Incentive of up to 80% for contributors under Social Security Scheme for self-employed next year

by BERNAMA / pic by TMR FILE

KUALA LUMPUR – The government is expected to provide incentives of up to 80 per cent to contributors of the Social Security Organisation (SOCSO) under the Social Security Scheme for the Self Employed next year.

Deputy Minister of Human Resources Datuk Awang Hashim said for this year, the amount of incentive or subsidy provided by the government was 70 per cent of RM232.80, which is the total contribution paid by contributors in a year.

“Only RM20 to RM30 more will be paid by contributors in a year with the new incentive,” he said during the question and answer session at the Dewan Rakyat today.

He was responding to a question from Datuk Mohd Salim Sharif (BN-Jempol) on efforts to encourage those involved in p-hailing and e-hailing to  contribute to the SOCSO protection scheme and the Employment Insurance System (SIP).

Awang said there are four subscription option plans provided under the Self-Employment Social Security Act (Act 789), namely RM157.20; RM232.80; RM442.80; or RM592.80 for a one year coverage.

He said self-employed individuals involved in p-hailing have been required to register and contribute to SOCSO.

This, he said, was in line with the gazetting of the Self-Employment Social Security Regulations (Contribution Rates for Persons Carrying out Transportation Services and Delivery of Goods or Food) 2021 dated Sept 21, which came into effect last Oct 1.

Therefore, self -employed individuals involved in transportation services and delivery of goods or food are required to register and contribute to SOCSO starting last Oct 1, he added.

Awang said efforts were continuously made by the the government to increase the contributions of SOCSO and SIP protection schemes, especially for individuals involved in p-hailing and e-hailing.