_(4)-APP.jpg&w=1920&q=75)
KUALA LUMPUR (July 10): Malaysians can opt out of Social Security Organisation’s Lindung 24 Jam starting next week, following the Cabinet’s decision to make the scheme voluntary for locals.
Contributors who wish to withdraw from the scheme are required to complete a liability waiver which will serve as a legal basis should any disputes arise. The liability waiver form will be available online on July 13. The scheme, however, remains mandatory for foreign workers.
The agency, also known as Socso or its Malay acronym Perkeso, is strongly encouraging local employees to continue their contributions to the now optional scheme, said its chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed.
“[It] provides a guarantee of continuity of life through income replacement should a misfortune occur outside of working hours,” he said.
Implemented on June 1, the Lindung 24 Jam scheme provides round-the-clock protection for eligible employees throughout their employment period, including coverage for accidents occurring outside working hours and unrelated to their job duties.
The scheme, however, attracted brickbats due to the compulsory deduction from employees’ monthly salary. On Thursday (July 9), Communications Minister Datuk Fahmi Fadzil said the decision to make the scheme voluntary was finalised during a Cabinet meeting.
Socso has recorded around 27 cases on average each day for disbursement of benefits, amounting to payout of almost RM2 million within the first month of the scheme’s implementation.
A formal review of the implementation mechanism for Lindung 24 Jam will be carried out together with the Ministry of Human Resources by the end of this year, Mohammed Azman said.
“Once the scheme is voluntary, we really need to look into the trends and claims, for the next few months, [to gauge] whether it is sustainable or not,” he said, adding that the review will then be presented to the government.