Increase seeks to enhance Socso's social security protection to employees, minister says
Malaysia's Human Resources Ministry is seeking to raise the insured salary ceiling for workers under the Social Security Organisation (Socso/Perkeso) to RM6,000, according to reports.
Bernama reported on Monday that the ministry is expected to introduce two amendment bills that will involve changes to the Employees' Social Security Act and the Employment Insurance System Act.
The bills are expected to hike the insured salary ceiling from the current RM5,000 to RM6,000.
"This increase can enhance Perkeso's social security protection by improving benefits under both acts," Sim told Bernama.
Currently, there are approximately 1.45 million workers in Malaysia with salaries exceeding RM5,000, while there are about 8.38 million employees will salaries below RM5,000, according to the minister.
In Malaysia, Socso is a government agency formed under the Ministry of Human Resources with the function of providing social security protection to employees in the private sector in cases of workplace injuries, occupational sickness, or deaths.
Employers and employees both contribute to Socso payments, with the percentage of their payments depending on the employees' income.
The current insured salary ceiling for workers is currently at RM5,000 after the latest wage ceiling for contributions was raised in September 2022.
Employees with salaries exceeding RM5,000 monthly are currently subject to the wage ceiling of RM5,000.
Sim said the proposed amendment to the wage ceiling is part of the ministry's 3k focus, which is to enhance welfare, skills, and productivity among employees, Bernama reported.
Other initiatives under the 3k focus that are currently implemented include the free training to 10,000 workers under the Occupational Psychological First Aid training programme this year.
Meanwhile, other proposed changes to Malaysia's world of work include reforms to the Industrial Court of Malaysia amid increasing number of unfair dismissal cases and disputes over employment agreements, Bernama reported.
The government is also looking at how to improve the gig ecosystem to protect the rights and welfare of the country's gig workers.
