Current Economic Downturn Not an Excuse to Avoid Contributing to SOCSO

Stern actions will be taken against companies that did not register their employees to contribute to the Social Security Organisation (SOCSO).

The Minister of Human Resource, Datuk Seri M. Saravanan said that the current economic crisis should not be taken as an advantage by employers in avoiding contribution to SOCSO.

“Although our country is facing an economic downturn, this is not an opportunity to avoid contributing to the organisation.

“With that said, SOCSO enforcers will join forces with the Department of Labour in checking on all companies across the country in an operation to tackle this issue, which is commonly found among companies that offer security services.”

He told reporters during a media session after visiting 59-year-old E. Philomena, the widow of the late Thava Sagayam, today (September 3).

Thava was the security guard who passed away at the age of 64 on August 27 last month due to sustaining head injuries from an assault while on duty back on December 29 last year.

After his passing, SOCSO found that Thava had contributed via his employment as a security guard under the Employees’ Social Security Act 1969 (Act 4) and thus, fulfilled conditions under the Employment Injury Scheme, enabling his heir to receive aid.

Philomena was entitled to three benefits from SOCSO. Firstly, the Temporary Disablement Benefit (FHUS) was paid in the amount of RM12,737.32 for the duration of the deceased’s sick leave which started on the date of incident until his demise.

Besides that, she is entitled to a lifelong Dependants’ Benefit (FOT) amounting RM1,143.90, which will be paid monthly, and also the Funeral Benefit (FPM) of RM2,000.

“It is unfortunate that the late Thava’s employer did not contribute to SOCSO. However, I was informed that his former employer submitted contributions.

“I’d like to reiterate that workers’ welfare must be guaranteed. In this case, one could only imagine if he had no contributions.

“The couple had no children and Thava was the only breadwinner of the family. How would the wife survive?”

“As such, I suggest that employers found guilty of not paying contributions to SOCSO be penalised to a compulsory fine of RM10,000 and imprisonment of up to two years, as provided under existing Rules and Act pertaining to employees’ social security,” Saravanan added.

Philomena conveyed her gratitude towards SOCSO and Saravanan for the aid received.

“I had to quit my job at a factory near here (at my house) to look after Thava for eight months at the hospital. 

“When SOCSO informed me that I’m eligible to receive the benefits as a dependent, I felt relieved because I wasn’t expecting that.

“The payments could help ease my burdens and for that, I thank SOCSO and MOHR for the assistance from the bottom of my heart,” she expressed.


Chris Teh


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