KUALA LUMPUR: A two-month grace period - from May 2 to June 30 - will be given for employers to register their companies and employees with the Social Security Organisation (Socso) before the start of the 14th Ops Kesan in July.
Those who register within the grace period will also be exempted from needing to pay any compounds or interest on late payment of contributions (FLCB) even if they have exceeded the previously set period to register and contribute, said Socso CEO Datuk Seri Dr Mohammed Azman Aziz Mohammed.
Mohammed Azman said that the extended grace period this year was to ensure all employers and employees would have the opportunity to register in time.
"In previous Ops Kesan operations, we found that there were still a significant number of employers who were either unaware of the grace period given or learned about it too late leaving them unable to register in time.
"As such, we plan to utilise all available platforms and hold more awareness campaigns within the next two months to spread awareness of this grace period as much as possible," he said during a press briefing at Menara Perkeso on Tuesday (May 2).
He noted that all employers, even those with a single worker, are required to register and contribute based on the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
Those who fail to do so after the grace period will face compounds of up to RM10,000 or up to two years imprisonment or both.
Employers will also be charged Interest on Late Payment of Contributions at a rate of 6% of total late payment for each year that contributions were not paid.
As of March 31, close to 1.15 million active employers have registered under Sosco - covering over 9.31 million workers.
However, only 573,390 registered employers are active contributors to Socso and of the 2.3 million foreign workers registered, only 52% or 1.2 million have actively contributed to Sosco.
Registration can be done at any Socso office around the country or through their online portal ASSIST or contact their careline at 1-300-22-8000.
