Extension of Invalidity Scheme Coverage to Foreign Workers
Invalidity Scheme
Recently, SOCSO announced under the Employee’s Social Security Act 1969 (Act 4), Employer Circular No. 2 Year 2024, that employers who employ foreign workers, including expatriates and foreign domestic workers, are obligated to ensure that their foreign workers are covered under the Invalidity Scheme.
Effective date and applicability
Effective from 1 July 2024, all foreign workers, including expatriates, will be required to contribute the same as local workers under Category 1, which encompasses both the Employee and Employer contributions. This change is mandated by the Employees’ Social Security Act 1969 (Act 4).
Employers who employ foreign workers, including expatriates and foreign domestic workers, must ensure these employees are protected under the Invalidity Scheme.
Foreign workers must possess a valid pass or permit issued by the Director General of Immigration for employment in Malaysia. All employers must mandatorily contribute to SOCSO for their foreign workers.
Category contribution
Conclusion
The implementation of the Invalidity Scheme by SOCSO represents a significant step towards ensuring comprehensive social security coverage for all workers in Malaysia, including foreign employees. This initiative underscores the importance of safeguarding the well-being of foreign workers, who are integral to the nation’s economic growth. Employers must stay informed and comply with these regulations to foster a secure and supportive work environment.
