Let me ask you a quick question. Do you know what EPF is? What about SOCSO? Well, most people are aware of what EPF is, but SOCSO is less popular and not many know about it. Did you notice that your monthly salary is allocated for SOCSO from both employers as well as employees? Where does the money go? Why should you pay for SOCSO? Okay, let's get the basic idea of what SOCSO is.

1. How can SOCSO help you?

SOCSO provides aid both medically and financially to every employee who has had their abilities reduced or incapacitated due to accidents or diseases. SOCSO also provides assistance to the dependents of the employees through pensions if they die. SOCSO is divided into the Employment Injury Scheme and the Invalidity Pension Scheme:

(i) Employment Injury Scheme Benefits:

• Medical benefits
• Temporary disablement benefit
• Permanent disablement benefits
• Constant attendance allowance
• Rehabilitation benefit
• Return to work programme
• Dependent benefit
• Funeral benefits
• Education benefits.

(ii) Invalidity Pension Scheme:

• Invalidity pension
• Invalidity grant
• Survivors' pension
• Funeral benefit
• Facilities for Physical Rehabilitation and Dialysis
• Education Benefits

2. Free medical check-ups

Do you know that SOCSO can provide Malaysians with free health check-ups as an initiative? Well, it takes an effort to undergo the entire process but it's worth it as long as you get free medical check-ups.

3. How about workers that are self-employed?

Even self-employed people can get benefits from SOCSO. For example, taxi drivers are eligible for the SOCSO protection scheme. Yes, you heard it right, taxi drivers can contribute to SOCSO to safeguard their welfare. 

4. Is SOCSO Compulsory?

SOCSO is compulsory for all Malaysian employees with monthly salaries lower than RM3,000, but it's optional for those with starting salaries above RM3,000. So if your salary is above RM3,000, you can choose to either contribute or not, although if you think of all the benefits and your future needs, it's actually a good move.

5. How much do you contribute to SOCSO?

Do you know how much you're contributing to SOCSO? You should be aware of the rate of your contribution. These are 2 categories for SOCSO:

First Category: Employment Injury And Invalidity Schemes

1. All employees below 60 years old are required to participate in this category.

2. You should be aware that only 0.5% of employee’s monthly wages should be extracted out for the contribution. Any figures that suggest higher should be reported.

Second Category: Employment Injury Scheme Only

1. Employees who 60 years old and above and are still working

2. Employees above 55 years old who has made their first SOCSO contribution

3. Insured Person receiving Invalidity Pensions, still working but receiving less than 1/3 of the average monthly wages before the invalidity

4. Employer to bear the contribution costs to SOCSO at 1.25% of monthly wages

*Source: Loanstreet