Invalidity Pension is:

• Payable to the eligible insured persons who have been certified invalid by the Medical Board or Appellate Medical Board
• Payable from the date Notice of Invalidity is received or from the employee’s resignation date if he / she resigns after the Notice of Invalidity is received by Organisation
• Payable as long as the employee is invalid or until death
• Replaced by Survivors’ Pension if the Invalidity Pension recipient dies, regardless of his / her age

Qualifying Conditions

• Not attained 60 years of age at the time Invalidity Notice is received; or
• In the event that the employee exceeded 60 years of age (with effective from 1 January 2013) at the time the Invalidity Notice is received, he/she must show evidence of:
  - Suffering from a specific morbid condition of permanent nature
  - Incapable of engaging in any substantially gainful activities
  - A morbid condition that has set in before attaining 60 years of age and has not been gainfully employed since then
• Certified invalid by the Medical Board or Appellate Medical Board
• Fulfills the qualifying contribution conditions either full or reduced qualifying period
  
  

Full Qualifying Period
Insured Persons are deemed to have fulfilled the qualifying period for full contribution if:

• Their monthly contribution has been paid for at least 24 months within a period of 40 consecutive months prior to the month in which their Invalidity Notice is received by PERKESO; or
• Their monthly contribution has been paid for not less than 2/3 of the complete months comprised between the date when contribution first become payable and the Invalidity Notice is received by PERKESO (the total number of monthly contributions that has been paid within that period must be at least 24 months).

Invalidity Pension Rate 
The rate of Invalidity Pension for full qualifying period is from 50% to 65% of the average assumed monthly wage subject to a minimum pension of RM550 per month.

The Insured Persons are entitled to receive a pension at the rate of 50% of the average assumed monthly wage, increase by 1% for every 12 months contributions that are paid in excess. However, the rate of monthly pension shall not in any case exceed 65%.

Example of Calculations for Full Qualifying Period:

i. Monthly contribution have been paid not less than 24 months within 40 months

- Date of joining the scheme    : 01/03/2012
- Date of Notice of Invalidity received   : 01/07/2015
- 40 consecutive months preceding the month of Notice received   : 03/2012–06/2015

Based on the above example, employees are eligible to receive a pension at a rate of 50% of their average assumed monthly wages.

ii. Monthly contribution have been paid not less than 2/3 of the number of complete months when contribution first become payable

i. Date of joining the scheme               :  01/07/1999
ii. Date of Notice of Invalidity received  : 01/01/2015
iii. Number of monthly contributions for
July 1999 to December 2014     :  186 months
iv. 2/3 monthly contributions paid         : 2/3 x 186 months = 124 contributions

• Based on the above example, employees are eligible to receive a pension at the rate of 59% of the average assumed monthly wage based on the following calculation:
  
  

  Reduced Qualifying Period
  The rate of Invalidity Pension for reduced qualifying period is 50% of the average assumed monthly wage subject to a minimum pension of RM550 per month.
  
  Insured Person are deemed to have fulfilled the reduced qualifying period if:

  • Their monthly contribution has been paid for not less than 1/3 of the complete months comprised between the date when contribution first become payable and the Notice of Invalidity is received by Organisation
  • The total number of monthly contributions that has been paid within that period must be at least 24 months
    
    

  Example of Calculations for Reduced Qualifying Period:

  1. Monthly contribution have been paid not less than 1/3 of the number of complete months when contribution first become payable
     Date of joining the scheme               > 01/07/1999
     Date of Notice of Invalidity received  > 01/01/2015
     Number of monthly contribution for
     July 1999 to December 2014            > 186 months
     1/3 monthly contributions paid         > 1/3 x 186 months = 62 contributions
  

Based on the above example, employees are eligible to receive a pension at the rate of 50% of the average assumed monthly wage.

Invalidity Grant is payable to the eligible Insured Persons who have been certified invalid by the Medical Board or Appellate Medical Board but not eligible for Invalidity Pension due to failure to fulfill any qualifying contribution conditions.

The amount for Invalidity Grant is equivalent to the contributions paid by employee and employer under Invalidity Scheme with interest. It is a one-time lump sum payment.

This allowance is paid to an Insured Person who has been certified and is so severely incapacitated as to constantly require the personal attendance of another person, as recommended by the Medical Board.

This allowance is fixed at RM500 per month.

1. Survivors’ Pension is payable to the eligible dependants of an Insured Person who dies irrespective of the cause of death not related to employment.
   
   Qualifying Conditions

   • The Insured Person dies before attaining 60 years of age (effective from 1 January 2013) and fulfills the qualifying conditions either full or reduced qualifying period
   • The Insured Person who is receiving Invalidity Pension dies regardless of his age

   
   Full Qualifying Period
   Insured Person shall be deemed to have completed a full qualifying period if:

   • Monthly contributions have been paid for at least 24 months within a period of 40 consecutive months preceding the month of his death; or
   • Monthly contributions have been paid for not less than 2/3 of the complete months comprised between the date when contribution first become payable and the date of his death provided that the total number of monthly contributions paid shall be at least 24 months

   Survivors’ Pension Rate
   The rate of Survivors’ Pension for full qualifying period is from 50% to 65% of the average assumed monthly wage subject to a minimum pension of RM550 per month.
   
   The dependants are entitled to receive a pension at the rate of 50% of their average assumed monthly wage, increased by 1% for every 12 months’ contributions that are paid in excess of the first 24 months provided that the rate of monthly pension shall not in any case exceeds 65%.
   
   Note: If the deceased was a recipient of Invalidity Pension, the rate of Survivor’ Pension is equivalent to the rate of Invalidity Pension received by the deceased.
   
   Example of calculations: 

   1. Monthly contributions have been paid not less than 24 months within 40 months
      Date of joining the scheme              >  01/09/2011
      Date of death                                 > 01/01/2015
      40 consecutive months preceding
      the month of death                         > 09/2011-12/2014
   
   
   
   
2. Dependants are eligible to receive a pension at a rate of 50% of their average assumed monthly wage.
   1. Monthly contributions have been paid not less than 2/3 of the number of complete months when contributions first become payable
      Date of joining the scheme                > 01/07/1999
      Date of death 01/01/2015
      Number of monthly contributions
      from July 1999 to December 2014     > 186 months
      2/3 monthly contributions paid          > 2/3 x 186 months = 124 contributions
3. 
   
   

   Dependants are eligible to receive a pension at the rate of 59% of the average assumed monthly wage based on the following calculation:

   
   

1. Reduced Qualifying Period
   The rate of Survivors’ Pension for reduced qualifying period is 50% of the average assumed monthly wage subject to a minimum pension of RM475 per month.
   
   Insured Persons are deemed to have fulfilled the reduced qualifying period if:
   

   • Their monthly contributions have been paid for not less than 1/3 of the complete months comprised between the date when contribution first become payable and the date of his death.
   • The total number of monthly contributions that has been paid within that period must be at least 24 months.

   
   Example of Calculations:

   1. Monthly contributions have been paid not less than 1/3 of the number of complete months when contributions first become payable
      Date of joining the scheme                 > 01/07/1999
      Date of joining the scheme                 > 01/01/2015
      Number of monthly contributions        
      from July 1999 to December 2014      > 186 months
      1/3 monthly contributions paid           > 1/3 x 186 months = 62 contributions
   
   
   
   
   1. Based on the above example, dependants are eligible to receive a pension at the rate of 50% of their average assumed monthly wage.
      
      

   Dependants and Daily Rate
   The daily rate of Survivors’ Pension is based on the following priorities:
   
   
   
   

   If an employee dies and does not leave any widow or widower or children, the Survivors’ Pension will be paid to:
   
   
   

Amongst the facilities provided are:

• Physical rehabilitation includes:
   Physiotherapy 
   Occupational therapy
   Reconstructive surgery
   Supply of prosthetics, orthotics and other appliances
   Supply of orthopaedics apparatus such as wheelchair, crutches, hearing aid, spectacles, special shoes and others
  
  
• Vocational rehabilitation includes:
   Training in courses such as electrical, sewing, radio / TV repair, typing and others
  
  
• Dialysis facilities for Insured Persons suffering from chronic renal failure includes:
   Haemodialysis treatment at PERKESO’s panel and non-panel dialysis centre or Government Hospitals
   Continuous Ambulatory Peritoneal Dialysis (CAPD)
   Subsidy aid for Erythropoietin (EPO) injection
   Subsidy aid for Immunosuppressant medicine
   Payment for Arteriovenous (AV) Fistula surgery
  
  All expenses incurred for the above rehabilitation facilities will be borne by PERKESO based on stipulated rates, terms and conditions.

Funeral Benefit with amount of RM3,000 (effective from 1 June 2024) will be paid to the eligible person if the employee dies due to any cause. In the absence of such person, the benefit will be paid to the person who actually incurs the expenditure.

The amount paid will be the actual amount incurred or RM3,000 whichever is lower.

This benefit is in the form of loans may be provided to a dependant’s child of an Insured Person who:

• Dies while receiving Invalidity Pension
• Dies before attaining the age of 60 years but has completed a full or a reduced qualifying period
• Is a Invalidity Pension recipient

Note: Application subject to terms and conditions specified by PERKESO.

Service Charge PERKESO Education Loan

Effective 1st January 2013, service charge education loan for all borrowers who received education loan offered before 1st January 2009 has been reduced from 4% to 2%. Meanwhile, for new borrowers who received education loan offered after 1st January 2009, services charged still remain at 2%.