Social Security Organisation (Socso) will exempt interest on contribution in arrears for employers who have yet to register with them, but they have to do so by June 30 this year.
The exemption is applicable for registration by employers under the Employees Social Security Act 1969 (Act 4) and Employment Insurance System Act 2017 (Act 800).
For employers who have exceeded the duration, a discount will be given for compounds.
These two incentives are offered in conjunction with Socso’s golden jubilee celebration.
Socso chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said both incentives were aimed at reducing employers’ financial burden as the organisation was aware of the difficulties faced by companies in the wake of the Covid-19 pandemic.
He urged employers who were qualified and had yet to register to do so online via www.perkeso.gov.my
Mohammed Azman said that up to Dec 31 last year, 487,706 active employers had registered under Act 4, with 8.57 million employees receiving Socso protection.
He explained that Socso had extended the scope of coverage under Act 4 to foreign workers who were working legally in the country, effective Jan 1,2019. A total of 1.6 million foreign workers have registered to date.
Failure of employers to register their company and their workers within the stipulated period is an offence which can be compounded and prosecuted.
If convicted, an employer can be fined up to RM10,000 or jailed up to two years, or both.
Besides that, the employer could face interest payment at the rate of 6% a year on contribution arrears, if they fail to register within the stipulated period.
From 2010 to Dec 31 last year, 17,471 cases have been received for prosecution under Act 4 for various offences.
In conjunction with its 50th anniversary celebration, Socso is also organising various events.
Among them are photography competition “Perkeso Graphy”, jingle creation and debate contests, poetry declamation, media awards and Penjana Kerjaya Career Carnival 50 Year Socso.
Various corporate social responsibility programmes include “Clean The Planet”, a dedicated programme with single mothers and Socso’s adopted children as well as “Jelajah Prihatin”.
Apart from that, a study on awareness and quality of services by Socso is also being conducted.
The highlight of the celebration is a gala dinner to appreciate employers and those who have contributed throughout Socso’s 50 years.