These days, more and more Malaysians are opting to leave full-time employment to work as self-employed/gig workers or independent contractors.
The Social Security Organisation (Socso) was formed to administer, implement and enforce the Employees’ Social Security Act 1969 and Employees’ Social Security (General) Regulations 1971 through the concept of joint responsibility via pooling of resources among members.
With the rise of the gig economy, Socso has introduced the Self-Employment Social Security Scheme (SKSPS) to offer benefits and protection to self-employed workers who regularly contribute to the scheme.
Socso also offers the Housewives Social Security Scheme (SKSSR), established under the Housewives’ Social Security Act 2022, as a protection scheme for homemakers. Check back in tomorrow for more information on SKSSR.
What is the Self-Employment Social Security Scheme?
SKSPS extends a safety net to workers, ensuring they are provided with financial aid in the event of self-employment injuries. This refers to any personal injury sustained by a self-employed insured individual owing to an accident or occupational disease, during and related to their self-employment activities, including travel.
Benefits provided by the scheme are:
Medical benefit
Self-employed individuals who suffer an injury or occupational disease are eligible for free medical treatment at Socso’s panel clinics or government hospitals. Alternatively, they can claim reimbursement for medical expenses incurred at non-panel clinics. To do so, they must apply to Socso.
Reimbursement will be subject to conditions set by Socso or in accordance with the Fees Act 1951.
Temporary disablement benefit
This is provided for the period during which a self-employed insured individual is on medical leave, as certified by a doctor, for less than four days, including the day of the accident.
A medical certificate is required to qualify. The benefit ranges from a minimum of RM30 a day to a max of RM105.33 a day.
Permanent disablement allowance
Self-employed insured individuals who suffer from permanent disablement owing to a self-employment injury can apply for this benefit, which is calculated at 90% of the insured’s average monthly earnings.
Constant attendance allowance
This is provided to self-employed insured individuals who suffer from total permanent disablement owing to a self-employment injury, and are so severely incapacitated that they constantly require personal assistance.
This condition must be certified by a medical assessor or the appellate medical board. The allowance is set at RM500 a month.
Dependents benefit
If a self-employed insured individual dies as a result of a self-employment injury, their dependents are entitled to 90% of the insured’s average monthly earnings.
Eligible dependents include the insured’s widow/widower or children under 21 years old – in the absence of which, parents, siblings below age 21, or grandparents can also qualify.
Widows, widowers, parents and grandparents receive lifetime benefits. Children are eligible to receive benefits until they turn 21 or get married, whichever comes first.
If the child is pursuing higher education, they will receive the benefit until they complete their first degree or get married, whichever occurs first.
Facilities for physical or vocational rehabilitation
Free physical and vocational rehab services are available, including physiotherapy, occupational therapy, reconstructive surgery, and the provision of orthotics, prosthetics, and aids like wheelchairs, crutches, hearing aids, spectacles, and specialised footwear.
Vocational rehabilitation offerings include courses in sewing, radio repair, and more.
Funeral benefit
This is disbursed to eligible individuals in the event of the demise of a self-employed insured person owing to a self-employment injury or while receiving periodic permanent disablement benefit payments.
The benefit amount will either be the incurred actual funeral cost or RM 2,000, whichever is lower.
Education benefit
This consists of loans that may be granted to the dependent child or children of a self-employed insured person who dies owing to self-employment injury or while receiving periodic permanent disablement benefit payments.
How to contribute
Contributions can be made monthly or yearly, either in cash at any Socso office nationwide, or online through the Matrix portal, the Socso Prihatin app, or any authorised Socso agent.
You need only provide a copy of your IC and driver’s licence, driver card, e-hailing profile/permit/certificate, or confirmation letter from the relevant agency or association of the industry affiliated with your line of work.
This article was written by Fateen Rosli for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.
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