EMPLOYERS have asked for more time to provide foreign workers with Social Security Organisation (Socso) coverage, which goes into effect on January 1, reports The Star. 

Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan said employers should not be prosecuted in the first year but instead be given government support.

“The government should give more briefings on the scheme rather than crack down on employers. Taking action is unwarranted because a change of system is not easy, it takes time,” he was quoted as saying.

Employers also need to prepare to spend more on the 1.25% Socso contribution, he said, adding more than RM400 million to the wage bill.

On November 21, Human Resources Minister M. Kulasegaran said the cabinet had agreed to put foreign workers under Socso, which is in line with the International Labour Organisation convention, of which Malaysia is a signatory.

The rule is applicable to employers who hired foreign workers with valid documents, including expatriates.

The Federation of Malaysian Manufacturers also requested a year’s grace period before full implementation of the scheme. 

Its president, Soh Thian Lai, said foreign workers are currently covered by insurance schemes for any injury sustained at a workplace. – December 25, 2018.