Contributions to SOCSO are Compulsory for Employers

Owners of all types of large or small businesses are responsible to contribute to the Social Security Organisation (SOCSO) for their employees.

This includes roadside stalls such as those selling nasi lemak and banana fritters as they are no exception if inspections were to be carried out. 

Based on the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800), it is mandatory for employers to contribute if they have even one employee.

SOCSO Chief Executive Officer, Datuk Seri Dr. Mohammed Azman Aziz Mohammed said the act does not exempt any employer from this responsiblity.

“If they have an employee such as at a roadside stall (selling) banana fritters and nasi lemak in the morning, please register and contribute.

“No one will be spared in Ops Kesan (detection operations) and employers should not see this as a burden. Should anything happen to the employee, who will be there to take care of their family?” he said.

He said this during the launching of the national-level Ops Kesan at the Shah Alam Convention Center (SACC) in Shah Alam, Selangor.

Mohammed Azman explained that contribution to SOCSO is small and will not burden employers.

For example, he said for the minimum salary of RM1,200, the contribution to be made by employers is 1.75 percent and employees 0.5 percent.

“According to the amount, it is only around RM20, so it is not burdensome.


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