Socso to review contributions

KUALA LUMPUR: The Social Security Organisation (Socso) is carrying out a review of member contributions as it is paying out more under its pension schemes, compared with its monthly collections.

Human Resources Minister Datuk Dr S. Subramanian said the review will look at all aspects and schemes under Socso with the possibility of imposing higher monthly contributions.

"The review of the schemes is to ensure sufficient funds to meet increasing payouts to those receiving lifelong invalidity and survivor pensions in the long term," he told reporters after launching the 14th Conference and Exhibition on Occupational Safety and Health here Monday.

He said that payout for pension compensation exceeded contributions last October, with the shortfall made up by cross subsidising from existing schemes.

Dr Subramaniam added the review was still ongoing, with proposal for changes to be made to the Government next year.

Last year, Socso paid out some RM1.5bil to 213,000 pension recipients from its collection of RM2bil.

Under the existing scheme, employers and employees contribute a total of 2.25% of monthly income to Socso.

A total of 1.25% of this contribution is for the workers' injury fund while the remaining 1% is for the pension scheme.

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