Socso is Waiving Late Payment Fees for Employers
Are You Hiring?
Find candidates in 72 Hours with 5+ million talents in Maukerja Malaysia & Ricebowl using Instant Job Ads.
Hire Now
In conjunction with its golden jubilee celebration, Social Security Organisation (Socso) is offering two incentives for employers.
Socso is exempting interest on Late Payment of Contributions (ILPC) for companies who have yet to register with them. However, the companies will have to do so by June 30, 2021.
Based on the Employment Insurance System Act 2017 (Act 800) and the Employees Social Security Act 1969 (Act 4), the exemption is applicable for registration by employers. Socso will provide a discount for compounds to employers who have exceeded the duration.
Socso chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed. Source: Facebook
The chief executive officer of Socso, Datuk Seri Dr Mohammed Azman Aziz Mohammed, stated that the organisation was aware of companies' challenges during the pandemic and aimed to reduce employers' financial burden by offering the two incentives.
Mohammed Azman said that 8.57 million employees were receiving Socso protection last year, and 487,706 active employers had signed up under Act 4.
He added that Socso had stretched out the coverage scope under Act 4 to foreign workers working legally in Malaysia, effective Jan 1, 2019. About 1.6 million foreign workers have signed up with Socso so far.
Based on the number of organisations Socso visited during operations in more than a decade, Mohammed Azman said about 13% of employers were not registered, and many of them were SMEs with a small number of employees.
Penalty for not registering with Socso
Employers who fail to register their company and workers within the stipulated term committed an offence that can be compounded and prosecuted.
If found guilty, an employer can be fined up to RM10,000 or jailed up to two years, or both.
Apart from that, if the employer fails to register within the stipulated period, they could face interest payment at a 6% rate for a year on contribution arrears.
From 2010 to 2021, there have been 17,461 cases for prosecution under Act 4 for numerous offences.
Malaysian Employers Federation (MEF) commended Socso
The executive director of MEF, Datuk Shamsuddin Bardan lauded Socso's move, noting that most organisations that had not registered their employees were micro-enterprises, unaware of the requirements.
He said that employers should not make assumptions and risk breaking the law, and they should ask Socso or relevant agencies to clear any doubt.
Socso said that employers should seize the opportunity to sign up and protect their workers. Employers can sign up through the ASSIST Perkeso portal at www.perkeso.gov.my.
Source: The Star
Articles that might interest you
HR Guide: How e-CP39 Can Help Employers With PCB
HR Guide: The Basics of Form E
You Can Claim These Tax Reliefs for Year of Assessment 2020