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.
- Employers are categorised into two (2), namely principal employer and immediate employer.
- 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.
- 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.
- Employer’s Responsibility
The principal and immediate employers who employ one or more employees are responsible to register and contribute to Social Security Organisation (SOCSO) based on the rates specified under the Employees’ Social Security Act, 1969, administered by SOCSO.
The principal employers are also responsible for ensuring that all workers employed by immediate employers are registered with SOCSO and the contributions are paid accordingly.
Employers are responsible for reporting all work-related accidents that befall their workers within 48 hours of notification.
- It is compulsory for all eligible employees who are Malaysian citizens and permanent residents 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 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:
- Federal and State Government permanent employees
- Domestic servants
Spouses of a sole proprietor or a partnership owner