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2026 SOCSO New Policy Update

Posted LnCoadmin

The SOCSO 2026 policy introduces Skim Lindung 24 Jam, expanding Social Security Organisation coverage to 24-hour protection, including daily life accidents. It provides ongoing support such as monthly cash benefits, medical aid, and rehabilitation—focusing on long-term income protection rather than one-time payouts.

1. Overview of SOCSO (PERKESO)

Under the SOCSO (PERKESO) system, Malaysia implements a mandatory social security scheme applicable to all employed individuals, administered by the Social Security Organisation.

SOCSO provides two key types of protection:

1. Employment Injury Scheme
Covers employees against injuries, disabilities, or occupational diseases arising out of and in the course of employment.

2. Invalidity Scheme
Provides long-term financial support to employees who are unable to work due to illness or non-work-related conditions.

2. New Policy Effective June 2026

As per the latest regulation effective 1 October 2024, SOCSO contribution rates are as follows:

  • Employer: 1.75% of monthly wages
  • Employee: 0.5% of monthly wages

The government has announced the implementation of the Skim Lindung 24 Jam (24-Hour Protection Scheme), which will take effect in June 2026.

Key highlights of the new policy:

  • Introduction of additional contribution (premium)
  • Automatic and mandatory implementation
  • Contributions will be automatically deducted based on revised rates
  • Employees will enjoy 24-hour protection coverage

Note:
The additional premium for 24-hour protection will be fully borne by employees.

3. Contribution Structure for 24-Hour Coverage
The additional contribution will be implemented in phases:

  • 2026 – 2027 (First 2 years): 0.75%
  • 2028 – 2030 (Next 3 years): 1.00%
  • From 2031 onwards: 1.25%

This phased approach is designed to gradually enhance protection while managing employees’ financial impact.

4. SOCSO Coverage (Beyond Workplace Injuries)
SOCSO is designed to provide continuous income protection when an employee is unable to work.

Coverage includes:

  • Accidents (e.g. road accidents, falls)
  • Loss of working ability
  • Permanent disability

Benefits provided:

  • Monthly cash compensation
  • Medical expense coverage
  • Rehabilitation and physiotherapy
  • Assistive devices (e.g. prosthetics, wheelchairs)

5. Expanded Coverage: Daily Life Accidents Included
Under the Skim Lindung 24 Jam policy, SOCSO coverage will be extended to non-work-related incidents, including:

  • Accidents at home (e.g. slips and falls)
  • Weekend or daily commuting incidents (e.g. driving)
  • Accidents during shopping (e.g. malls, supermarkets)
  • Injuries during sports or physical activities

This enhancement reflects the reality that most accidents occur outside the workplace, strengthening overall protection.

6. SOCSO Compensation Structure
SOCSO compensation typically ranges between: 70% – 90% of the employee’s salary

Unlike conventional insurance, SOCSO focuses on sustainable income replacement rather than lump-sum payouts.

Compensation structure:

  • Temporary incapacity: Monthly cash allowance
  • Permanent incapacity: Long-term or even lifetime financial support

This ensures continuous financial stability for affected employees.

7. Key Limitations & Important Notes

Despite its wide coverage, SOCSO may not cover the following situations:

  • Incidents occurring outside Malaysia
  • Illegal employment or visa-related issues
  • Diseases (e.g. diabetes, hypertension)

Important:
SOCSO is primarily an accident protection scheme, not a medical insurance plan.