Refers to an employer who has employed an employee directly to work for him. The employer is responsible for the payment of wages and all the service matters of the employee.
Refers to an employer who works for a principal employer or undertakes part of the work of the principal employer by way of a sub-contract. The immediate employer has direct control of the employees employed by him.
The principal and immediate employer who employs one or more employees is required to register and contribute monthly to SOCSO for all employees under the Employees' Social Security Act, 1969 (henceforth refer as Act). The principal employer is also liable to ensure all employees employed by the immediate employer have been registered and their contributions have been paid.
Employers must register at the SOCSO office within 30 days from the date a worker is first employed. For registration, employers are to complete the following forms:-
1) Form 1 (Employer's Registration Form) to be submitted with 2 copies of the following documents:-
(a) Private Limited Companies
• Form 9 (Companies Act, 1965)
• Form 49 (Companies Act, 1965)
(b) Sole-proprietorship or partnership businesses
• Form D (Registration Certification)
• Form A (Business Certification)
(c) Legal firms
• Legal Practicing Certification issued by the Bar Council
(d) Private clinics
• Form 12 ( Medical Practicing Certification - Approval from MMA)
(e) Audit firms
• Companies Act 1965 - Auditors approval
(f) Association / Society
• Form 3 (Regulation 5) Societies Act, 1966 (Societies Regulations, 1984)
• Documents as per required
2) Form 2 (Employee's Registration Form)
The name and both the identity card numbers of an employee has to be written exactly as stated in the identity card. Both the Form 1 and Form 2 should be sent to the nearest SOCSO office which will then issue to the employer an Employer's Code Number. This Code Number will be used in all correspondence with SOCSO.
Under the Act, an employee is defined as a person who has been employed by an employer under a contract of service or apprenticeship.
• Employees Monthly Earning At RM3,000 Or Less
Employees Monthly Earning At RM3,000 Or Less must contribute to SOCSO. SOCSO's coverage is only for employees who are Malaysian citizens and who are permanent residents.
• Employees Monthly Earning More Than RM3,000
Employees Monthly Earning More Than RM3,000 who never registered or contibute to SOCSO are given an option to be covered under the Act provided both the employer and employee have agreed upon the coverage by submitting 3 copies of the Notice of Election and Form 2 to the relevant SOCSO office. That particular employee will only be covered under the Act from the date the relevant SOCSO office accepted the notice.
• Principle Of "Once In Always In"
Employees who have been previously registered with SOCSO and now earn more than RM3,000 must continue to contribute in line with the principle of "Once In Always In" under the First Schedule of the Act. Once an employee is eligible under the Act, he will always be eligible for coverage irrespective of his next monthly wage. All employees eligible for coverage under the Act must register and contribute to SOCSO.
Categories of employees exempted from SOCSO's coverage:-
• Government employees
• Domestic servants
• Self-employed persons
• Foreign workers
• Business owner and spouses of sole-proprietorship or partnership