What Employees Need to Know About PERKESO
Imagine suddenly getting an accident or suffering from a chronic illness to the point where you can no longer work. Where will you find a source of income to support your family?
Imagine suddenly getting into an accident or suffering from a chronic illness to the point where you can no longer work. Your salary stops. Where will you find a source of income to support your family? Luckily, you have been contributing to PERKESO every month. Therefore, you are entitled to benefits such as Medical Benefits, Temporary Disability Benefits, Permanent Disability Benefits, and physical and vocational rehabilitation facilities under the Employment Injury Scheme. If the treating doctor certifies that you are unable to work, PERKESO will provide an invalidity pension under the Invalidity Pension Scheme.
This is the importance of PERKESO. What do you need to know about PERKESO?
What is PERKESO?
In simple terms, PERKESO is like insurance for workers in Malaysia. Your monthly contributions are placed into a fund known as the social security fund along with other contributors. If a contributor encounters a work-related misfortune, they will receive benefits from this fund.
PERKESO is an acronym for Pertubuhan Keselamatan Sosial, also known as SOCSO. It was established under the Employees’ Social Security Act 1969 (Act 4), Employment Insurance System Act (Act 800), Self-Employment Social Security Act (Act 789), and Housewives’ Social Security Act (Act 838) to provide assistance such as medical and financial aid through several schemes.
Below are some of the schemes under PERKESO:
- Employment Injury Scheme
- Invalidity Scheme
- Employment Insurance System
- Self-Employment Social Security Scheme
- Housewives’ Social Security Scheme
Let’s look at what benefits and advantages are offered under these schemes to contributors:
a) Employment Injury Scheme
The Employment Injury Scheme acts as a protection for workers who get into accidents while commuting to and from work, while performing their job or suffer from an occupational disease.
Here are the benefits from this scheme:
– Medical Benefits
– Temporary Disability Benefits
– Permanent Disability Benefits
– Constant Attendance Allowance
– Dependents’ Benefits
– Physical or Vocational Rehabilitation Facilities
– Return To Work Program
– Funeral Benefits
– Education Benefits
You can read more about the Employment Injury Scheme here.
b) Invalidity Scheme
Invalidity refers to a permanent infirmity that cannot be cured or treated and results in a person being unable to earn a living. Under the Invalidity Scheme, you will be provided with 24-hour protection against invalidity or death, regardless of whether it is work-related or not.
Here are the benefits from this scheme:
– Invalidity Pension
– Invalidity Grant
– Constant Attendance Allowance
– Survivors’ Pension
– Funeral Benefits
– Physical or Vocational Rehabilitation and Dialysis Facilities
– Return To Work Program
– Education Benefits
You can read more about the Invalidity Scheme here.
c) Employment Insurance System
The EIS or Employment Insurance System was introduced by PERKESO on January 1, 2018. Its purpose is to assist private-sector workers who lose their jobs by providing a Job Search Allowance for up to 6 months to support the unemployment period. At the same time, you will also be assisted in the Job Placement Program together with an assigned Employment Services Officer.
The Job Search Allowance will be given based on the average final salary received before the employee loses their job. It is equivalent to:
– 80% of the total salary in the first month;
– 50% of the total salary in the second month;
– 40% of the total salary in the third and fourth months;
– 30% of the total salary in the fifth and sixth months.
If you have returned to work within less than 6 months, then 25% of the remaining Job Search Allowance amount will be given as an Early Reemployment Allowance.
With the Job Search Allowance, you won’t be taken by surprise if you’re terminated and can calmly search for a new job.
You can read more about the Employment Insurance System here.
Is It Mandatory to Contribute to PERKESO?
Yes, it is mandatory for all private-sector employees in Malaysia. Employers who do not contribute to PERKESO are considered to be violating the law and can be fined.
Checking your contribution status is now easier. You can download the “Prihatin PERKESO” application from the Play Store or App Store. Then register an account and you can check when your last contribution was made by your employer.