THE Social Security Organisation (Socso) will enforce a new monthly salary ceiling for contribution purposes from tomorrow.

A total of 1.5 million workers – both local and foreign – or 19% of total Socso contributors nationwide will be involved in this increase, chief executive officer Dr Mohammed Azman Aziz Mohammed said.

He said the increase follows the amendment of the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800), which involved increasing the salary ceiling for contribution purposes from RM4,000 to RM5,000 per month.

He said a higher salary ceiling will improve Socso’s social security coverage by increasing existing benefits payment rate up to 25.3%.

“The benefits cover, among others, temporary disability, permanent disability, dependents, survivor’s pension and invalidity pension under Act 4, as well as Job Search Allowance, Reduced Income Allowance and Early Re-employment Allowance under Act 800.

“Starting next month, the contribution amount that will apply to employees with a salary exceeding RM4,000 per month is as stated in the Third Schedule, Act 4 and the Second Schedule, Act 800. For employees with a salary exceeding RM5,000 per month, the contribution amount is according to the salary ceiling of RM5,000,” he said in a statement today.

Azman said the contributions should be made by the employer according to the new salary ceiling from next month onwards.

“Employers are requested to record the contribution deductions in the statement or pay slip of their respective employees for the purpose of records and inspection by Socso,” he said.

He added that since the establishment of Socso in 1971, the salary ceiling has been increased five times.

He said the measures implemented were in line with the agency’s ongoing efforts in providing more comprehensive social protection to contributors and their dependents. – Bernama, August 31, 2022.