PETALING JAYA: The Cabinet has decided that contributions to the Social Security Organisation's (PERKESO) Employment Injury Scheme for Non-Work Accident (Lindung 24 Jam) will no longer be mandatory, with immediate effect.
The government spokesman Datuk Fahmi Fadzil said the decision means the contribution of 0.75% of an employee's salary will now be voluntary.
"The Prime Minister (Datuk Seri Anwar Ibrahim) raised the feedback received regarding the implementation of the 0.75% contribution from employees' salaries for PERKESO’s Lindung 24 Jam scheme.
"Following this, the Cabinet has decided that the contribution will no longer be mandatory but instead be implemented on a voluntary basis, effective immediately.
"The Human Resources Ministry will issue a further statement on this decision," said Fahmi, who is also the Communications Minister, in a statement on Wednesday (July 8).
Previously, it was reported that more than nine million contributors under the Employees' Social Security Act 1969 (Act 4) were automatically covered against non-workplace accidents from June 1.
Human Resources Minister Datuk Seri R. Ramanan was quoted as saying that the Lindung 24 Jam scheme, introduced through amendments to the Employees' Social Security Act 1969, provides broader social security protection in Malaysia, including during public holidays and other days off.
Ramanan said contributions to the Lindung 24 Jam scheme are to be borne entirely by employees and implemented in phases, subject to the contribution wage ceiling of RM6,000.
For the initial phase, the contribution rate was set at 0.75% of an employee's monthly salary, with employers responsible for deducting the amount from employees' wages and remitting the contributions to PERKESO each month.
