Socso to enforce new salary ceiling limit for contributions from Sept 1

KUALA LUMPUR: The Human Resources Ministry through the Social Security Organisation (Socso) will enforce a new monthly salary ceiling limit for contribution purposes from Sept 1.

Socso chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed (pic) said they expected that 1.5 million workers, or almost 19%, of the total Socso contributors across the country would be involved in the salary ceiling increase which included 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 limit for contribution purposes 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 (Pencen Penakat) and Invalidity Pension (Pencen Ilat) under Act 4 as well as Job Search Allowance (JSA), Reduced Income Allowance (RIA) and Early Re-employment Allowance (ERA) 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 limit of RM5,000,” he said in a statement on Wednesday (Aug 31).

Mohammed Azman said the contribution payment should be made by the employer according to the new salary ceiling limit amendment for this September and 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 until now, the salary ceiling had been increased five times.

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