PUTRAJAYA: The Social Security Organisation's (PERKESO) Employment Injury Scheme for Non-Work Accident (Lindung 24 Jam) remains mandatory for foreign workers, says Datuk Seri R. Ramanan
The Human Resources Minister said the scheme was now voluntary for local employees following a Cabinet decision made after considering public feedback.
He said the decision, which takes immediate effect, allows Malaysian workers to choose whether to contribute to the scheme based on their own needs and circumstances.
"The Cabinet has decided that contributions to the Lindung 24 Jam scheme will no longer be mandatory for local employees but will instead be implemented on a voluntary basis with immediate effect after taking into account the views of the people," he said in a statement Thursday (July 9)
Ramanan said PERKESO would announce the implementation mechanism and voluntary enrolment process for local employees in the near future.
However, he said contributions to the Lindung 24 Jam scheme would remain mandatory for foreign workers and continue to be enforced under existing legal provisions.
Despite the change, Ramanan stressed that the scheme remains an important social security initiative, providing protection to workers who suffer accidents outside working hours and away from the workplace, including while carrying out their daily activities.
He said safeguarding the welfare and social security of Malaysia's workforce remains PERKESO's highest priority as an agency under the Human Resources Ministry.
Ramanan added that the ministry would review the implementation mechanism of the scheme by the end of the year, including its policy direction, implementation effectiveness and long-term financial sustainability to ensure it remains viable and continues to benefit the people.
"If necessary, the findings of the review will be tabled in Parliament together with proposed amendments to the Employees' Social Security Act 1969 (Act 4)," he said.
He added that PERKESO would continue strengthening public awareness efforts on the importance of social security protection while ensuring the public receives clear and accurate information on the scheme's benefits to help them make informed decisions.
