SOCSO (Social Security Organization), also known as PERKESO (Pertubuhan Keselamatan Sosial), is a Malaysian government agency that provides social security protection to employees through insurance schemes.
SOCSO operates under the Employees' Social Security Act 1969 and covers employees in the private sector, except for domestic workers, civil servants, and those who are self-employed (unless they contribute voluntarily under specific schemes).
In BrioHR, there are 4 options to set up for SOCSO;
1. Insured against invalidity & employment injury
2. Insured against employment injury
3. Custom Rate
4. Custom Value
1. Insured Against Invalidity & Employment Injury
- Provides financial protection to employees in cases of invalidity (permanent inability to work due to illness or disability) and employment injury (work-related accidents or occupational diseases).
- First Category (Employment Injury & Invalidity Scheme)
- If an employee experiences a permanent disability due to a medical condition, he/she is eligible for Invalidity Pension
- If the disability resulted from a workplace accident, he/she can claim benefits under the Employment Injury Scheme for medical expenses and rehabilitation.
2. Insured Against Employment Injury
- Protects employees solely against injuries sustained during work-related activities, including accidents at the workplace, while commuting to work, or due to occupational diseases.
- Second Category (Employment Injury Scheme Only)
- A factory worker sustains an injury while operating machinery. SOCSO covers their medical expenses, rehabilitation costs, and compensates for temporary loss of income through the Temporary Disablement Benefit.
- If the injury results in long-term disability, they may receive the Permanent Disablement Benefit.
3. Custom Rate
- A specific contribution percentage by both the employee & employer
- Rates are determined based on an agreed percentage rather than standard SOCSO tables.
4. Custom Value
- A fixed contribution amount determined by the employer, instead of following SOCSO’s standard calculation based on wages.
- This structure allows businesses to remain flexible while still providing social security coverage for their workforce.
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