KUALA LUMPUR - The Human Resources Ministry, through the Social Security Organisation (Socso), is raising the salary ceiling for contributions from RM5,000 to RM6,000 per month, effective today.
In a statement today, Socso said the change is in line with the amendments to the Employee Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
"Starting Oct 1, the contribution amounts applicable to employees earning between RM5,000 and RM6,000 per month will be as specified in the Third Schedule of Act 4 and the Second Schedule of Act 800," read the statement.
This increase in the salary ceiling aims to provide better benefits for employees with salaries exceeding RM5,000 by raising the existing interest payment rate by up to 20.2 per cent.
The adjustment will enhance benefits for employees under both Acts.
Under Act 4, the benefits affected include the Temporary Disability Benefit, Permanent Disability Benefit, Dependent's Benefit as well as Invalidity and Survivor’s Pensions.
For Act 800, the benefits include the Jobseeker's Allowance, Reduced Income Allowance and Early Re-employment Allowance.
Employers are required to start making contribution payments according to the new salary ceiling from Oct 1 onwards.
They must also record the contribution amounts in employees’ pay statements or payslips for record-keeping and inspection.
About 1.5 million workers, or nearly 15.5 per cent of all Socso contributors in Malaysia, will be affected by this salary ceiling increase, including both local and foreign workers. - BERNAMA