SOCSO Changes Coming in June 2026: What Malaysian Employers Should Prepare For

Resource from : (www.perkeso.gov.my )
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Introduction

Businesses in Malaysia should start paying close attention to upcoming changes to SOCSO obligations.

The Employees’ Social Security (Amendment) Act 2026, officially gazetted on 5 March 2026, marks one of the largest expansions of SOCSO protection in recent years.

The most notable update is this: employees will soon receive accident protection on a 24-hour basis, regardless of whether the incident happens during working hours or personal time.

Below is a breakdown of the upcoming changes and what employers should expect before implementation begins.

What’s New Under the Amendment?

Introduction of LINDUNG 24/7 (Skim Kemalangan Bukan Bencana Kerja)

Previously, SOCSO protection mainly applied to accidents connected to employment such as workplace injuries, commuting accidents, and occupational illnesses. Injuries sustained during personal activities outside work generally did not qualify for compensation.

That restriction is now being removed.

Through the new LINDUNG 24/7 initiative, employees will also be covered for accidental injuries occurring outside working hours, referred to under the law as “non-employment injuries.”

Between 2023 and October 2025, SOCSO reportedly declined over 12,000 claims because the incidents were unrelated to work. Under the revised framework, many of these cases would likely qualify for benefits.

As the scheme name suggests, employees are intended to receive continuous protection around the clock.

Benefits Available Under LINDUNG 24/7

Employees covered under the scheme may access benefits similar to existing SOCSO protections, including:

• Medical treatment at SOCSO-approved clinics and hospitals
• Temporary disability payments while recovering and unable to work
• Permanent disability compensation for lasting incapacity
• Dependants’ benefits for surviving spouses and children following death
• Constant attendance allowance for employees needing full-time care
• Funeral assistance payments
• Physical and vocational rehabilitation programmes
• Education financing support for dependants of deceased or disabled contributors

Situations Excluded From Coverage

Despite the expanded protection, certain cases remain outside the scheme’s scope:

• Accidents that occur outside Malaysia
• Fraudulent or false claims under Section 93 of the SOCSO Act
• Cases involving foreign workers who violate immigration or permit conditions
• Illnesses or diseases, as the scheme only applies to accidental injuries

Expected Changes to Contributions

The amendment will also affect payroll contributions.

Under the previous Second Category SOCSO structure, employers bore the full contribution cost. Moving forward, employees will also be required to contribute toward non-employment injury protection.

Implementation is expected to take place gradually in three phases.

At present, the revised contribution rates have not yet been officially announced through gazette notification. However, there are industry expectations that contribution amounts may increase. PERKESO has indicated that the rollout may begin sometime in early or mid-2026.

Employers should monitor the official PERKESO portal (www.perkeso.gov.my) for updated contribution schedules once released.

Payroll Reminder

Employees holding multiple jobs may nominate one employer to manage the non-employment injury contribution payments. While that employer will submit the payment, the contribution responsibility still belongs to the employee.

Who Will Benefit?

The Ministry of Human Resources estimates that over 9.6 million active contributors in Malaysia’s formal workforce will benefit from the expanded protection.

The initiative is particularly important because a large portion of Malaysian workers currently do not hold personal accident insurance or takaful coverage. For many employees, LINDUNG 24/7 may become their primary form of accident protection outside the workplace.

What Employers Should Start Doing

1. Prepare Payroll Systems

Businesses should ensure payroll software and contribution calculations are updated once the official rates are published. Companies handling payroll manually should brief payroll personnel ahead of implementation.

2. Inform Employees Early

Employees should understand both the expanded SOCSO protection and the possibility of higher contribution deductions. Early communication can help avoid confusion later.

3. Monitor Official PERKESO Announcements

The confirmed implementation dates and contribution rates will only take effect after formal gazette notification. Employers are encouraged to follow PERKESO updates or consult payroll and tax professionals regularly.

4. Pay Attention to Foreign Worker Compliance

Employers with foreign employees should ensure immigration documentation and permit conditions remain valid, as breaches may affect eligibility for non-employment injury coverage.

5. Clarify Contribution Responsibility for Multi-Job Workers

For employees working with multiple employers, businesses should determine in advance which employer will handle the contribution remittance for the new scheme.