Less than two months after its rollout, the government has announced that local workers will no longer be required to contribute to PERKESO’s Lindung 24 Jam scheme.
The decision takes effect immediately after being approved by the Cabinet following feedback from various stakeholders.
Local workers can now choose whether to contribute
Human Resources Minister Datuk Seri R. Ramanan said contributions to the Social Security Organisation’s (PERKESO) Non-Employment Injury Scheme, also known as Lindung 24 Jam, is now voluntary for Malaysian workers. This means local employees can decide for themselves whether they wish to contribute based on their individual needs and circumstances.
PERKESO is expected to announce the mechanism and application process for voluntary participation in the near future.
Foreign workers still required to contribute
While the scheme is now optional for locals, Ramanan said contributions will remain mandatory for foreign workers under the existing legal provisions.
Scheme still covers accidents outside working hours
Although participation is no longer compulsory for local workers, PERKESO stressed that the scheme remains an important form of social protection.
Lindung 24 Jam provides coverage for accidents that happen outside working hours and away from the workplace, including during everyday activities. According to Ramanan, protecting the welfare and safety of Malaysia’s workforce remains PERKESO’s top priority.
Government to review scheme later this year
The Human Resources Ministry will also review the implementation of Lindung 24 Jam towards the end of the year. The review will assess the scheme’s policy direction, effectiveness and long-term financial sustainability.
If necessary, the findings may be tabled in Parliament together with proposed amendments to the Employees’ Social Security Act 1969.
Introduced on June 1, Lindung 24 Jam expanded PERKESO’s protection to cover non-work-related accidents at any time and place. The scheme was rolled out in three contribution phases starting at 0.75% of an employee’s monthly wages, fully paid by employees and capped at a monthly wage ceiling of RM6,000.
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