PROFESSIONAL CERTIFICATED HUMAN RESOURCE MANAGEMENT PROGRAMME

ASSIGNMENT

Student Index No: KONG KIM YING

Programme: DHRM

Module: SOCSO PROTECTION SCHEMES

Course Leader: GEH THUAN HOOI

Date of Submission: 10/11/2015

Assignment Question:

List and elaborate the SOCSO benefits.

Assignment Marks (100 Marks): ________%

Course Leader’s Signature: ____________

Date: _____________
 CONTENTS
SOCIAL SECURITY SCHEMES 1

Employment Injury Scheme 1

Medical Benefit 2
Temporary Disablement Benefit 2
Permanent Disablement Benefit 3
Constant-attendance Allowance 4
Facilities for Physical or Vocational Rehabilitation 4
Dependants’ Benefit 5
Funeral Benefit 5
Education Benefit 5

Invalidity Scheme 6
Invalidity Pension 6
Invalidity Grant 7
Constant-attendance Allowance 7
Facilities for Physical or Vocational Rehabilitation
and Dialysis 7-8
Survivors’ Pension 8
Funeral Benefit 9
Education Benefit 9
SOCIAL SECURITY SCHEME
Social Security Organization (SOCSO) provides TWO social security protection schemes
namely the Employment Injury Scheme and Invalidity Scheme.

EMPLOYMENT INJURY SCHEME

Under Employment Injury Scheme, protection is provided to an employee against
accident or an occupational disease arising out of his employment. The protection
covers FOUR accidents.
First type of accident is industrial accidents while carrying out their duties.

Second type of accident is an accident while travelling on a route between employee’s

place of residence and his workplace, or on a journey made for any reason which is
directly connected to employee’s employment, or on a journey between employee’s
workplace and the place where he takes meal during any authorized recess.

Third type of accident is an accident during emergency which refers to an accident

happening to an employee while he is in or near any premises at which he is being
employed and it occurs while assisting, rescuing or protecting other people form
disaster or danger during an emergency.

Fourth type of accident is occupational disease which is meaning the diseases resulted
from employee’s occupation as described on the Fifth Schedule of Employees’ Social
Security Act 1969. Amongst the occupational diseases include loss of hearing due to
continuous excessive noise exposure and occupational asthma due to work involving
constant exposure to the inhalation of dust or harmful chemical and etc.

There are eight benefits under this schemes which is Medical Benefit, Temporary
Disablement Benefit, Permanent Disablement Benefit, Constant-attendance Allowance,
Facilities for Physical or Vocational Rehabilitation, Dependant’s Benefit, Funeral Benefit
and Education Benefit.

1|Page
MEDICAL BENEFIT
First benefit is Medical Benefit. The employees who suffer from employment injuries or
occupational diseases may receive free medical treatment at SOCSO’s panel clinic or
Government clinic or hospital. Treatment must be continued until they are fully
recovered. And for serious injuries, medical care may be obtained from the Government
hospital and the employee is eligible for second class ward treatment. Specialist
treatment will be provided if required.

TEMPORARY DISABLEMENT BENEFIT

Second benefit is Temporary Disablement Benefit. This benefit is paid for the period the
employee is on medical leave certified by a doctor for not less than four (4) days
including the day of accident. However, Temporary Disablement Benefit will not be paid
for the days for which the employee works and earns wages during this period. The daily
rate of this benefit is 80% of the employee’s average assumed daily wages and the
minimum rate is RM30.00 per day while the maximum rate is RM78.67 per day.

Employee who want to claim for this benefit shall inform his employer to submit the
claim form and other relevant documents to SOCSO within 48 hours upon notification if
the accident.

2|Page
PERMANENT DISABLEMENT BENEFIT
Permanent Disablement is defined as a permanent disability due to employment injury
that reduces employee’s ability to perform his duties. The employee can claim this
benefit after the last day of temporary disablement.

The daily rate of Permanent Disablement Benefit is 90% of the employee’s average
assumed daily wages, subject to a minimum of RM30.00 per day or maximum if
RM88.50 per day. The claim must be made within 12 months from the last date of the
temporary disablement.

Claims that made will be referred to the Medical Board for permanent disability
assessment. If the assessment does not exceed 20%, payment can be made in the form
of lump sum. If the assessment exceeds 20%, the employee is given an option to
commute 1/5 of daily rate of the benefit into lump sum payment while the balance will
be paid monthly for life.

If the employee or SOCSO is not satisfied with the assessment of the Medical Board, an
appeal can be made to the Appellate Medical Board within 90 days from the date of the
Medical Board’s decision was relayed to the employee.

3|Page
CONSTANT-ATTENDANCE ALLOWANCE
This allowance is paid to an employee who is suffering from permanent total
disablement and is so severely incapacitated as to constantly require the personal
attendance of another person, certified by Medical Board or Special Medical Board or
the Appellate Medical Board. The allowance is equivalent to 40% of the rate of such
benefit subject to maximum of RM500 per month.

FACILITIES FOR PHYSICAL OR VOCATIONAL

REHABILITATION
These facilities may be provided free of charge by Organization to an employee who
suffers from permanent disablement. Amongst the facilities provided are physical
rehabilitation and vocational rehabilitation.

Physical rehabilitation includes physiotherapy, occupational therapy, and reconstructive

surgery, supply of prosthetics or orthotics and supply of orthopedics apparatus such as
wheelchair, crutches, hearing aid, spectacles, calipers, special shoes and others.
Vocational rehabilitation includes training in courses such as electrical, sewing, radio/TV
repair, typing, secretarial and others.

All expenses incurred for the above rehabilitation facilities will be borne by SOCSO
based on stipulated rates, terms and conditions.

4|Page
DEPENDANTS’s BENEFIT
If an employee dies as a result of an employment injury, his dependants are entitled to
dependant’s benefit.

Daily rate of this benefit is 90% of the average assumed daily wage subjected to a
minimum of RM30.00 per day and a maximum of RM88.50 per day. The daily rate for
different dependants is based on specific priorities whereby the widow may get the
share of daily rate 3/5 and child will get 2/5.

If an employee dies and does not leave any widow or widower or children, the
dependant’s benefit will be paid to his parents (4/10), brothers or sisters (3/10) and
grandparents (4/10) if no parent is alive.

FUNERAL BENEFIT
Funeral Benefit will be paid to the eligible person as prescribed in the Act, if the
employee dies as a result of employment injury or while h/she is in receipt of
disablement benefit. In the absence of such person, the benefit will be paid to the
person who actually incurs the expenditure.

The amount paid will be the actual amount incurred or RM1500 whichever is lower.

EDUCATION BENEFIT
This benefit is in the form of loans or scholarship may be provided to a dependent child
of an insured person who dies as a result of employment injury and is in the receipt of
periodical payments of permanent disablement benefit. However, the application is
subjected to terms and conditions specified by SOCSO.

5|Page
INVALIDITY SCHEME
An insured person shall be considered as suffering from invalidity by reason of specific
morbid condition of permanent nature either incurable or is not likely to be cured and
no longer capable of earning, by work corresponding to his strength and physical ability,
at least one-third (1/3) of the customary earning of a sound insured person.

The scheme provides 24-hour coverage to employee who suffers from invalidity or
death due to any cause and not related to his employment.

There are seven benefits under this scheme which is Invalidity Pension, Invalidity Grant,
Constant-attendance allowance, Survivor’s Pension, Funeral Benefit, Facilities for
Physical or Vocational Rehabilitation and Dialysis and Education Benefit.

INVALIDITY PENSION
This Invalidity Pension is payable to the eligible insured persons who have been certified
invalid by the Medical Board or Appellate Medical Board. It is payable from the date
invalidity notice is received or form the employee’s resignation date if he/she resigns
after the notice of invalidity is received by Organization. Besides that, this pension is
payable as long as the employee is invalid or until death. It shall be replaced by
Survivor’s Pension of the Invalidity Pension recipient dies, regardless of his age.

The rate of invalidity pension for full qualifying period is from 50% to 65% of the average
of assumed monthly wage subject to a minimum pension of RM475 per month.

The insured persons are entitled to receive a pension at the rate of 50% of the average
assumed monthly wage, increased by 1% for every 12 months’ contributions that paid in
excess of the first 24 months. The rate of monthly pension shall not in any case exceed
65%.

6|Page
INVALIDITY GRANT
Invalidity Grant is payable to the eligible insured persons who have been certified invalid
by the Medical Board or Appellate Medical Board but no eligible for invalidity pension
due to failure to complete any qualifying conditions.

The amount for Invalidity Grant is equivalent to the contributions paid in respect of him
together with interest at the rate specified in the regulations. The insured person is
eligible for this grant is he has paid 12 monthly contributions.

CONSTANT-ATTENDANCE ALLOWANCE
This allowance is paid to an employee who is suffering from permanent total
disablement and is so severely incapacitated as to constantly require the personal
attendance of another person, certified by Medical Board or Special Medical Board or
the Appellate Medical Board. The allowance is equivalent to 40% of the rate of such
benefit subject to maximum of RM500 per month.

FACILITIES FOR PHYSICAL OR VOCATIONAL

REHABILITATION AND DIALYSIS
These facilities may be provided free of charge by Organization to an employee who
suffers from permanent disablement. Amongst the facilities provided are physical
rehabilitation, vocational rehabilitation and dialysis.

Physical rehabilitation includes physiotherapy, occupational therapy, and reconstructive

surgery, supply of prosthetics or orthotics and supply of orthopedics apparatus such as
wheelchair, crutches, hearing aid, spectacles, calipers, special shoes and others.

7|Page
Vocational rehabilitation includes training in courses such as electrical, sewing, radio/TV
repair, typing, secretarial and others.

Dialysis facilities for insured persons suffering from chronic renal failure includes
Haemodialysis treatment at SOCSO’s panel and non-panel dialysis centre or Government
Hospitals, continuous Ambulatory Peritoneal Dialysis (CAPD), subsidy for Erythropoietin
(EPO) injection, subsidy for Immunosuppressant medicine, and payment for Anterior
Venous Fistulae (AV Fistula) surgery.

All expenses incurred for the above rehabilitation facilities will be borne by SOCSO
based on stipulated rates, terms and conditions.

SURVIVORS’ PENSION
Survivors’ Pension is payable to the eligible dependants of an insured person who dies
irrespective of the cause of death not related to employment.

The rate of this pension for full qualifying period is from 50% to 65% of the average
assumed monthly wage subject to a minimum pension of RM475 per month.

The insured persons are entitled to receive a pension at the rate of 50% of the average
assumed monthly wage, increased by 1% for every 12 months’ contributions that paid in
excess of the first 24 months. The rate of monthly pension shall not in any case exceed
65%.

If the deceased was a recipient of Invalidity Pension, the full rate of Survivors’ Pension is
equivalent to the rate of Invalidity Pension received by the deceased.

8|Page
FUNERAL BENEFIT
Funeral Benefit will be paid to the eligible person as prescribed in the Act, if the
employee dies as a result of employment injury or while h/she is in receipt of
disablement benefit. In the absence of such person, the benefit will be paid to the
person who actually incurs the expenditure.

The amount paid will be the actual amount incurred or RM1500 whichever is lower.

EDUCATION BENEFIT
This benefit is in the form of loans or scholarship may be provided to a dependent child
of an insured person who dies whilst in receipt of Invalidity Pension, dies before
attaining the age of 60 years but has completed a full or a reduced qualifying period and
is in the receipt of Invalidity Pension. However, the application is subjected to terms and
conditions specified by SOCSO.

9|Page