Invalidity scheme to be expanded to foreign workers

Invalidity scheme to be expanded to foreign workers

Invalidity scheme to be expanded to foreign workersIn order to guarantee that foreign workers in the nation are also eligible for the benefits of the invalidity scheme, the Human Resources Ministry will extend its reach to include them.

According to The Edge, Minister V Sivakumar stated that until it takes effect shortly, they are still investigating the issue.

“The ministry is finalizing plans to expand the invalidity scheme provided through the Employees’ Social Security Act 1969 (Act 4) so that it also covers foreign workers brought into the country.

“This is to increase the level of social protection network, and provide justice to workers serving in the various sectors and industries, including foreign workers in the country,” he said.

After attending the Social Security Organization’s (Perkeso) Wednesday luncheon and appreciation day, he told reporters this.

Workers protected by the invalidity scheme against death or disability resulting from causes unrelated to their job.


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Sivakumar went on to explain that, as of right now, the Employees’ Social Security Act of 1969 is the sole way to protect the foreign workers under the employment injury plan.

“Local workers covered by the employment injury scheme and invalidity scheme, with the employer’s contribution rate at 1.75%, while the employee pays 0.5%.

“As for foreign workers, employers will pay 1.25%, while the worker need not pay anything. But with the expansion of the invalidity scheme later, the rate of contribution will standardised with that of local employers and workers,” he said.

In order to provide their employees with protection under the employment injury system, Sivakumar also advised employers of foreign domestic workers to make contributions to the Perkeso scheme.

“Based on records, only 39.67% of the 95,000 foreign domestic workers in this country are covered by the Perkeso scheme, whereas all domestic workers, including foreign workers, must register with and contribute to Perkeso since June 1, 2022.

“These statistics show there are a few employers in the country who still do not comply with the directive,” he said.

According to him, 1.78 million foreign workers actively covered by Perkeso’s employment injury program for foreign workers as of October 1.

“So far, a total of 37,328 accidents involving foreign workers have been reported to Perkeso, with the total amount of social security benefits that has been paid to those insured and their next of kin reaching RM76.57 million,” he said.

In the meantime, Sivakumar stated that the ministry is still in talks with Indonesia over the RM15,000 per person cost of employing domestic staff.

“This matter has not been finalised…what is certain is that we are on the same track, namely to reduce that cost…meetings between the Malaysian and Indonesian officials are ongoing,” he said.

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