the social security organisation of malaysia (socso) (socso)

THE SOCIAL SECURITY

ORGANISATION OF MALAYSIA

(SOCSO)

http://www.iso.org/iso/en/ISOOnline.frontpage

OVERVIEW

INTRODUCTION LEGISLATION & ADMINISTRATION COVERAGE & BENEFITS FINANCIAL MANAGEMENT COOPERATION WITH ILO POLICY RESPOND CHALLENGES

PERTUBUHAN KESELAMATAN SOSIAL / (SOCIAL SECURITY ORGANISATION )

“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

DEFINITION OF SOCIAL SECURITY


9.Family

7.

EmploymentInjury

1.Old-age

2.Disability

4.Sickness

3.Death

6.Medical

Care

SocialSecurityBenefits

5.Maternit

y

8.Unemployment

INTRODUCTION


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SocialInsurance

Work relatedInjury/

diseases

Employment Act

Welfare Department- Universal- Means-tested

EmployeeProvident

FundJPA (Public Services Department(Public Sector Pension Scheme)

Labor Department

SOCIAL SECURITY IN MALAYSIA


INTRODUCTION


Cooperation between Employers, Employees and Government

ORGANIZATIONS RESPONSIBLE

LEGISLATION & ADMINISTRATION

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


To become the leading Social Security Organization in the World

VISION


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; andPromoting OSH

MISSION

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.


• 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.

COVERAGE

• Exemption:– Government employees– Domestic servants– Self employed persons– Foreign workers


• 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

COVERAGE


290,000300,000310,000320,000330,000340,000350,000360,000370,000380,000390,000

2004 2005 2006 2007 2008 2009

335,335

349,413

366,312

383,215389,344

326,840

COVERAGE

• ACTIVE EMPLOYEES

• ACTIVE EMPLOYERS


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

BENEFITS


• Medical benefits– Occupational disease– Treatment at SOCSO

panel clinic @ 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

BENEFITSEmployment Injury Schemes


BENEFITS

• Permanent disablement benefit– Cash – certified of

permanent disablement– Loss 100% = 90% daily @

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

Employment Injury Schemes


BENEFITS

• Funeral benefit– RM1,500– As resulted of EI or

while receiving disablement benefits

– Next of kin @ person– WIL

• Rehabilitation benefit– Facilities for

vocational & physical rehabilitation

– training

Employment Injury 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%

Qualifying condition

• Has not completed age 55

• Certified by medical board

• Fulfilled the qualifying condition contribution

Minimum RM250

Invalidity Pension Schemes

BENEFITS



• 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

BENEFITS


BENEFITS

• 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



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.

COOPERATION WITH ILO


Year 2007 2008 2009 2010

Total Fund 15517.8 16359.7 17702.6 18625.2

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

Total 1235.1 1388.6 1558.1 1938.5

Excess 1370.9 841.9 1342.9 968.6

FINANCIAL MANAGEMENT


8

Total Of Contribution & Benefit Payment



2004 2005 2006 2007 2008 20090

50,000

100,000

150,000

200,000

250,000

300,000

350,000268,663

264,640272,367290,463

315,172

324,798

Recipient

2010- 351,433

STATISTICS TOTAL RECIPIENT



2004 2005 2006 2007 20080

200

400

600

800

1000

1200

817.53 883.9959.59

1061.361186.1

Mil

2009-1,354,1282010-1,678,160


STATISTICS PAYMENT OF BENEFIT


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.

STRATEGIES


• Increasing cost• Investment issues• Efficiency in processing claims• Pressures from mass media• Pressures from NGOs• Migrant workers• Fraudulent claims

CHALLENGES


• 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.

PROMOTION OF SAFETY AND HEALTH

THANK YOU

the social security organisation of malaysia (socso) (socso)

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