to various industries and sectors. To ensure their well-being and protection, the Social Security Organization (SOCSO) has implemented a comprehensive social security system tailored specifically for foreign workers.
In this article, we will explore what SOCSO for foreign worker is, how foreign workers can register with SOCSO, and the benefits they can avail themselves of. Let’s find out below!
What is SOCSO?
The Social Security Organisation, or SOCSO, is a statutory body established by the Malaysian government to provide social security protection to employees.
SOCSO operates under the purview of the Ministry of Human Resources and aims to safeguard employees’ interests by providing financial assistance and other benefits during times of disability, injury, illness, or death resulting from work-related incidents.
Both employers and employees have a responsibility to make contributions to SOCSO. Employees are required to contribute a smaller percentage of their income, which can vary between 0.5% and 3% based on their earnings.
However, if an employee’s monthly salary exceeds RM3,000, contributing to SOCSO becomes optional for them.
How to Verify Your SOCSO Number Using Your IC?
Verifying your SOCSO number using your IC (identity card) is a simple process. If you are a Malaysian resident, your SOCSO number will be the same as your IC number.
To confirm your SOCSO number, you have several options. You can call the agency’s hotline at 1-300-22-8000 and speak with a representative who can assist you.
Alternatively, you can visit the PERKESO website and engage in a conversation with a representative through the online chat feature. Additionally, you can check your payslip, as your SOCSO number should be listed there.
Read more: 10 Effective Strategies for Managing Diversity in the Workplace
SOCSO Eligibility and Coverage
Under SOCSO, employees below 60 years of age who work for private companies in Malaysia are eligible for coverage. However, certain individuals are not qualified for SOCSO coverage, including:
Permanent employees of the Federal and State Government
Self-employed individuals
Sole proprietors, partners in a partnership, and the owners of such businesses
Domestic workers/servants
It is important to note that foreign workers employed in Malaysia do not have to make SOCSO contributions as employers are responsible for covering those contributions on their behalf.
SOCSO for Foreign Workers
Starting from 1 January 2019, employers who hire foreign workers are required to register their employees with the SOCSO and contribute to the Employment Injury Scheme as per the Employees’ Social Security Act 1969 (Act 4).
The contribution rate, which is 1.25% of the insured monthly wages, must be paid by the employer. Employers can register their foreign workers either through the ASSIST portal or by submitting the registration form to the nearest PERKESO office.
Foreign workers must possess valid passport and Special Pass for new foreign workers or an employment pass and Temporary Employment Visit Pass or a valid employment pass for existing foreign workers.
For existing foreign workers in Malaysia who possess a valid Foreign Workers Compensation Scheme (FWCS), their employers must register them with SOCSO one day after the FWCS expires. This is subject to the end of the cooling-off period for FWCS, which concludes on 31 December 2019.
However, starting from 1 January 2020, all employers are required to register with SOCSO, even if their foreign workers are still covered under FWCS.
New foreign workers entering Malaysia on or after 1 January 2019 must register with SOCSO once they have been validated by the Malaysian Immigration Department at any designated port of entry.
Read more: Understanding Manpower Planning and Its Importance in F&B
How to Register with SOCSO for Foreign Worker
Both employers and employees have the option to register for SOCSO for foreign worker through two methods: using Form 1 and Form 2 or utilising the Malaysian Corporate Identity (My CoID) system. Here’s an overview of the registration process:
When registering in person at SOCSO counters, either the employer or an authorised representative can complete the registration. It is important to provide the necessary supporting documents from relevant agencies during the registration process.
If an employer delegates the registration to a representative, an authorization letter from the employer must be provided to ensure the validity of the registration.
Alternatively, employers can opt for the MyCoID method. Under this method, employers must submit their registration forms along with the required supporting documents to SOCSO for foreign worker. It is essential to meet the eligibility requirements outlined in the Employees’ Social Security Act.
During the registration process, employers must accurately complete Form 2, the Employee Registration Form, and attach all the relevant supporting documents as determined by the type of business entity.
It is the employer’s responsibility to ensure that all necessary details, such as the employee’s identification card number, are included and match the information provided in Form 2.
Read more: 8 Staff Schedule Management Tips for Business Owners
The Benefits of SOCSO for Foreign Workers
SOCSO provides a range of benefits and coverage to foreign workers to ensure their well-being and financial security. Let’s explore some of the key benefits they can avail themselves of:
1. Medical Benefit
Workers who experience employment-related injuries or occupational diseases are eligible to receive complimentary medical treatment at either SOCSO’s panel clinic or government clinics/hospitals until they achieve full recovery.
Reimbursement
Both employers and employees have the option to seek reimbursement for medical treatment expenses incurred at non-panel clinics through SOCSO. To claim reimbursement, an application must be submitted to SOCSO, and the reimbursement amount is subject to conditions set by the organisation or in accordance with the Fees Act of 1951.
2. Temporary Disablement Benefit
Period of Temporary Disablement
Temporary Disablement Benefit is provided during the period when an employee is on medical leave, as certified by a doctor, for a minimum of 4 days, including the day of the accident.
However, the benefit will not be paid for any days on which the employee works and earns wages during this period.
Rate of Temporary Disablement Benefit
The daily rate of Temporary Disablement Benefit is calculated at 80% of the employee’s average assumed daily wage. The minimum rate is set at RM30.00 per day, while the maximum rate is RM132.00 per day.
Read more: Overtime for Part-Time Employees: Rights & Rules
3. Permanent Disablement Benefit
Employees who experience permanent disability as a result of an employment injury are eligible to apply for the Permanent Disablement Benefit.
Rate of Permanent Disablement Benefit
The daily rate of the Permanent Disablement Benefit is calculated at 90% of the employee’s average assumed daily wage, with a minimum of RM30.00 per day and a maximum of RM148.50 per day.
Claim Period
Claims for the Permanent Disablement Benefit must be submitted within 12 months from the last date of temporary disablement.
Assessment and Payment
Assessment and Payment Claims will be referred to the Medical Board for assessment of the permanent disability.
If the assessment does not exceed 20%, the benefit can be paid as a lump sum.
If the assessment exceeds 20%, the employee has the option to convert 1/5 of the daily rate of the benefit into a lump sum payment, while the remaining balance will be paid on a monthly basis for the employee’s entire life.
4. Constant Attendance Allowance
The Constant Attendance Allowance is provided to foreign workers who experience total permanent disablement (100%) and are severely incapacitated to the extent that they require constant personal attendance from another individual.
This condition must be certified by the Medical Board, Special Medical Board, or the Appellate Medical Board.
The allowance amount is fixed at RM500 per month.
Read more: Type of Allowances for F&B Employees in Malaysia
5. Rehabilitation Facilities
Eligible employees have access to various rehabilitation facilities provided by SOCSO, including:
Physiotherapy
Reconstructive surgery
Provision of prosthetics, orthotics, and other related appliances
Provision of orthopaedic apparatus such as wheelchairs, crutches, hearing aids, spectacles, special shoes, and other necessary items.
All expenses related to these rehabilitation facilities will be covered by SOCSO according to the prescribed rates, terms, and conditions.
6. Dependants’ Benefits
In the unfortunate event of an employee’s death due to an employment injury, their dependents are eligible to receive the Dependants’ Benefit.
Rate of Daily Benefit
The daily rate of the Dependants’ Benefit is set at 90% of the employee’s average assumed daily wage, with a minimum of RM30.00 per day and a maximum of RM148.50 per day.
To see the Dependants and Daily Rate Share, visit Foreign Worker Policy!
7. Funeral Benefit
Funeral benefit payments are provided to eligible dependants or individuals who bear the funeral expenses. The payment amount is based on the actual expenses incurred or the maximum payment amount, whichever is lower. The maximum benefit payment amounts are as follows:
If the death occurs in Malaysia and the burial takes place in the country of origin, a maximum cash payment of RM6,500 will be provided, which includes the cost of shipping the remains/ashes to the country of origin.
If the death and burial both occur in Malaysia, a maximum amount of RM2,000 will be paid.
For recipients of periodic benefits, if the death and burial take place in the country of origin, a maximum amount of RM2,000 will be paid.
It is important to note that the benefit payment is subject to the submission of relevant receipts.
Read more: How to Apply Foreign Worker Quota in Malaysia?
8. Cost of Repatriation of the Body
In cases where a foreign worker passes away in Malaysia due to circumstances unrelated to their work, repatriation of the body becomes a part of Corporate Social Responsibility.
If the death of a foreign worker occurs in Malaysia and the burial takes place in their home country, a maximum cash payment of RM4,500, including the cost of repatriation back to the home country, will be provided to the responsible party (subject to change).
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