Over 456,000 Socso recipients to benefit from cost-of-living adjustment, pension rate increase

KUALA LUMPUR - The implementation of the cost of living adjustment for recipients of scheduled benefits and the increase in the minimum pension rate under the Social Security Organisation (Socso) Invalidity Scheme is expected to benefit over 456,000 recipients.

Socso chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said the two initiatives under the Employees Social Security Act 1969 (Act 4) cover Invalidity Pension and Survivors’ Pension under the Invalidity Scheme and Permanent Disablement and Dependants’ Benefits under the Employment Injury Scheme.

He said the adjustments in regular benefit payments and pension to Socso recipients would be able to help them cope with the current increase in the price of goods and services in the country.

"The two initiatives implemented following the International Labour Organisation’s (ILO) 11th Actuarial Assessment Study will involve an expenditure of about RM234 million.

"The study took into consideration the current social and economic conditions in Malaysia, the impact of the Covid-19 pandemic, higher cost of living and the increase in inflation rate," he said in a statement today.

Mohammed Azman added that over 400,000 recipients are expected to benefit from the adjustment in regular benefit payments which would involve an estimated expenditure of RM213 million.

He said, so far up adjustments to cost of living for Socso regular benefit payments had been made 12 times under the Employment Injury Scheme and 10 times under the Invalidity Scheme since 1977.

"The adjustment rate in cost of living effective Jan 1, 2023 is between 0.7 per cent and 9.4 per cent depending on the year the pension was received.

Mohammed Azman also informed that the minimum pension rate under the Invalidity Scheme would be increased from RM475 to RM550 a month.

He said the increase in the minimum pension rate would benefit about 56,000 households in the country to help address the increase in cost of living involving a provision of RM21 million.

"It is hoped that the two initiatives will help ease financial burden, improve well-being and meet the socio-economic needs of Socso recipients," he said. - BERNAMA