KUALA LUMPUR: By the middle of next year, nearly nine million Malaysian workers, could enjoy 24-hour Social Security Organisation (Perkeso) coverage.
Perkeso's Employment Injury Scheme currently protects employees in the course of their work, but efforts are underway to expand the coverage to all hours.
"The government wants to amend the Employees' Social Security Act to provide 24-hour coverage," said deputy Perkeso chief executive officer of strategy and corporate Edmund Cheong.
"Right now, many employees come to Perkeso wanting to claim benefits after getting involved in accidents outside working hours.
"We can't help them because the law doesn't allow it," he told the New Straits Times yesterday. He said it was understandable as few employers have insurance schemes for their workers.
"More than 95 per cent of companies in the country are micro, small and medium enterprises (MSMEs), and they may not be able to afford insurance benefits for their workers."
Cheong said once the law was amended, Perkeso would provide 24-hour coverage for all accidents, regardless if they were work-related or not.
"Perkeso does not want people to fall into poverty as a result of an injury, and this is where the 24-hour coverage will be vital."
Perkeso, Cheong said, differed from private insurance schemes as its protection schemes not only provided lump-sump payments but they were also designed for income replacement.
"So, if you lose your leg at work, Perkeso will compensate you for 90 per cent of your average last drawn salary for the rest of your life.
"Now you only have that coverage if you lose your leg in the course of your work. Once we have 24-hour protection you will always be covered, even if you are injured at home."
The same applies to death benefits, where Perkeso pays a contributor's dependants 90 per cent of the average salary for the rest of their lives and their children until they reach the age of 21.
Round-the-clock protection could be important for those in the private sector as many workers cannot afford to rely on their retirement savings in the event of an injury or disability outside of work.
In November last year, the Finance Ministry revealed that 6.3 million Employees' Provident Fund members under 55 had less than RM10,000 in their accounts.
Cheong said the 24-hour coverage would require workers to make additional monthly contributions at a quantum to be finalised by the government.
He added that the 24-hour scheme would also cover Malaysians injured on overseas work trips.
"We will be one of the first few countries in the world to offer workers 24-hour protection," he said, adding that New Zealand's workers' safety net was the standard other countries looked at in implementing similar schemes.
Perkeso has held engagements with employer and employee groups, and other stakeholders.
In the case of gig workers, Cheong said Perkeso's goal was to eventually extend coverage to them as well.
The Gig Workers Bill will first need to be passed to facilitate their contributions to Perkeso."