SKSPS Malaysia: Employer Guide to Protect Gig and Freelance Worker

As more Malaysian businesses rely on freelancers and gig workers, understanding SKSPS has become increasingly important. The scheme, managed by PERKESO, protects self-employed individuals against workplace risks, similar to how SOCSO protects regular employees.

Here’s what employers and HR professionals should know about SKSPS, its benefits, and their role in encouraging coverage.

What is SKSPS?

The Skim Keselamatan Sosial Pekerjaan Sendiri (SKSPS) is a social security scheme administered by PERKESO under the Self-Employment Social Security Act 2017 (Act 789). It was introduced to protect self-employed individuals from workplace injuries, occupational diseases, permanent disability, or death resulting from work-related activities.

While regular employees are protected under SOCSO’s Employment Injury Scheme, self-employed individuals, such as delivery riders, e-hailing drivers, and freelancers, fall under SKSPS. The scheme ensures that these workers receive medical care, financial support, and rehabilitation assistance when unexpected accidents occur during work.

Who Needs SKSPS?

The Skim Keselamatan Sosial Pekerjaan Sendiri (SKSPS) is designed for individuals who earn an income on their own without a formal employer-employee relationship. It ensures that Malaysia’s self-employed and gig-economy workforce receive protection similar to SOCSO-covered employees.

This includes people working in the following 20 self-employment sectors identified by PERKESO:

Goods and food transport services: delivery riders, dispatchers, couriers, parcel and food delivery operators.
Passenger transport services: e-hailing, taxi, bus, van, and rental car drivers.
Agriculture: small-scale farmers, planters, and crop growers.
Livestock: cattle, poultry, goat, and other livestock breeders.
Fisheries: fishermen, aquaculture workers, seafood collectors.
Manufacturing: small-scale producers, home-based food or craft manufacturers.
Construction: independent contractors, renovation workers, small builders.
Mining and quarrying: small-scale miners or stone quarry operators.
Forestry: woodcutters, timber transporters, and forest product collectors.
Wholesale and retail trade: hawkers, petty traders, online sellers, food stall operators.
Accommodation and food services: homestay owners, small food vendors, caterers.
Information and communication: freelance photographers, content creators, and digital marketers.
Financial and insurance activities: freelance financial planners, insurance or takaful agents.
Real estate activities: property agents, brokers, and negotiators.
Professional, scientific, and technical activities: consultants, designers, translators, surveyors.
Administrative and support services: cleaning, security, or maintenance service providers.
Arts, entertainment, and recreation: performers, musicians, event organisers.
Personal services: barbers, beauticians, spa or massage therapists, tailors.
Education and training: private tutors, freelance trainers, driving instructors.
Health and social work activities: freelance caregivers, midwives, and traditional health practitioners.

Difference Between Employees and the Self-Employed

Category	Coverage	Administered by	Contribution Responsibility
Employees	Employment Injury & Invalidity Schemes	SOCSO (under Employment Act)	Employer & employee share contribution
Self-Employed / Gig Workers	Self-Employment Social Security Scheme (SKSPS)	PERKESO	Self-employed individual (or partly subsidised by government)

Why SKSPS is Important for Employers

In today’s flexible workforce, many companies rely on gig workers and independent contractors to perform key tasks. Even though these individuals are not technically employees, understanding SKSPS is crucial for several reasons:

Worker Safety and Wellbeing

Encouraging SKSPS registration ensures that delivery riders, agents, or freelancers engaged by your company are financially protected in case of accidents.

Legal and Ethical Responsibility

Although employers are not directly responsible for SKSPS contributions, promoting awareness shows a commitment to fair labour practices.

Business Continuity

Covered workers can recover faster with medical and income support, reducing disruption to business operations.

Positive Reputation

Supporting worker protection improves employer branding and builds trust with partners and customers.

Contribution & Payment

SKSPS operates on an annual contribution basis. Self-employed individuals pay a yearly fee that grants them 12 months of coverage from the date of registration.

Contribution Plans

There are five contribution categories, depending on the insured’s monthly income declaration:

Plan	Monthly Income (RM)	Yearly Contribution (RM)
Plan 1	1,050	157.20
Plan 2	1,550	232.80
Plan 3	2,950	443.40
Plan 4	3,950	590.40
Plan 5	4,950	738.60

Notes:

Each contribution provides 12 months of protection from the date of payment.
Self-employed individuals can choose the plan that best matches their income level.
Contribution may be fully or partially subsidised by the government for certain sectors (e.g., e-hailing, delivery riders).

Government Subsidy

Under various government initiatives, selected sectors (such as e-hailing and delivery riders) receive full or partial contribution subsidies to encourage participation. For example, the government may subsidise up to RM232.80 annually for each rider registered under SKSPS.

Payment Methods

Contributions can be paid through:

The PERKESO Matrix Portal or SEPS app.
Walk-in registration at any PERKESO office.
Authorised agents and appointed platforms (e.g., Grab, Foodpanda).

Benefits of SKSPS Coverage

Registered self-employed individuals under SKSPS enjoy comprehensive protection similar to SOCSO’s Employment Injury Scheme. Benefits include:

Medical benefits: Full medical treatment for injuries sustained during work-related activities.
Temporary disablement benefit: Income replacement if the insured is temporarily unable to work.
Permanent disablement benefit: Lifetime pension or lump-sum payment for total or partial permanent disability.
Dependents’ benefit: Monthly pension to the spouse, children, or dependents if the insured passes away due to a work-related incident.
Funeral benefit: Lump-sum payment to cover funeral expenses.
Education benefit: Financial aid for children of deceased contributors.
Rehabilitation facilities: Vocational training and physical rehabilitation to help workers return to employment.

Employer’s Role & Best Practices

Even though employers are not required to register contractors under SKSPS, they play an important role in promoting awareness and compliance. Here’s how employers can support it:

Encourage SKSPS Registration

Advise self-employed contractors, riders, or freelancers engaged by your company to register under SKSPS for their protection.

Clarify Worker Classification

Clearly differentiate between employees (SOCSO coverage) and self-employed contractors (SKSPS) in your HR or vendor documentation.

Integrate Safety Awareness

Include SKSPS information in your onboarding, contractor briefing, or vendor agreements, especially for sectors involving delivery or field work.

Promote Ethical Engagement

By ensuring all workers under your ecosystem have some form of social protection, your company demonstrates good governance and corporate responsibility.

FAQs

What is the difference between SOCSO and SKSPS?

SOCSO covers employees under a formal employer-employee relationship, while SKSPS covers self-employed individuals or gig workers without employers.

Are employers required by law to register their contractors under SKSPS?

No, employers are not legally required to register contractors. However, encouraging registration demonstrates social responsibility and protects your workforce ecosystem.

What happens if a self-employed worker is not registered under SKSPS?

They will not be eligible for medical or financial compensation if accidents occur during work. This leaves both the worker and the company exposed to operational risk.

How can a self-employed person register for SKSPS?

They can register via the PERKESO Matrix Portal, the SEPS mobile app, or any PERKESO office nationwide. Registration requires only a valid MyKad and a contribution payment.

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