Malaysia Social Security Coverage Extended to Foreign Workers
This report covers Malaysia’s requirement that foreign workers be registered with the social security system and contribute to the employment injury scheme. SUBSCRIBE To subscribe to GMS Flash Alert, fill out the subscription form. Effective 1 January 2019, employers in Malaysia that hire foreign workers (excluding domestic servants), including expatriates, with valid documents, must register their employees with SOCSO (the country’s Social Security organisation) and contribute to the Employment Injury Scheme. Under the Employment Injury Scheme, foreign workers, including expatriates, are eligible for medical benefits, temporary/permanent disablement benefits, constant-attendance allowance, dependent’s benefits, and rehabilitation. However, benefits from the Invalidity Scheme do not extend to foreign workers, including expatriates. WHY THIS MATTERS Prior to 2019, SOCSO was not mandatory for expatriates. With implementation of the new rules...