Personal Finance Term
Social Security Organisation
A government scheme that protects employees against workplace injury, occupational disease, and invalidity through monthly employer and employee contributions. It provides medical care, disability pensions, and survivor benefits.
SOCSO (PERKESO) runs three schemes: the Employment Injury Scheme, which covers accidents at work, commuting accidents, and occupational diseases; the Invalidity Scheme, which pays a pension if you become permanently unable to work from any cause before retirement age; and, since 1 June 2026, LINDUNG 24 Jam, which covers injuries outside work. Benefits include medical treatment, temporary and permanent disablement payments, a dependants' benefit if a worker dies, and rehabilitation. Contributions are a percentage of wages up to RM6,000 a month. For an employee under 60, the employer pays 1.75% and the employee 1.25% (0.5% invalidity plus 0.75% LINDUNG 24 Jam); at 60 and over the employer pays 1.25% and the employee 0.75%. LINDUNG 24 Jam has been voluntary for local employees since 8 July 2026, so an employee who opted out pays 0.5% (nil at 60 and over); foreign workers must pay it. The salary calculator shows the figures for your pay.
For most employees, SOCSO is a valuable baseline of protection that sits beneath any private insurance you buy. It is separate from EPF (retirement savings) and from EIS (job-loss benefits), though all three are administered for the same workforce. Registration is automatic through your employer, and you can check your contribution record and submit claims through the PERKESO Assist portal.