PERKESO/SOCSO Benefits for Self-Employed Workers & Housewives

Malaysia’s social security protects not only full-time employees but also self-employed workers and even housewives. Learn more about the coverage and benefits from the contribution

Nowadays, we are seeing a trend of more Malaysians leaving their full-time job in private or government sector to work as a self-employed, gig workers or independent contractors. Some quoted reasons are to earn more (to a certain degree), flexible time and the freedom to pursue one’s passion instead of committing to 9-5 schedule.

Self-employed, including gig workers are people that are earning income by completing short-term jobs as independent contractors or freelancers. For example, many gig workers in Malaysia perform food delivery, online delivery and ride hailing services Malaysia is seeing a sharp rise of 25% from 2.4 million in 2021 to 3 million in 2023 for gig workers, freelancers and independent contractors.

The Pertubuhan Keselamatan Sosial (PERKESO), or also known as Social Security Organisation (SOCSO), was formed to administer, implement and enforce the Employees’ Social Security Act 1969 and the Employees’ Social Security (General) Regulations 1971 through the concept of joint responsibility via pooling of resources among members. With the rise of more gig workers, freelancers, and independent contractors, PERKESO has introduced The Self-Employment Social Security Scheme (SKSPS) under the provisions of the Self-Employment Social Security Act 2017 to support the gig economy and freelance workers in Malaysia with benefits and protection if they are contributing monthly to the scheme.

Aside from self-employed, PERKESO also provide the Housewives Social Security Scheme (SKSSR), established under the Housewives’ Social Security Act 2022, as a protection scheme for housewives in the unfortunate event that their family main breadwinner affected by an unexpected circumstance.

This article will look at both SKSPS and SKSSR details and their benefits.

#1. The Self-Employment Social Security Scheme (SKSPS)  

SKSPS is designed to extend a safety net to workers against employment injuries, ensuring they are not left adrift without financial aid. Self-employment injury refers to personal injury sustained by a self-employed insured individual due to an accident or occupational disease occurring during and related to their self-employment activities, including travel undertaken for these activities. 

Below are some of the benefits to self-employed individuals provided by the scheme: 

• Medical Benefit 

Self-employed individuals suffering from an injury or occupational disease are eligible for free medical treatment at PERKESO’s panel clinics or government hospitals. Alternatively, they can claim reimbursement for medical expenses incurred at non-panel clinics. To do so, they must apply to PERKESO, and the reimbursement will be subject to conditions set by PERKESO or in accordance with the Fees Act 1951.

• Temporary Disablement Benefit 

The Temporary Disablement Benefit is provided for the duration that a self-employed insured individual is on medical leave, as certified by a doctor, for a period of no less than four days, including the day of the accident. A medical certificate (MC) is required to qualify. The benefit ranges from a minimum of RM 30.00 per day to a maximum of RM 105.33 per day.

• Permanent Disablement Allowance

Self-employed insured individuals who suffer from permanent disability due to a self-employment injury can apply for this benefit. The Permanent Disablement Benefit is calculated at 90% of the selected insured monthly earnings.

For example, if the assessment rate is 20%, the age factor is 8873 (for individuals below 20 years of age), and the contribution is RM 592.80, the calculation would be as follows:

= (RM 3,950 x 90% ÷ 30 Days) x 20% x 8873 

= RM 210,290.10

• Constant-attendance Allowance 

This allowance is provided to self-employed insured individuals who suffer from total permanent disablement due to a self-employment injury and are so severely incapacitated that they constantly require personal assistance. This condition must be certified by a Medical Assessor or the Appellate Medical Board. The allowance is set at RM 500 per month.

• Dependents’ Benefit 

If a self-employed insured individual dies as a result of a self-employment injury, their dependents are entitled to a Dependents’ Benefit, which is 90% of the selected insured monthly earnings.

Eligible dependents include:

• Widow or widower and children under 21 years old

If there are no widow, widower, or children:

1. a) Parents
2. b) Siblings under 21 years old
3. c) Grandparents

Widows, widowers, parents, and grandparents receive lifetime benefits. Children are eligible to receive benefits until they reach the age of 21 or get married, whichever comes first. If the child is pursuing higher education, they will receive the benefit until they complete their first degree or get married, whichever occurs first.

The example of the Dependents Benefit calculation is shown below: 

• Facilities for Physical or Vocational Rehabilitation

Free physical and vocational rehabilitation services are available, including physiotherapy, occupational therapy, reconstructive surgery, and the provision of orthotics, prosthetics, and various aids like wheelchairs, crutches, hearing aids, spectacles, and specialized footwear. Vocational rehabilitation offerings include courses in sewing, radio repair, and more.

• Funeral Benefit 

Funeral Benefit is disbursed to eligible individuals in the event of the demise of a self-employed insured person due to a self-employment injury or while receiving periodic Permanent Disablement Benefit. The payment amount will be either the incurred actual expenses or RM 2,000, whichever is lesser.

• Education Benefit 

This benefit consists of loans that may be granted to the dependent child or children of a self-employed insured person who dies due to a self-employment injury or while receiving periodic Permanent Disablement Benefit payments.

How do you contribute? 

The contribution can be made monthly or yearly, either in cash at any Perkeso office nationwide or online through MATRIX’s Portal at matrix.perkeso.gov.my, the PERKESO Prihatin Application, or any authorized PERKESO agent (the list of which can be found at www.perkeso.gov.my/ejen-keselamatan-sosial-pekerjaan-sendiri.html).

You can also refer the contribution options schedule as below: 

Perkeso Contribution Options

You only need to provide a copy of your identification card and a copy of license/driver card/e-hailing profile/permit/certificate or confirmation letter from the relevant agency or association of the chosen industry. 

#2. The Housewives Social Security Scheme for Housewives (SKSSR)

In addition to supporting freelance and gig economy workers, PERKESO offers coverage for housewives through the Housewives Social Security Scheme (SKSSR), established under the Housewives’ Social Security Act 2022. This initiative aims to safeguard housewives from illnesses, accidents, and unforeseen circumstances that could result in permanent disability or incapacity, potentially impacting their ability to manage household responsibilities.

Below are some of the benefits of the scheme:

• Medical Benefit: Insured housewives affected by domestic injuries can seek medical treatment, subject to the Fees Act 1951, and receive outpatient care at hospitals, dispensaries, clinics, or other healthcare facilities. They are also eligible for second-class admission to the wards of any public hospital.
• Permanent Disablement Benefit: If an insured housewife suffers a permanent disablement due to a domestic injury that impacts her ability to manage household tasks, and this disability is certified by a medical assessor or the Appellate Medical Board, she is eligible for a lump sum payment. The payment, up to RM30,000, will be determined based on the contribution period and the nature of the injury
• Constant Attendance Allowance: A monthly payment of RM250 will be provided to an insured housewife eligible for the Permanent Disablement Benefit or Morbid Allowance, who is so severely incapacitated that she constantly requires personal assistance. This allowance will cease when the housewife reaches the age of 55 or passes away.
• Physical Rehabilitation or Dialysis Facilities: Financing of up to RM50,000 is available for an insured housewife suffering from invalidity or permanent disablement, subject to verification by a medical assessor or the Appellate Medical Board. This financing covers physical rehabilitation facilities, such as prosthetics, wheelchairs, crutches, and other aids. Dialysis treatment is capped at RM200 monthly or in accordance with the Fees Act 1951.
• Morbid Allowance: A monthly payment of RM300 is provided to an insured housewife if a medical assessor or the Appellate Medical Board certifies that she suffers from a permanent condition that prevents her from performing the majority of household chores. This benefit will cease when the housewife either reaches the age of 55 or passes away.
• Funeral Benefit: If the housewife covered under the policy passes away before reaching the age of 55 due to a domestic injury, while receiving morbid allowance, or for any reason during the coverage period, a single payment of RM2,000 as Funeral Benefit will be provided to eligible dependents or the party responsible for the funeral expenses.
• Survivors’ Pension: If the insured housewife passes away before reaching 55 due to a domestic injury, while receiving morbid allowance, or for any other reason during the coverage period, eligible dependents will receive a Survivors’ Pension of RM300, distributed according to their respective shares. This pension is granted to widowers and children; however, if the deceased leaves no widower or children, the pension will be paid to her parents. Children’s pension shares will be provided until they reach 21, marry, or complete their first degree. Mentally or physically disabled children unable to support themselves will continue receiving payments until they turn 55. Survivors’ Pension is exclusively for Malaysian citizen widowers or parents until they reach 55, with payments to widowers ceasing upon remarriage.

How do you contribute?

A contribution of RM120 is paid in advance for a period of 12 consecutive months. Contributions can be made on behalf of the housewife by her spouse, family, or any third party.

If a husband chooses to make contributions for his wife, the ‘once in, always in’ principle will apply, ensuring continuous coverage for the housewife. If the husband is unable to continue making contributions due to income loss or other circumstances, PERKESO should be notified within 60 days before the end of the current contribution period.

The eligibility criteria for the Housewives’ Social Security Scheme include being a Malaysian citizen or permanent resident and being under the age of 55. Additionally, for initial registration, the housewife’s age must not exceed 54 years. Furthermore, participants can make advance payments for 12 months of contributions. Claims for benefits under the scheme can be submitted at any PERKESO counter by filling out the Housewives’ Social Security Scheme Benefit Claim Form – SR 6.

Conclusion

The significance of social security coverage in a dynamic economic setting cannot be overstated. It is a crucial safety net, providing financial protection and peace of mind to individuals across various sectors. For self-employed individuals and housewives, it is crucial to have support for your financial security needs, especially when something unexpected happens to you and your loved ones. 

This call to action is for all working Malaysians to leverage PERKESO’s comprehensive social security services. Whether you are an entrepreneur, a self-employed professional, or part of the gig economy, PERKESO provides crucial support for your security needs. Contributing to PERKESO is not just a legal formality; it is an investment in a stable future for yourself and your dependents.

As a self-employed person or a housewife, are you contributing to PERKESO? 

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