All You Need to Know About Self-Employment Social Security Scheme

The Social Security Organisation (SOCSO) introduced the Self-Employment Social Security Scheme (SKSPS) to protect self-employed individuals under the Self-Employment Social Security Act 2017.

In the beginning, this scheme was compulsory for the self-employed in the Passenger Transportation Sector: taxi, e-hailing and bus drivers.

Starting 1 January 2020, SOCSO extended the scheme to 19 other sectors, including

Agriculture
Goods and Food Transport
Forestry
Livestock
Food
Fisheries
Construction
Manufacturing
Hawkers
Accommodation of Premises
Online Business
Information Technology
Data Processing
Agents
Professional Services
Support Services
Arts
Household Services
Beauty and Healthcare

The coverage for self-employed individuals contributing to the SKSPS scheme will begin from the date & time of the contribution's payment and be recognised on the contribution payment receipt.

SKSPS' protection for self-employed persons

This scheme protects self-employed insured persons against employment injuries, including occupational diseases and accidents during work-related activities.

Self-employment injury means personal injury to a self-employed insured person caused by an accident or an occupational disease that happened out of and in the course of their self-employment activity, including while travelling for their self-employment activity.

An occupational disease is caused by or happened from any occupation specified in the Fifth Schedule of the Employees' Social Security Act 1969. The SKSPS scheme provides cash benefits to the insured persons and their dependants.

A self-employed person's dashboard page on SOCSO's MATRIX System.

Eligibility requirements

Malaysian citizen or permanent resident without age limit;
Persons who work for themselves to earn a living.

Required documents

A photocopy of identity card (IC);
A copy of driving licence/e-hailing profile/permit/certificate/letter of confirmation from the relevant association or agency subject to the sector type.

Contribution payment

Members can make contribution payments on a monthly or yearly basis;
They can also make payments via cash at all SOCSO offices;
The online payment method via internet banking can be made at https://matrix.perkeso.gov.my/.

Contribution Schedule

Benefits under the SKSPS

1. Medical benefits

Self-employed insured individuals suffering from self-employment injury or occupational diseases will receive free medical treatment at SOCSO's panel clinics/government hospitals.

Alternatively, they can also claim reimbursement of expenses incurred in getting medical treatment at SOCSO's non-panel clinics. Members can apply for this benefit via SOCSO, and the reimbursement is subject to the conditions determined by SOCSO or according to Fees Act 1951.

2. Temporary Disablement Benefit

This benefit is paid for the period the self-employed insured person is on medical leave certified by a doctor for not fewer than (4) days, including the day of the accident.

The applicant must submit a medical certificate (MC).

The minimum rate is RM30.00 each day, while the maximum rate is RM105.33 each day.

3. Permanent Disablement Benefit

Self-employed insured persons who have a permanent disability due to self-employment injury can apply for this benefit.

The Permanent Disablement Benefit rate is 90% of the selected insured monthly earning.

An instance of calculation of Permanent Disablement Benefit (lump sum payment):

If the assessment is 20%, the age factor is 8873 (under 20 years old), and the contribution is RM592.80.

= (RM 3,950 × 90% ÷ 30 Days)× 20% × 8873 = RM 210,290.10

4. Constant Attendance Allowance

This allowance is paid to a self-employed insured person suffering from total permanent disablement due to self-employment injury. They are so severely incapacitated as to constantly require the personal attendance of another person, certified by a Medical Assessor/the Appellate Medical Board.

The allowance is fixed at RM500 each month.

5. Dependants' benefit

If a self-employed insured person dies due to self-employment injury, their dependant will be entitled to Dependants' Benefit.

They will receive 90% payment from selected insured monthly earnings.

Eligible dependants: Widow/widower and child below 21 years old. If there is no widow/widower/child:

a) Parents; or

b) Brothers or sisters under 21 years old; or

c) Grandparents

Widow/widower, parents, grandparents will receive lifetime benefits.

The child is eligible for the benefit up to age 21 or until marriage (whichever occurs earlier).

Suppose the child is studying in an institution of higher learning. In that case, they will receive the benefit until completing the first degree or getting married (whichever happens earlier).

Examples of Dependant's Benefit calculation for the wife and child are shown below:

6. The facilities for physical or vocational rehabilitation

This benefit is provided free of charge. Physical rehabilitation includes:

Physiotherapy,
Occupational therapy,
Reconstructive surgery,
Supply of prosthetics,
Orthotics and other appliances,
Supply of orthopaedics apparatus such as a wheelchair, crutches, hearing aids, spectacles, special shoes, etc.

Vocational rehabilitation such as courses in sewing, radio repair and others.

7. Funeral benefit

This benefit is paid to the eligible person if the self-employed insured person dies due to self-employment injury or while receiving Permanent Disablement Benefit.

The amount paid is the actual amount incurred, or RM2,000, whichever is lower.

8. Education benefit

The education benefit is in the form of loans that SOCSO may provide to a dependant child of a self-employed insured person who dies due to self-employment injury or is receiving periodical payments of Permanent Disablement Benefit.

If you would like to learn more about Socso's eligibility requirements and assistance schemes, you can refer to the website at www.perkeso.gov.my.

For enquiries, you can contact SOCSO customer service at 1-300-22-8000 or email perkeso@perkeso.gov.my.

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