KUALA LUMPUR| The human resources ministry, through the Social Security Organization (SOCSO), will enforce a new monthly salary ceiling for contributors from Sept 1.

SOCSO chief executive officer Azman Aziz Mohammed said about 1.5 million workers, or almost 19% of the total contributors nationwide, would be involved in the salary ceiling hike and these would include local and foreign workers.

He said the increase followed the amendment of the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) which involved increasing the salary ceiling for contributions from RM4,000 to RM5,000 per month.

He said the move to increase the salary ceiling would improve SOCSO’s social security coverage by increasing the existing benefits payment rate up to 25.3%.

“The benefits include temporary disability benefit, permanent disability benefit, dependent’s benefit, survivor’s pension and invalidity pension under Act 4 as well as job search allowance, reduced income allowance and early re-employment allowance under Act 800.

“Starting this September, the contribution amount that will apply to employees with a salary exceeding RM4,000 per month is as stated in the Third Schedule, Act 4 and the Second Schedule, Act 800. For employees with a salary exceeding RM5,000 per month, the contribution amount is according to the salary ceiling of RM5,000,” he said in a statement today.

Azman said the contribution payment should be made by the employer according to the new salary ceiling from September onwards.

“Employers are requested to record the contribution deductions in the statement or pay slip of their respective employees, for the purpose of records and inspection by SOCSO,” he said.

He added that since the establishment of SOCSO in 1971, the salary ceiling had been increased five times.

He said the measures implemented were in line with the agency’s ongoing efforts to provide more comprehensive social protection to contributors and their dependents.


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