Socso said this will provide benefits to employees earning more than RM5,000, with a 20.2% increase in the benefit payment rate.

The ceiling change follows amendments to the Employees’ Social Security Act 1969 and the Employment Insurance System Act 2017, it said in a statement.

Socso said the amendments to the Employees’ Social Security Act also mean an increase in cash benefits for recipients of the temporary disablement benefit, permanent disablement benefit, dependants’ benefit, invalidity pension, and survivors’ pension.

Meanwhile, the amendments to the Employment Insurance System Act involve an increase in employment search allowance, reduced income allowance, and early re-employment allowance.

In February, human resources minister Steven Sim revealed that the government intended to raise the salary ceiling to enhance Socso protection for more workers by proposing amendments to the Acts.

He said 1.45 million workers earn salaries exceeding RM5,000, while about 8.38 million workers earn salaries below RM5,000.

In June, the Dewan Rakyat unanimously approved the amendments to the two Acts.