Social Security

Malaysia | SOCSO’s Non-Employment Injury Scheme (LINDUNG 24 JAM) Key FAQs, contributions and employer obligations

Summary

Further to our alert dated 18 March 2026 on the introduction of Non-Employment Injury Scheme (LINDUNG 24 JAM) by Malaysian Social Security Organisation (SOCSO, locally known as PERKESO), we set out below a summary of the key clarifications based on their latest Frequently Asked Questions.

The Malaysian Government has gazetted the Employees’ Social Security (General) (Amendment) Regulations 2026 [P.U.(A) 206], effective 1 June 2026. These amendments introduce regulatory changes to the Employees’ Social Security framework, particularly in relation to the administration of non-employment injury coverage and should be read together with the implementation of the LINDUNG 24 JAM Scheme.

The detail

1. Coverage Scope and Applicability

The scheme applies to employees who are registered and contributing to SOCSO under the Employees’ Social Security Act 1969 (“Act 4”).

Key clarifications include:

• No retroactive coverage: Accidents occurring before the effective date of the scheme are not covered. Coverage only applies to accidents on or after the date the scheme comes into force.
• Coverage is extended to eligible employees automatically upon commencement of contributions.
• Foreign employees who are registered under SOCSO are also covered under the scheme, subject to statutory eligibility requirements.
• Contract and part-time employees are eligible provided they are registered and contributing to SOCSO.
• The scheme covers accidents occurring outside working hours only. It does not cover illnesses or diseases (including occupational diseases), fraudulent or criminal acts, self-inflicted injuries or suicide, accidents occurring before the scheme’s effective date, or accidents occurring when the employee is not eligible for coverage (e.g. not contributing or not yet covered under SOCSO).

2. Mandatory Nature of Contributions

Contributions under the LINDUNG 24 JAM Scheme are mandatory for all employees (including local and foreign employees) who fall under SOCSO coverage under Act 4, provided the individual is within the SOCSO contributory framework.

This includes full-time, contract and part-time employees, subject to registration requirements.

3. Contribution Structure and Rates

The scheme introduces an additional employee-funded contribution mechanism: –

• Contributions are fully borne by employees
• Employers are responsible for deducting and remitting contributions to PERKESO
• Contributions are calculated based on monthly wages, subject to a ceiling of RM6,000

Phased contribution rates:

• Phase 1 (first 2 years):75%
• Phase 2 (next 3 years): 1.00%
• Phase 3 (6th year onwards):1.25%

These contribution rates are published by SOCSO via its official website and may be subject to further updates or revisions in accordance with regulatory or administrative changes.

For foreign employees currently covered under PERKESO, employers would continue to pay the existing employer contribution (currently cap at RM29.75 per month for foreign workers under the Employment Injury and/ or Invalidity Scheme) and additionally deduct the employee’s LINDUNG 24 JAM contribution from the employee’s salary.

4. Definition of Wages

For purposes of contribution calculation under the scheme, “wages” follow the definition under Section 2(24) of Act 4, which includes all remuneration payable to an employee, including overtime, leave pay, and additional work performed on rest days or public holidays, excluding: –

• Statutory contributions (e.g. pension funds or SOCSO contributions)
• Travel allowances or travel concessions
• Special expenses incurred in the course of employment
• Retirement or termination benefits
• Annual bonuses
• Any other remuneration prescribed by the Minister

5. Effective Date, Grace Period, and Payment Timeline

• The scheme takes effect from June 2026 wage month.
• Contributions are payable by the 15th of the following month (first payment due by 15 July 2026).
• SOCSO will provide a six (6) month grace period after enforcement. During this grace period: –
  • Employers are exempted from penalties or legal action specifically for non-compliance relating to LINDUNG 24 JAM contributions.
  • However, other statutory obligations under applicable laws remain in force.
  • Employers should note that the grace period does not remove the obligation to comply but temporarily suspends enforcement action for contribution-related non-compliance.

6. Key Employer Implications

Employers should take note of the following: –

• No re-registration is required for existing employees, as coverage is automatically extended under SOCSO records.
• New employees hired after the effective date must be duly registered under SOCSO as usual.
• Payroll systems must be updated to reflect the additional deduction category.
• The scheme is implemented from June 2026 wage month, with first payment due by 15 July 2026.
• There is no grace period for late payment of contributions outside the specific enforcement grace window provided by SOCSO.
• Outside the grace period, late payment may result in: –
  • Late payment interest / dividend charges imposed by SOCSO
  • Enforcement action under the Act 4
  • Penalties for failure to remit contributions on time

7. Employees with Multiple Employers*

• Employees with more than one employer are required to designate one employer for the purpose of LINDUNG 24 JAM contributions.
• This requirement is formalised under the Employees’ Social Security (General) (Amendment) Regulations 2026 [P.U.(A) 206], which provides the following process:

1. Notification by SOCSO – SOCSO may issue a written notice to the employee requiring the designation of one employer for non-employment injury contributions.
2. Employee designation within 30 days – Upon receipt of such notice, the employee is required to designate one employer within 30 days and submit the decision in writing to SOCSO.
3. Default determination by SOCSO – Where no designation is made within the prescribed timeframe, SOCSO may determine the relevant employer and notify the employer accordingly.
4. Subsequent change due to cessation of employment – If the employee ceases employment with the designated employer, the employee is required to notify SOCSO within 7 days of such cessation.

* Note: The detailed administrative process (including the manner in which notices are issued, and responses are submitted) may be subject to further guidance or operational implementation by SOCSO. These processes may be facilitated via SOCSO’s official platform at https://lindungfaedah.perkeso.gov.my/, subject to further announcements.

8. Self-Employed Persons

• Self-employed individuals are not covered under the LINDUNG 24 JAM Scheme.
• They remain subject to separate coverage under the Self-Employment Social Security Scheme (Act 789).

9. Claims and Benefit Administration

• Claims may be submitted via SOCSO’s LINDUNG Benefits Portal.
• Alternatively, claims may be submitted by furnishing notice of accident in Form 34 at any SOCSO office.
• Supporting documents must be provided at the time of submission such as a copy of the notice to an Insurance Medical Practitioner, police report on the accident or any other documents as may be determined by SOCSO.

10. Enforcement and Non-compliance

• Employees may lodge complaints with SOCSO if employers fail to deduct contributions.
• SOCSO is empowered to conduct inspections, investigations, and enforcement actions.
• Failure by employers to comply may result in prosecution.
• Upon conviction, employers may be liable to:
  • Imprisonment of up to two (2) years, or
  • A fine of up to RM10,000, or
  • Both

11. Malaysia employment tax implications

If an employer elects to bear both this contribution in respect of the employee, it will be treated as a taxable perquisite. This will result in the following:

• Additional employment income subject to tax in Malaysia
• Higher monthly tax deduction (MTD) and tax payable during annual tax return filing
• Increased employer compliance obligations in payroll and tax reporting

How we can help

Although the contribution is solely borne by the employee, employers are still responsible for ensuring compliance with the relevant contribution requirements. Any failure to deduct or remit the required contributions accurately and timely may expose employers to arrears, late payment interest and possible regulatory enforcement action.

Employers are therefore encouraged to review their payroll processes to remit the correct amount of SOCSO contributions, ensure operational readiness for the implementation of the new employee contribution deductions and proactively communicate the new protection coverage and contribution requirements to employees prior to the commencement of the first deduction cycle.

As part of our tax and social security advisory services, we are ready to assist employers in assessing SOCSO obligations (for local and foreign employees), payroll review support for the LINDUNG 24 JAM contribution deductions, ensuring timely compliance with statutory remittance requirements, and advising on related enforcement risks and penalty mitigation strategies, as well as responding to SOCSO queries or audits and provide practical guidance to HR and payroll teams on implementation readiness.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Hilda Liow
Partner

Lim Phing Phing 
Partner

Wee Lay Har
Director

Loh Zi-Lynn
Senior Manager

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