KUALA LUMPUR: Stern action awaits employers who do not register their workers under the Social Security Organisation (Socso) by the May 31 deadline, it was announced.
Social Security Organisation (Socso) chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed announced an amnesty period until May 31, during which employers can register and contribute without penalties.
This applies to both local and foreign workers, including domestic workers.
Starting in June, Socso will launch the 15th Ops Kesan operation to enforce registration compliance.
“If employers still fail to do so within the amnesty period, enforcement action will be taken against them during Ops Kesan,” he told a press conference at Menara Perkeso here yesterday.
Mohammed Azman said employers who failed to register their employees and businesses under Socso could be compounded up to RM5,000.
“They can also be prosecuted in court and if found guilty, employers can be fined up to RM10,000 or jailed up to two years or both,” he said.
The Socso chief said employers also risked incurring the Late Payment of Contributions (FCLB) penalty at a rate of 6% per annum.
Mohammed Azman said so far, almost 50,000 domestic workers had been registered under Socso but said there were still many not covered.
Employers can register online through the Assist Portal, visit any of the 54 Sosco offices nationwide, or contact Socso’s hotline at 1-300-22-8000, he added.
Ops Kesan aims to ensure that employers who hired at least one worker registered them under Section 4 and 5 of the Employees Social Security Act 1969 (Act 4) and Section 14 and 16 of the Employment Insurance System Act 2017 (Act 800).
Last year’s Ops Kesan found that 21.73% of employers were non-compliant, a slight increase from 18.95% in 2022, mainly involving small-scale employers recovering from the Covid-19 pandemic.
“The figure is high. I hope that by the end of May, all companies that have not registered will do so as soon as possible,” he said.
He also noted that Perkeso found that employers in the sole proprietorship category recorded the highest number of late registration and contribution errors.
“Every year when Ops Kesan is implemented, we see the rate of non-compliance remaining high, resulting in the fundamental rights of workers to get social security protection being overlooked,” he said.
As of March 31, an estimated 1.55 million employers have registered with Perkeso under Act 4 while the number of those actively contributing, with at least one contribution within a period of 12 months, was about 600,819, according to Socso.
Mohammed Azman said the total number of active workers stood at approximately 9.7 million individuals.
Meanwhile, the Youth and Sports Ministry urged all sports associations to ensure that all athletes under their purview are covered by Socso.
Deputy Minister Adam Adli Abdul Halim said that social protection, especially through Socso, was crucial to ensure athletes were covered and protected in all aspects.
He said that athletes under the National Sports Council (MSN) were currently covered by Socso, and this should serve as an encouragement for sports associations to follow suit.
“We strongly encourage sports associations to contribute to Socso, and there have been meetings where Socso was asked to provide information about the schemes available for athletes,” he said after flagging off Khairil Aslan Ab Rasid’s solo cycling expedition across Peninsular Malaysia in Putrajaya yesterday.
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