Your PERKESO Deduction Will Increase Starting This Month. Here’s Why

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With payday approaching, you may notice that your Social Security Organisation (PERKESO) contribution has increased slightly this month.

Here's what you need to know.

Starting this month, PERKESO is implementing the new Lindung 24 Jam scheme, also known as the Non-Employment Injury Security Scheme (SKBBK).

The initiative provides round-the-clock protection for eligible employees throughout their employment period, including coverage for accidents that occur outside working hours and are not directly related to their duties.

For example, employees who suffer injuries from a fall on a non-working day may be eligible to make a claim. The same applies to injuries sustained in road accidents outside of work.

Subject to eligibility, PERKESO will provide the following benefits under the new coverage:
• The cost of medical treatment
• Temporary disablement benefits
• Permanent disablement benefits
• Dependants' benefits
• Constant attendance allowance
• Funeral benefits, physical
• Vocational rehabilitation
• Return To Work (RTW) programme support
• Education benefits

What now? Will employees pay more for the additional coverage?

Yes, and your employers will not be contributing to this scheme.

Employers already contribute 1.25% towards the Employment Injury Scheme, which protects employees against work-related accidents, including commuting accidents, The Star quoted PERKESO as saying.

The cost of the new scheme will be borne entirely by employees.

Employers must deduct the required SKBBK contributions from employees' wages and remit them to PERKESO each month.

If you are an employer, PERKESO said that no penalties will be imposed during the first six months of the rollout for non-compliance. Employees, meanwhile, are encouraged to check their payslips to ensure the correct PERKESO deductions have been made.

Self-employed individuals are not covered under the scheme, as they are required to register and contribute under the Self-Employment Social Security Scheme (Act 789).

Before this rollout, a standard employee's PERKESO contribution was 0.5% of their salary

But starting in June this year, the contribution has increased to 0.75%.

The rate will remain at 0.75% for the first two years before being raised in stages over the following years.

Below are the contribution rates that will be implemented in phases:
• 0.75% for the first two years (Phase 1, the current phase)
• 1.0% for the next three years (Phase 2)
• 1.25% from the sixth year onwards (Phase 3)

Employees earning above RM6,000 a month will not be required to contribute more than RM44.65 monthly under this scheme, as the contribution rate is capped at that salary range.

The table below contains the updated contribution rates, including the SKBBK, based on information published by PERKESO. Enter your monthly salary to find out your contribution amount under the current phase: