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Local workers can now choose whether to join the scheme, while foreign workers remain covered by mandatory contributions as the government reviews the policy’s long-term direction.
The government has made contributions to the Social Security Organisation's (SOCSO, or PERKESO)'s LINDUNG 24/7 protection scheme voluntary for local workers with immediate effect, following public feedback on the proposed rollout.
The Cabinet decided that contributions to the Non-Disaster Occupational Accident Scheme under PERKESO would no longer be compulsory for Malaysian workers, giving them the choice to opt in based on their own needs and circumstances.
However, contributions to the 24-hour protection scheme remain mandatory for foreign workers and will continue to be enforced under existing legal provisions.
According to PERKESO, the implementation mechanism and voluntary participation process for local workers would be announced in the near future.
Although participation is now optional for local workers, PERKESO stressed that LINDUNG 24/7 remains an important social protection initiative that provides social security protection to workers in the event of accidents outside of work hours and places, including while carrying out daily activities.
PERKESO added that protecting the welfare and safety of Malaysia’s workforce remains a top priority for the agency under the Human Resources Ministry ( KESUMA).
KESUMA is expected to review the scheme’s implementation mechanism by the end of the year. The review will look at policy direction, effectiveness of implementation and sustainability of funds to ensure that this scheme remains sustainable and benefits the people.
If needed, the findings may be tabled in Parliament as part of proposed amendments to the Employees’ Social Security Act 1969 [Act 4].
PERKESO also said it would continue efforts to raise awareness about the importance of social protection and ensure the public receives clear and accurate information on the scheme’s benefits, allowing workers to make informed decisions.
Lead image / Screenshot from Minister Ramanan's Facebook reel
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