Allow employers to pay for coverage in one lump sum

SOCIAL security coverage was extended to domestic workers, both local and foreign, under the Employees’ Social Security Act (Act 4) and Employment Insurance System (Act 800) with effect from June 1, 2021. The scheme is managed by the Social Security Organisation (Socso).

The following year, the Housewives’ Social Security Scheme was implemented on Dec 1 under the Housewives’ Social Security Act 2022. Socso is also managing the scheme, which is voluntary in nature.

The scheme requires husbands who sign up to pay RM120 in advance to Socso to provide protection for their wives over a 12-month period. Housewives can also make their own contributions.

To date, contributions to Socso for coverage of domestic workers are paid monthly by employers on the online portal (FPX), which is the preferred method. Payments can also be made via the appointed banks or Internet banking.

For an Indonesian worker with a salary of RM1,500, the contribution is RM19.40 per month, or RM232.80 per year. For a Filipino worker with a salary of RM1,680, it is RM20.60 per month, or RM247.20 per year.

I am appealing to our Human Resources Minister to give employers the option to pay the contributions in advance in one lump sum for the whole year, as is being done for the Housewives’ Social Security Scheme.

Employers can decide whether to use this option if it is provided. As the majority of families employ only one domestic worker, it would be less troublesome to pay the contribution of less than RM250 in one lump sum instead of over a period of 12 months.

Assuming that half a million households employ domestic workers, the total amount in advanced contributions together with payments from the Housewives Social Security Scheme will provide about RM485mil upfront to Socso yearly.

Employers who depend on agencies to pay their domestic workers’ monthly insurance contributions are certainly paying substantial sums for the service.

For easy implementation, payment of the insurance contribution for the whole year could commence upon obtaining approval for the work permit from the Immigration Department.

With regard to the renewal of the annual work permit, I would also appeal to the chief executive officer of Socso to please accept our email replies with the data requested instead of forcing us to respond via the ASSIST Portal, which is not user-friendly, especially for senior citizens.

RETIREE

Klang