KUALA LUMPUR: The Social Security Organisation (Perkeso) will enforce a new salary ceiling for contribution purposes from RM5,000 to RM6,000 starting today.
The organisation said this enforcement follows amendments to the Workers' Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
"The move to increase the salary ceiling will provide better benefits to employees earning more than RM5,000, with an increase in the benefit payment rate of up to 20.2 per cent."
Starting from Oct 1, the contribution amounts for employees earning more than RM5,000 and RM6,000 per month will apply as stated in the Third Schedule of Act 4 and the Second Schedule of Act 800," Perkeso said in a statement today.
It said that an estimated 1.5 million workers, or nearly 15.5 per cent of all Perkeso contributors nationwide, will be affected by this salary ceiling increase, which includes both local and foreign workers.
Perkeso said benefits include Temporary Disablement Benefit (FHUS), Permanent Disablement Benefit (FHUK), Dependants' Benefit (FOT), Invalidity Pension and Survivors' Pension under Act 4, as well as the Employment Search Allowance (EMP), Reduced Income Allowance (EPB), and Early Re-employment Allowance (EBSA) under Act 800.
It also added that contribution payments starting from Oct 1, 2024, and onwards must be made by employers according to the new salary ceiling limit.
"Employers are required to record the contribution deduction amounts in their employees' payroll statements or slips for record-keeping purposes and for inspection activities by Perkeso," the organisation said.