Social security coverage extended to domestic workers from June, according to Saravanan

KUALA LUMPUR: Social security coverage has been extended to benefit 100,000 domestic and foreign domestic workers, says Datuk Seri M. Saravanan.

The Minister of Human Resources said the Cabinet recently approved the proposal to extend social security coverage to domestic workers under the 1969 Employees’ Social Security Act (Act 4) and the Act of 2017 on the employment insurance system.

“The government hopes to enforce this expansion through these regulations which are expected to be implemented on June 1,” he said at a press conference ahead of the start of the Socso Majlis Iftar 2021 event, Tuesday April 20.

With the extension, Saravanan said Malaysian domestic workers or permanent residents who contribute to the Social Security Organization (Socso) will be protected under the Workers Compensation Scheme and the Disability Scheme under the law. 4, as well as the employment insurance system under Bill 800..

For foreign domestic workers, he said they will be protected under Law 4 of the Workers Compensation Scheme.

Saravanan said these domestic workers will include those in the informal sectors such as drivers, gardeners, babysitters and others.

He noted that the rate of payment of contributions by the employer and the employee will follow the current rate of contribution under Law 4 and Law 800.

“A total of 104,400 domestic workers including 15,000 Malaysians and permanent residents as well as 89,400 foreigners are expected to benefit,” he said.

Saravanan said the coverage will protect domestic workers who were previously ineligible under Law 4 and Law 800.

Separately, Saravanan said that Socso’s interest payments showed an upward trend each year which was in line with the expansion of the social safety net and improved benefits.

“Last year Socso paid interest of 4.25 billion RM against 4.2 billion RM in 2019 and 3.8 billion RM in 2018. This total is an increase from 3.6 billion RM. RM in 2017 and RM 3.3 billion in 2016, ”he said.

Along with the Socso Majlis Iftar 2021 event, Saravanan also paid interest of around RM600,000 to 13 beneficiaries.

The event was also attended by, among others, the Managing Director of Socso, Datuk Seri, Dr Mohammed Azman Aziz Mohammed.


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