MTUC: Socso contribution rate should be increased, but only for employers

MTUC president Datuk Abdul Halim Mansor said in developed countries, including Singapore and Australia, all workers’ social protection contributions were the responsibility of employers and paid in full by them. — Picture by Choo Choy May
MTUC president Datuk Abdul Halim Mansor said in developed countries, including Singapore and Australia, all workers’ social protection contributions were the responsibility of employers and paid in full by them. — Picture by Choo Choy May

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KUALA LUMPUR, March 11 — The Malaysian Trades Union Congress (MTUC) agrees that there should be an increase in the contribution rate for Socso, however, it should only be on the part of the employers.

MTUC president Datuk Abdul Halim Mansor said in developed countries, including Singapore and Australia, all workers’ social protection contributions were the responsibility of employers and paid in full by them.

“In Malaysia, employees have to contribute 0.05 per cent of their salary, while companies pay a 1.25 per cent share. So if there is a proposal to increase (the rate), the responsibility must be placed on the company or employers to contribute more for their workers,” he said when contacted by Bernama.

Yesterday, Human Resource Minister Datuk Seri M. Saravanan said the ministry was studying the need to raise Social Security Organisation (Socso) contributions under the Employees’ Social Security Act 1969 (Act 4) without burdening the people.

Meanwhile, Abdul Halim also suggested for a special social fund to be created under Socso to protect workers who were still working but involved in disasters or pandemics leading to a loss in salary.

He said this was because the current Employment Insurance System (EIS) only helped those who were either laid off or terminated from service.

However, he said any proposals on the matter required legal amendments by the Ministry of Human Resources following discussions with the stakeholders.

“The contribution is something that is contained in the Employees Social Security Act 1969, so the proposal must be brought to the National Labour Advisory Council before the amendment is drafted,” he said.

He said apart from Socso, all other social protection contributions should also be reviewed to have an effective system to protect workers in the event of a disaster that affected the country’s economy. — Bernama

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