Social Security Organisation (SOCSO), also known as PERKESO (Pertubuhan Keselamatan Sosial), was formed under the Employees' Social Security Act 1969 as a government department of the Ministry of Labour and Manpower on 1 January 1971. It is an organisation that protects Malaysian employees in accordance with the Employees' Social Security Act 1969. The act requires all employers in Malaysia to register their business and also to register their employees with SOCSO. A monthly contribution must be made by both employer and employees according to the percentage stipulated by the government.
SOCSO is entrusted with the administration of two social security schemes, namely the Employment Injury Scheme and the Invalidity Scheme. The Employment Injury Scheme provides protection for employees against contingencies, including occupational disease and accidents that occur while travelling in the course of employment. The Invalidity Scheme, on the other hand, provides 24 hours coverage against invalidity or death due to any cause.
What is the Employee's Eligibility?
All eligible Malaysian citizens and permanent resident employees must be registered. All employees who are employed under a contract of service or apprenticeship in the private sector and contractual / temporary staff of Federal / State Government as well as Federal / State Statutory Bodies need to be registered and insured under SOCSO. Contribution will be capped at a monthly remuneration of RM4,000.00.
Employees exempted from Employees’ Social Security Act 1969
coverage are as follows:
Federal and State Government permanent employees
Domestic servants
Self-employed
Sole proprietor or owners of partnership
Spouse/s of a sole proprietor or partners
Foreign workers
How to select the relevant SOCSO category for each employee in Talenox?
In the Employee's Profile, simply head to Statutory Details and update the following field:
Note:
For Malaysian residents: SOCSO number is the same as NRIC of an employee. It is not required to enter SOCSO number if you have already entered your the NRIC in the employee profile.
For non-Malaysian residents (foreigners): SOCSO number is either the employee's Foreign Workers Social Security number or their passport number. If your foreign employee has a FWSS keyed into the system, Form EA will also reflect the FWSS under Section A7 (SOCSO No.).