Employer And Employee Eligibility

Act And Regulations

Employees’ Social Security Act,1969 and Employees’ Social Security (General) Regulations, 1971 are applicable to all industries having one or more employees.

 

 

A. Employer

 

  1. Principal Employer
    An employer who employs an employee directly under a contract of service or apprenticeship. The employer is responsible for all matters relating to services and payment of wages.

  2. Immediate Employer
    An employer who employs employees to perform work under the supervision of the principal employer. This includes a person who has a contract of service with an employee and temporarily lends or leases the service of that employee to a principal employer.

 

 

B. Employees


 

Employee’s Eligibility
All employees who are employed under a contract of service or apprenticeship in the private sector and contractual / temporary staff of Federal / State Government as well as Federal / State Statutory Bodies need to be registered and covered by SOCSO. The rate of contribution is capped at monthly wage ceiling of RM4,000.00.

Employees exempted from the coverage of the Employees’ Social Security Act, 1969 are as follows:

  1. Federal and State Government permanent employees
  2. Domestic servants
  3. Self-employed
  4. Spouses of a sole proprietor or a partnership owner