Housewives not employees as they don’t work for wages, says Socso

Housewives not employees as they don’t work for wages, says Socso

Socso says housewives are not considered ‘employees’ as they do not carry out work for a fee.

Socso said if the ‘presumed work value’ for housewives is revised to match the RM1,500 minimum wage, then the contribution rate would go up to RM418.80 a year, or RM34.90 per month. (Bernama pic)
PETALING JAYA:
Housewives do not carry out work for wages and cannot be compared with paid employees, says the Social Security Organisation (Socso).

It said it was wrong to compare the RM600 “presumed work value” of housewives under the Housewives’ Social Security Bill 2022 (SKSSR) with the RM1,500 minimum wage for workers.

“If the ‘presumed work value’ is revised to match the RM1,500 minimum wage, then the contribution rate would increase to RM418.80 a year or RM34.90 per month,” said Socso’s chief communications and corporate affairs officer Izad Raya, in a statement issued today.

He said the increase from the proposed RM10 per month would burden those from the groups with low income or no income at all.

Izad also said the RM600 figure was used to calculate a contribution rate, based on actuarial studies conducted as well as the Employees’ Social Security Act.

In arriving at the figure, Socso also considered the RM10 monthly contribution by the government under the i-Suri programme of the Employees Provident Fund (EPF).

Perkeso was responding to an FMT report earlier in which several women’s rights groups criticised the government’s RM600 “presumed work value” of a housewife, saying it did not reflect the amount of work she does.

On Monday, the bill came under fire while being debated in the Dewan Rakyat due to a clause that mentions RM600 as the “presumed work value” of a housewife.

MP Hannah Yeoh (PH-Segambut) claimed that the figure is “insulting”, saying that the new minimum wage is RM1,500 and even foreigners who work in coffee shops earn up to RM3,000 a month.

Yeoh, who is a former deputy women, family and community development minister, also said if RM600 was seen as the presumed monthly income rate, then a housewife would only be earning RM20 per day.

She called for the passing of the bill to be postponed until the wordings can be amended.

In reply, deputy human resources minister Awang Hashim said his ministry would revisit the term as it reviews the bill from time to time.

Under the SKSSR Bill, housewives who contribute to the scheme are entitled to medical benefits, permanent disability benefits, regular attendance allowance, survivor’s pension and funeral benefits.

The bill, among others, proposes that the maximum amount paid out for permanent disability be RM30,000.

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