Compulsory SOCSO Coverage for Domestic Workers (2021)

Recently, the Malaysian Human Resources Ministry, through the Social Security Organisation (SOCSO, also known as PERKESO), announced the extension of social security protection coverage to domestic workers effective 1 June 2021. If you are a Malaysian employer of a foreign domestic worker, this new government rule needs to be complied with (kindly note if you are a foreign national hiring a foreign domestic worker, this new ruling does not apply to you).

Here’s what you need to know:

1. Foreign domestic workers are covered under the ‘Employment Injury Scheme’ of Act 4, where they are able to claim, due to workplace accidents, the following benefits:

  1. Medical benefit
  2. Temporary disability benefit
  3. Permanent disability benefit
  4. Dependent benefit 
  5. Permanent service allowance
  6. Physical/Vocation/Return to Work/Dialysis benefits
  7. Corpse management benefits, in the event of death

2. Under this scheme, employers are mandated to contribute 1.25% of their workers’ monthly salaries, including overtime pay to SOCSO. Workers are exempted from contribution. Payments can be made via SOCSO’s online Employer ASSIST Portal. 

3. Employers of foreign domestic workers with existing private insurance coverage are exempted from contributions only up to 31 May 2022. This is in line with the government’s granting of a one-year cooling period since the new ruling came into effect on 1 June 2021. After 31 May 2022, employers must register and contribute through SOCSO by 1 June 2022 even if their worker’s existing policy only expires after 31 May 2022.

Here’s what you need to do:

Step 1

Check the expiry date of your workers’ current Domestic Maid Insurance Scheme (DMIS) policy.

Step 2

Depending on the expiry date of the policy, be sure to register yourself as an employer of a domestic worker and register your worker as a legally hired foreign domestic worker on SOCSO’s online ASSIST Portal. You can begin registering on the portal on 16 June 2021.

To kick-start the registration process, you first need to submit an application to receive your first-time login User ID and password for the portal (which may take up to 7 business days). For more information, see here (SOCSO).

Step 3: 

After uploading the required documents and filling in the required details to complete the employer and domestic worker registrations, you will be able to begin making contributions monthly. Be sure to make all contributions by the 15th of the following salary month to avoid late payment penalties!

For more information, you may visit this page (SOCSO). Kindly note once more that the registration (for contributions) of domestic workers is compulsory under Act 4!

Here at Pinkcollar, we are more than happy to guide you through this process. Please do not hesitate to contact us to enquire about the various services we provide. E-mail us today at [email protected]!