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Just a month after the government's new round-the-clock social security scheme came into effect, the Cabinet has reversed its position on one of its key features
Contributions to the Non-Employment Injury Scheme, better known as Lindung 24 Hours, will no longer be mandatory for employees.
Instead, participation will be voluntary with immediate effect.
Government spokesperson and Communications Minister Datuk Fahmi Fadzil announced the decision after the weekly Cabinet meeting on 8 July, saying it followed Prime Minister Datuk Seri Anwar Ibrahim's review of public feedback on the matter.
"Therefore, the Cabinet [has] decided that the contributions will no longer be mandatory, but voluntary, with immediate effect," Fahmi said, adding that the Human Resources Ministry will issue a further statement.
Prime Minister Datuk Seri Anwar Ibrahim.
Image via Fahmi FadzilThe move comes after many Malaysians questioned why employees should be required to pay for the additional coverage
The mandatory contributions had sparked discussion on social media, with some arguing that the scheme should not be compulsory.
Others pointed out that they already have their own personal accident or medical insurance, making an additional mandatory deduction unnecessary in their view.
Under the original plan, the cost of the scheme would have been borne entirely by employees through phased salary contributions.
Workers were initially set to contribute 0.75% of their monthly salary during the first two years, with the rate increasing to 1% over the following three years, then to 1.35% from the sixth year onwards.
The scheme itself remains aimed at providing social security protection for accidents that happen outside working hours, including incidents at home, during leisure activities, or while on personal journeys.
Earlier this week, the Social Security Organisation (PERKESO) had described Lindung 24 Hours as a more comprehensive social safety net for workers
According to PERKESO, more than RM1.2 million in benefits had already been paid out to 592 approved claims within the scheme's first month of implementation.
It also said it has been recording an average of nearly 20 cases a day involving accidents outside working hours.
The Human Resources Ministry is expected to provide further details on how the voluntary contribution mechanism will be implemented following the Cabinet's decision.
