SOCSO’s wage ceiling raised from RM5,000 to RM6,000
SOCSO raises salary ceiling to RM6,000, expanding benefits for higher-earning employees
Social Security Organisation (SOCSO) has increased the salary ceiling for contributors from RM5,000 to RM6,000 per month. This adjustment allows employees earning more than RM5,000 to benefit from a 20.2% increase in the benefit payment rate.
This change is part of recent amendments to the Employees’ Social Security Act 1969 and the Employment Insurance System Act 2017, aimed at enhancing employee protection. The revisions under the Employees’ Social Security Act bring increased cash benefits for recipients of several schemes, including:
- Temporary Disablement Benefit
- Permanent Disablement Benefit
- Dependants’ Benefit
- Invalidity Pension
- Survivors’ Pension
Additionally, under the Employment Insurance System Act, employees can now access higher employment search allowances, reduced income allowances, and early re-employment incentives.
These changes are designed to better support the financial well-being of employees, particularly those in higher income brackets, and provide more substantial aid during periods of employment uncertainty or disability.