Employer And Employee Eligibility
Act And Regulations
The Employees’ Social Security Act, 1969 and the Employees’ Social (General) Regulations, 1971 are applicable to all industries having one or more employees.
- Employers are categorised into two, namely principal employer and immediate employer.
- Principal Employer
An employer who directly employs an employee under a contract of service or apprenticeship. All matters relating to services and payment of wages are handled by them.
- Immediate Employer
An employer who employs an employee by or through him to perform work under the supervision of a principal employer. This includes a person who has a contract of service with an employee and temporarily lends or lease the service of that employee to a principal employer.
- Employer’s Responsibility
Principal and immediate employers who employ one or more employees are responsible to register and pay contributions to SOCSO.
The principal employers are also accountable to ensure the registration and payment of contributions for all employees employed by the immediate employer.
The employer is obliged to report all work related accident that befalls their workers within 48 hours of notification.
- All eligible Malaysian citizens and permanent residents employees are compulsory to register.
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 insured under SOCSO. Contribution will be capped at monthly remuneration of RM4,000.00.
Employees exempted from Employees’ Social Security Act 1969
coverage are as follows:
- Federal and State Government permanent employees
- Domestic servants
- Sole proprietor or owners of partnership
- Spouse/s of a sole proprietor or partners
- Foreign workers