KUALA LUMPUR (Dec 2): Malaysia’s Social Security Organisation (Socso) is studying potential incentives for contributors who have made long-term contributions without filing any claims.

Human Resources Minister Steven Sim Chee Keong said the incentives are aimed at workers who remain careful at the workplace, stay healthy, and therefore have not submitted any claims despite contributing for years to the agency also known as Perkeso.

“Perkeso is currently carrying out an actuarial assessment as part of the review,” he said when wrapping up the debate on the Employees’ Social Security (Amendment) Bill 2025 in the Dewan Rakyat on Tuesday. “If everything goes smoothly, we will announce the incentives soon.”

The amendment Bill received the green light from the lower house via a majority voice vote after 10 Members of Parliament from both sides of the aisle debated and expressed their support.

Among others, the Bill seeks to introduce a new social security scheme — the Non-Employment Accident Injury Scheme — which extends round-the-clock protection to employees for accidents occurring outside working hours and not related to their employment.

On Socso’s financial capacity to fulfil claims, Sim noted that payments to contributors currently account for 77% of its annual collections, well below the global best-practice payout ratio of 86%. In 2024 alone, Socso paid out more than RM6.2 billion to contributors.

Socso’s operating expenditure also remains within prudent levels at between 12% and 14%, while its capital preservation rate stands at 15%, reflecting strong financial management, he highlighted.

Most disputes stem from technical gaps or cases falling outside the legal definition of workplace accidents, which are issues that will be addressed under the amended Bill, Sim said.

“So there is no reason for Perkeso to reject any legitimate claim,” he added.

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