Socso to disburse RM103m to retrenched workers in 2018

This will be done before the introduction of the EIS benefits in 2019


The Social Security Organisation (Socso) is expected to disburse about RM103.1 million to retrenched workers in 2018 as an interim benefit before the introduction of the Employment Insurance Scheme (EIS) benefits in 2019.

CEO Datuk Dr Mohammed Azman Aziz Mohammed (picture) said the projection is based on the 57,282 potential claims relating to loss of employment that are expected to be processed in 2018.

“The benefits of the EIS can only be reaped in 2019, 12 months after contribution.

“For those Socso contributors who will be retrenched in 2018, they will be entitled to an interim benefit — in a form of case allowance — of RM600 per month, for up to three months,” he said at the EIS media briefing in Kuala Lumpur yesterday.

Mohammed Azman added that RM136 million has been set aside for those who will face retrenchment next year.

“Basically, RM122 million comes from the government through the Economic Planning Unit and the remaining RM14 million is obtained through our investments,” he said.

The scheme was approved at the Dewan Rakyat on Oct 25 this year. It will be tabled at the Dewan Negara again before it officially becomes a law after obtaining the Royal Assent.

“The Ministry of Human Resource, together with Socso, are making the necessary arrangement to successfully implement the scheme as scheduled,” he said.

Mohammed Azman added that workers who are in retrenchment schemes, such as the voluntary separation scheme and mutual separation scheme, are eligible to receive EIS benefits.

The collection of contributions can be made through Socso’s counters, the organisation’s online portal, or through the 18 banks that acts as a collecting agent on behalf of the organisation.

Meanwhile, Socso chairman Tan Sri Dr Aseh Che Mat said if the fund collected is insufficient to cover for the country’s retrenchment, the scheme’s contributions of 0.2% for both employers and workers will be raised to 1.5%.

“With the contribution rate being the lowest among other countries, we expect to collect at least RM479 million a year.

“A proposal to increase the rate will be made to see whether an increment is necessary if the amount is insufficient. However, it will have to first go through Socso’s board of directors, as well as the Cabinet for approval,” he said.