MEF against increasing contributors’ salary ceiling


  • Nation
  • Sunday, 25 Apr 2004

KUALA LUMPUR: The Malaysian Employers Federation (MEF) disagrees with Socso’s plan to increase the salary ceiling for contributors, saying there is no basis for doing so. 

MEF executive director Shamsuddin Bardan said the issue of raising the ceiling from RM2,000 to RM3,000 was brought up at the last National Labour Advisory Committee meeting on Feb 27. 

However, he said, the MEF objected to the proposal and it was agreed that the Bill to amend the Socso Act 1969 be withdrawn and the Socso board discuss the issue again before any decision was made. 

“MEF does not understand why the chief executive of Socso made the statement confirming the increase despite the fact that the board had yet to meet when it was made,” he said in a statement. 

Media reports on April 19 quoted Socso chief executive Datuk Ng Teck as saying that Socso had raised the salary ceiling to RM3,000. 

Shamsuddin said that under the Socso Act, a review of the salary ceiling may be made but must first meet the criteria, such as changes in the level of earnings based on the consumer price index and on actuarial evaluation. 

“The proposed increase to RM3,000 is higher than the CPI increase of 33.9% for the years between 1992-2002,” he said. 

Shamsuddin said Socso had not made any study on the number of employees whose first salary upon joining the workforce was above RM2,000. 

He said the MEF’s survey findings on salary and fringe benefits for 2003 indicated that the average salary at entry level for graduates was RM1,192 for diploma, RM1,669 for bachelor degree and RM1,834 for honours degree holders. 

Based on the “once in always in” principle, Socso coverage applied to those who first joined the workforce with salaries of RM2,000 and below, he said. 

“Such workers will always be covered by Socso even if their salary subsequently exceeds RM2,000,”he said. – Bernama  

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Next In Nation

Malaysian Bar files legal suit to have parts of Emergency Ordinance declared unlawful
Future Malaysia-Tajikistan partnership in aviation, logistics in the works, says Dr Wee
Man found dead in mangrove forest while hunting for snails
Larry Sng's former millionaire father declared bankrupt
Two Singaporeans among 15 suspects arrested for illegal gambling in JB
Five teens arrested over alleged assault of 14-year-old boy in 'Abang Vadai' video
Overused transport hub KL Sentral to be upgraded in long-term plan, says Dr Wee
Inter-zone tourism allowed in Sabah, but only through ministry-registered firms
Man jumps off Penang Bridge to rescue wife
Almost 4,000 primary pupils in Sabah given supplies and hygiene kits under Yayasan Petronas programme

Stories You'll Enjoy


Vouchers