ADM653 TUTORIAL WEEK 9

GROUP 6 :
1) SITI KHADIJAH BINTI OMAR SAEFUDDIN ABDUL AZIZ (2023396099)
2) NURUL HAFIZAH ERRY BINTI BASRI (2023396081)
3) DANIEL AUGUSTINE RICHARD (2023305373)
4) AHMAD ZAKI BIN AMINUDDIN (2022379193)
5) MUHAMMAD AFIQ BIN SAPRIN (2023305979)
6) NURUL IZZAH ZAYYANI BINTI MOHD ADRIMIE JOUMI (2020827926)

QUESTION 1:
Explain what are functions of EPF for employees in Malaysia (250 words)

The Employees Provident Fund (EPF) in Malaysia is a government-managed retirement

savings scheme that provides financial security for employees upon retirement. The EPF
manages these funds by investing in various asset classes to ensure growth and generate
returns.

The function of EPF would be to ensure employees have their retirement savings when
they reach retirement age. This system requires both employees and employers to contribute a
certain percentage of their monthly wage to the fund. Over time, the funds will accumulate and
be invested, earning interest and dividends to help the savings grow. As a result, when workers
retire, these funds provide them with a steady income to pay living expenses and other
necessities, allowing them to live comfortably without relying only on personal savings or
government aid.

Next function of EPF for employees in Malaysia is in the aspect of health, through its
Medical Withdrawal Scheme, which allows members to withdraw savings for medical expenses
such as serious illnesses and significant procedures. This policy enables employees to manage
high healthcare expenditures without incurring significant financial hardship, offering a critical
financial safety net during medical emergencies. By providing this assistance, the EPF
guarantees that employees can afford necessary treatments and maintain their health.

Moreover, EPF offers an Educational Withdrawals Scheme which allows members to

withdraw their savings to finance their own or their children’s education both in local or overseas
institutions and covers expenses such as tuition fees, accommodation etc. Hence, financial
burden regarding higher education can be alleviated, making education more accessible for
everyone.
(255 words)
QUESTION 2:
Explain what is the function of SOCSO in social security in Malaysia? (250 words)

Malaysia's Social Security Organization (SOCSO), also known as Pertubuhan

Keselamatan Sosial (PERKESO), is a government agency that acts as a safety net for
employees in the country. There are several points on how it functions in Malaysia’s Social
Security.

The SOCSO provides social security schemes where it offers social security schemes
with the two main schemes, employment injury schemes where it protects employees in case of
accident or occupational disease that happens while they are on the job and the invalidity
schemes where it provides a coverage in case of permanent disability or death due to any
causes.

The collection of contributions is another function. Both employers and employees

contribute a percentage of the employees' wages to SOCSO. In this scheme, employers bear
the larger share, while employees contribute a smaller percentage, which is deducted from their
wages. These contributions are vital as they fund the benefits that are provided by SOCSO. For
example, the KWSP, where it is designed to ensure that workers have financial security.

SOCSO’s role can be extended to enhancing occupational safety and health (OSH)
awareness. Through various training and educational programs, SOCSO has promoted safe
work practices. These programs aim to reduce the incidence of workplace injuries and illnesses
by fostering a culture of safety. Moreover, SOCSO engages in measures and research to
identify workplace hazards.

To conclude, SOCSO's functions are fundamental to ensuring social security for

Malaysian workers. Its efforts in enhancing occupational safety and health further underscore its
commitment to the well-being of workers.
(251 words)