1. THE SOCIAL SECURITY ORGANISATION OF MALAYSIA
(SOCSO)

2. OVERVIEW LEGISLATION & ADMINISTRATION COVERAGE & BENEFITS
INTRODUCTION
LEGISLATION & ADMINISTRATION
COVERAGE & BENEFITS
FINANCIAL MANAGEMENT
COOPERATION WITH ILO
POLICY RESPOND
CHALLENGES
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )

3. DEFINITION OF SOCIAL SECURITY
“The protection which society provides for its members, through a series of public measures, against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, unemployment, invalidity, old age and death; the provision of medical care; and the provision of subsidies for families with children”. - ILO
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )

4. INTRODUCTION Unemployment Employment Injury 9. 1. Family Old-age 8. 2.
Disability
Social
Security
Benefits 7.
Employment
Injury 3.
Death 6.
Medical
Care 4.
Sickness 5.
Maternity
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )

5. INTRODUCTION SOCIAL SECURITY IN MALAYSIA Welfare Department
Labor
Department
Welfare Department
- Universal
- Means-tested
Employment
Act
Social
Insurance
Work related
Injury/
diseases
Employee
Provident
Fund
JPA (Public Services Department
(Public Sector Pension Scheme)
SOCIAL SECURITY IN MALAYSIA
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )

6. LEGISLATION & ADMINISTRATION
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
LEGISLATION & ADMINISTRATION
ORGANIZATIONS RESPONSIBLE
Cooperation between Employers, Employees and Government
SOCSO Malaysia was set up in 1971
To implement, administer and enforce The Employees' Social Security Act, 1969 and the Employees' Social Security (General Regulations) ,1971.
SOCSO has 46 branches in throughout Malaysia

7. VISION To become the leading Social Security Organization in the World
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
VISION
To become the leading Social Security Organization in the World

8. MISSION
SOCSO is committed to provide social security for all Malaysian workers and their dependents through the principles of social insurance through:
Prompt, efficient and quality service;
Periodical review of the benefits system;
Prudent financial and investment management; and
Promoting OSH
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )

9. SOCSO'S STRATEGIES
SOCSO is committed to provide social security for all Malaysian workers and their dependents through the principles of social insurance through;
Giving highest priority to the interest of the nation and the organization.
Providing prompt, efficient, quality, fair, precise, speedy and economical services to the clients.
Improving the skills and expertise of the SOCSO personnel besides utilising advanced technology to upgrade client services.
Periodical review of the benefits system
Maintaining and strengthening the viability of the SOCSO Fund
Prudent financial and investment management.
Fostering goodwill and noble values amongst SOCSO's personnel.
Co-operating with all the parties involved in the provision of social security protection.
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )

10. COVERAGE Employers Liability Employee Exemption:
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COVERAGE
Employers Liability
Who employs one or more employees – required to register & contribute monthly for all employees
All employee irrespective of the employment status, permanent, temporary etc
Must register irrespective of age; Age 55 and above will continue to be protected (EIS-e’yer)
Employee
Earns a monthly wage RM3,000 or less
More than RM3,000:
Previously registered, must compulsorily continue
Not previously registered, can opt to do so.
Exemption:
Government employees
Domestic servants
Self employed persons
Foreign workers

11. COVERAGE EMPLOYMENT INJURY SCHEME (EIS) Protection for accidents:
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COVERAGE
EMPLOYMENT INJURY SCHEME (EIS)
Protection for accidents:
While traveling
Arising out and in the course of employment
Occupational disease
INVALIDITY PENSION SCHEME (IPS)
Serious disablement or morbid condition of a permanent nature that is either incurable
Unable to earn at least 1/3 of normal person
24 hours coverage
Against invalidity or death due to any cause not connected with his employment

12. COVERAGE ACTIVE EMPLOYERS ACTIVE EMPLOYEES
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COVERAGE
ACTIVE EMPLOYERS
ACTIVE EMPLOYEES

13. BENEFITS Medical benefit Temporary disablement benefit
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
Medical benefit
Temporary disablement benefit
Permanent disablement benefit
Constant attendance allowance
Dependant’s benefit
Funeral benefit
Rehabilitation benefit
Invalidity Pension Schemes
Invalidity pension
Invalidity grant
Constant attendance allowance
Survivors pension
Funeral benefits
Rehabilitation
Educational loan

14. BENEFITS Employment Injury Schemes Medical benefits
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
Medical benefits
Occupational disease
Treatment at SOCSO panel government Hospital/clinic
Free – socso
Serious injury –
to nearest government hospital
2nd class ward-inpatient
Temporary disablement benefit
Unfit for work not less than 4 days
Only during medical leave
Daily rate = 80% of daily wage or min RM10 and max RM78

15. BENEFITS Employment Injury Schemes Permanent disablement benefit
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
Permanent disablement benefit
Cash – certified of permanent disablement
Loss 100% = 90% min RM10
Loss 20% or less = lump sum payment
Exceed 20% = 1/5 daily rate into lump sum and balance = monthly pension
Can continue work
Constant attendance allowance
Permanent total disablement (100% loss)
Severely incapacitated & requires personal attendance of another person
40% of rate total disablement, max RM500
Dependant’s benefit
If employees dies
90% of the daily wage

16. BENEFITS Funeral benefit Rehabilitation benefit RM1,500
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
Funeral benefit
RM1,500
As resulted of EI or while receiving disablement benefits
Next of person
WIL
Rehabilitation benefit
Facilities for vocational & physical rehabilitation
training

17. BENEFITS Qualifying condition Has not completed age 55
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Qualifying condition
Has not completed age 55
Certified by medical board
Fulfilled the qualifying condition contribution
Invalidity Pension Schemes
Full qualifying condition
At least 24 months within 40 consecutive months
2/3 = at least 24
50% - 65% of monthly salary
Reduced qualifying condition
1/3 = at least 24
50%
Minimum RM250

18. BENEFITS Invalidity grant Constant attendance allowance
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Invalidity Pension Schemes
Invalidity grant
Paid for those who are not qualified for Invalidity pension
At least 12 months
amount of the total contributions
Outright payment
Constant attendance allowance
Recipient of invalidity pension
40% of the rate invalidity pension
Max RM500 per month

19. BENEFITS Survivor’s pension Funeral benefits
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Invalidity Pension Schemes
Survivor’s pension
Only if employee dies irrespective of the cause of death
While receiving invalidity pension
Not more than 55 years
Rate:
Invalidity pension = equal
If not = 50% - 65%
Funeral benefits
While receiving invalidity pension
Before 55 age
As EIS

20. PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COOPERATION WITH ILO
Since 1971, SOCSO has formed a strategic cooperation with ILO in the form of technical and legal advice that covered a broad range of policy and strategic issues, including social security, occupational safety and health, gender equality in employment, and other aspects of labour standards.
Recently, SOCSO and ILO began the Relief fund project and study on unemployment insurance . The ILO also supports actuarial work with SOCSO for every five years and this is a ninth actuarial study.

21. FINANCIAL MANAGEMENT Year Total Fund Income Contribution
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT
Year
2007
2008
2009
2010
Total Fund
Income
Contribution
1689.5
1834.7
1868.8
2007.8
Investment Return
884.9
391.6
1015.2
870.8
Others
32.1
4.3 17
28.5
Total
2606.5
2230.5
2900.9
2907.1
Expenditure
Liabilities
1070.2
1198.9
1366.9
1699.7
Operating
165.4
189.7
191.2
238.8
1235.1
1388.6
1558.1
1938.5
Excess
1370.9
841.9
1342.9
968.6

22. FINANCIAL MANAGEMENT PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT

23. FINANCIAL MANAGEMENT STATISTICS TOTAL RECIPIENT 2010- 351,433
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT
STATISTICS TOTAL RECIPIENT
,433

24. FINANCIAL MANAGEMENT STATISTICS PAYMENT OF BENEFIT 2009-1,354,128
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT
STATISTICS PAYMENT OF BENEFIT
2009-1,354,128
2010-1,678,160

25. PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
STRATEGIES
New approach of Social Security Compensation Oriented (Pay workers to stay off work) defined as total replacement of income with dynamic Social Security through Disability management (Pay workers to return to work).
The introduction of this comprehensive approach was in response to the need to cover a more diverse employee base.

26. CHALLENGES Increasing cost Investment issues
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
CHALLENGES
Increasing cost
Investment issues
Efficiency in processing claims
Pressures from mass media
Pressures from NGOs
Migrant workers
Fraudulent claims

27. PROMOTION OF SAFETY AND HEALTH
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
PROMOTION OF SAFETY AND HEALTH
To play a complementary role in the promotion of OSH in Malaysia
To reduce occupational injuries and diseases through Primary, Secondary and Tertiary Prevention
To educate both employers, employees and public on safe and healthy workplace.
To co-operate with other bodies responsible for promoting or policing O.S.H (like NIOSH, DOSH,NGO’S) to bring awareness of the importance of safety and health
To gather and provide OSH data on Occupational injuries and diseases for academic studies.

28. THANK YOU

29. PERTUBUHAN KESELAMATAN SOSIAL (PERKESO)/
SOCIAL SECURITY ORGANISATION (SOCSO)
MENARA PERKESO
281 Jalan Ampang
50538 Kuala Lumpur, MALAYSIA
Website :