Introduction
If you are an employer in Malaysia who hires foreign workers, you may have heard of SOCSO, or the Social Security Organization. SOCSO is a statutory body that provides social security protection to employees in Malaysia, including foreign workers. However, you may not be aware of the eligibility, coverage, and benefits of SOCSO for foreign workers. In this article, we will explain what SOCSO for foreign workers is, how you can apply for it, and why it is important for you and your employees.
What is SOCSO for Foreign Workers?
SOCSO for foreign workers is a social security scheme that covers foreign workers (excluding domestic servants) who are employed in Malaysia with valid documents. The scheme was implemented on January 1, 2019, to provide protection and compensation to foreign workers in the event of employment injury. Employment injury refers to any personal injury, disease, or death caused by an accident or an occupational disease arising out of and in the course of employment.
As an employer, you are required to register your foreign employees with SOCSO and contribute 1.25% of each employee’s monthly wage to the Employment Injury Scheme. The contribution is subject to a maximum insured wage of RM4,000 per month. Foreign workers are not required to make any contributions themselves.
How to Apply for SOCSO for Foreign Workers?
To apply for SOCSO for foreign workers, you need to follow these steps:
Fill up and scan Borang 1 - Pendaftaran Majikan, Borang SIP 1 - Pendaftaran Majikan, Borang Pendaftaran Pekerja Asing, Borang Pengisytiharaan Orang Tanggungan Pekerja Asing You can download the forms below:
Submit the scanned or printed copies to the nearest SOCSO office or online via the Assist Portal.
Pay the monthly contribution for each foreign worker using the Contribution Schedule and submit it to SOCSO via the Assist Portal, e-Payment, or bank counter.
Keep the receipt of payment and the registration confirmation as proof of coverage.
You are advised to register and pay the contributions for your foreign workers as soon as possible to avoid any penalties or legal actions. If you fail to register or pay the contributions for your foreign workers, you may be fined up to RM10,000 or imprisoned up to two years, or both.
What are the Benefits of SOCSO for Foreign Workers?
SOCSO for foreign workers offers various benefits to foreign workers who suffer from employment injury, such as:
Medical Benefit: This covers the cost of medical treatment, hospitalization, surgery, medicine, and rehabilitation for the injured worker. The injured worker can choose to receive treatment at SOCSO’s panel clinic or government clinic/hospital.
Temporary Disablement Benefit: This provides a daily cash allowance to the injured worker who is unable to work for a certain period of time due to the injury. The benefit is paid for the duration of the medical leave certified by a doctor, for not less than four days, including the day of the accident. The daily rate of the benefit is 80% of the worker’s average assumed daily wage, subject to a minimum of RM30 and a maximum of RM132 per day.
Permanent Disablement Benefit: This provides a monthly pension or a lump sum payment to the injured worker who suffers from permanent loss of earning capacity due to the injury. The degree of permanent disablement is determined by SOCSO based on a schedule of injuries. The monthly pension is calculated based on 90% of the worker’s average assumed daily wage, subject to a minimum of RM30 per day and a maximum of RM148.50 per day. The claim must be made within 12 months from the last date of the temporary disablement. Subject to the Medical Board for permanent disability assessment.
Constant Attendance Allowance: This provides a monthly allowance to the injured worker who requires constant personal attendance by another person due to the injury. This allowance is fixed to RM500 per month.
Rehabilitation Facilities: Eligible employees are entitled to various rehabilitation facilities provided by SOCSO. These facilities include physiotherapy, reconstructive surgery, supply of prosthetics, orthotics, and other appliances, as well as the supply of orthopedic apparatus such as wheelchairs, crutches, hearing aids, spectacles, special shoes, and others. All expenses incurred for these facilities will be borne by SOCSO based on stipulated rates, terms, and conditions.
Dependants’ Benefits: TIn the unfortunate event of an employee's death due to an employment injury, their dependants are entitled to receive a benefit. The daily rate of this benefit is calculated as 90% of the average daily wage, with a minimum of RM30.00 per day. The maximum daily rate payable is RM148.50 per day. It should be noted that the dependants of the deceased employee will be sharing this daily rate.
or If an employee dies without leaving behind a spouse or children, the Dependants’ Benefit will be paid to:
Funeral Benefit: Benefit payments will be made to eligible dependents or those who pay for funeral costs, based on the actual expenses submitted or a maximum payment amount, whichever is lower. The maximum benefit payment amounts are RM6,500 for death in Malaysia and burial in the country of origin, RM2,000 for death and burial in Malaysia, and RM2,000 for periodic benefit recipients in the country of origin.
Cost of Repatriation of the Body: This covers the cost of transporting the body of the deceased worker to their country of origin. The amount payable is RM4,500.
These benefits are not only beneficial for your foreign workers, but also for you as an employer. By providing SOCSO for foreign workers, you can:
Reduce your liability and cost of medical expenses in case of employment injury.
Improve the morale and productivity of your foreign workers by ensuring their well-being and protection.
Comply with the legal requirements and regulations of the Malaysian government.
Enhance your reputation and image as a responsible and caring employer.
Why Choose PCR for SOCSO Consultation and Application?
As an employer, you may find it difficult to understand the requirements and procedures of SOCSO for foreign workers. You may also face challenges in communicating with SOCSO officers or filling up the forms correctly. That is why you need a reliable and professional partner who can help you with SOCSO consultation and application.
PCR is a manpower/recruitment agency company that specializes in providing SOCSO services for foreign workers. We have a team of experienced and qualified consultants who can guide you through the process of SOCSO registration and contribution. We can also help you claim the benefits of SOCSO for foreign workers in case of employment injury. We have a network of contacts and connections with SOCSO offices and officers, which can speed up the process and ensure a smooth and hassle-free experience for you.
At PCR, we care about your business and your employees. We understand the risks and challenges that you face in your work environment, and we want to help you secure your future and your employees’ future. That is why we offer SOCSO services for foreign workers at affordable and competitive rates. We also provide other services, such as visa application, work permit renewal, payroll management, and tax filing, to help you with your employment needs.
If you are interested in our SOCSO services for foreign workers, or if you have any questions or inquiries, please do not hesitate to contact us. You can reach us by phone, email, or through our website. We are always ready and happy to assist you.
Additional Resources
For more information on SOCSO for foreign workers, you can visit the following websites or contact the following numbers:
SOCSO official website: This is the main source of information on SOCSO’s services, schemes, benefits, and regulations. You can also access the Assist Portal, which is an online platform for employers and employees to register, pay, and claim SOCSO benefits.
SOCSO hotline: This is the toll-free number that you can call to speak with a SOCSO representative who can assist you with any inquiries or complaints. The number is 1-300-22-8000 and it operates from Monday to Friday, 8:00 am to 5:00 pm.
SOCSO offices: These are the physical locations of SOCSO branches and service centres across Malaysia. You can visit the nearest office to get face-to-face assistance from SOCSO officers or submit any documents or forms. You can find the list and address of SOCSO offices on their website.
Comments