pertubuhan keselamatan sosial / (social security organisation )

Report
THE SOCIAL
SECURITY
ORGANISATION
OF MALAYSIA
(SOCSO)
OVERVIEW
INTRODUCTION
 LEGISLATION & ADMINISTRATION
 COVERAGE & BENEFITS
 FINANCIAL MANAGEMENT
 COOPERATION WITH ILO
 POLICY RESPOND
 CHALLENGES

PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
DEFINITION OF SOCIAL SECURITY
“The protection which society provides for its
members, through a series of public measures,
against the economic and social distress that
otherwise would be caused by the stoppage or
substantial reduction of earnings resulting from
sickness, maternity, employment injury,
unemployment, invalidity, old age and death; the
provision of medical care; and the provision of
subsidies for families with children”. - ILO
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
INTRODUCTION
9.
Family
1.
Old-age
8.
2.
Disability
Social
Security
Benefits
Unemployment
7.
3.
Death
Employment
Injury
4.
Sickness
5.
Maternity
6.
Medical
Care
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
INTRODUCTION
Labor
Department
Social
Insurance
Work related
Injury/
diseases
Employment
Act
Welfare Department
- Universal
- Means-tested
JPA (Public Services Department
(Public Sector Pension Scheme)
Employee
Provident
Fund
SOCIAL SECURITY IN MALAYSIA
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
LEGISLATION & ADMINISTRATION
ORGANIZATIONS RESPONSIBLE
Cooperation between Employers, Employees and Government
 SOCSO Malaysia was set up in 1971
 To implement, administer and enforce
The Employees' Social Security Act,
1969 and the Employees' Social Security
(General Regulations) ,1971.
 SOCSO has 46 branches in throughout
Malaysia
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
VISION
To become the leading
Social Security Organization
in the World
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
MISSION
SOCSO is committed to provide social
security for all Malaysian workers and their
dependents through the principles of social
insurance through:
Prompt, efficient and quality service;
Periodical review of the benefits system;
Prudent financial and investment
management; and
Promoting OSH
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
SOCSO'S STRATEGIES
SOCSO is committed to provide social security for all Malaysian
workers and their dependents through the principles of social
insurance through;
•Giving highest priority to the interest of the nation and the
organization.
•Providing prompt, efficient, quality, fair, precise, speedy and
economical services to the clients.
•Improving the skills and expertise of the SOCSO personnel besides
utilising advanced technology to upgrade client services.
•Periodical review of the benefits system
•Maintaining and strengthening the viability of the SOCSO Fund
•Prudent financial and investment management.
•Fostering goodwill and noble values amongst SOCSO's personnel.
•Co-operating with all the parties involved in the provision of social
security protection.
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COVERAGE
• Employers Liability
• Employee
– Who employs one or more
employees – required to
register & contribute
monthly for all employees
– All employee irrespective
of the employment status,
permanent, temporary etc
– Must register irrespective
of age; Age 55 and above
will continue to be
protected (EIS-e’yer)
– Earns a monthly wage RM3,000
or less
– More than RM3,000:
• Previously registered, must
compulsorily continue
• Not previously registered, can
opt to do so.
• Exemption:
–
–
–
–
Government employees
Domestic servants
Self employed persons
Foreign workers
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COVERAGE
• EMPLOYMENT INJURY
SCHEME (EIS)
– Protection for accidents:
• While traveling
• Arising out and in the
course of
employment
• Occupational disease
• INVALIDITY PENSION
SCHEME (IPS)
– Serious disablement or
morbid condition of a
permanent nature that is
either incurable
– Unable to earn at least 1/3 of
normal person
– 24 hours coverage
– Against invalidity or death
due to any cause not
connected with his
employment
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COVERAGE
383,215
390,000
380,000
370,000
360,000
350,000
340,000
330,000
320,000
310,000
300,000
290,000
• ACTIVE EMPLOYERS
389,344
366,312
349,413
335,335
326,840
2004
2005
2006
2007
2008
2009
• ACTIVE EMPLOYEES
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
Invalidity Pension Schemes
• Medical benefit
• Temporary disablement
benefit
• Permanent disablement
benefit
• Constant attendance
allowance
• Dependant’s benefit
• Funeral benefit
• Rehabilitation benefit
• Invalidity pension
• Invalidity grant
• Constant attendance
allowance
• Survivors pension
• Funeral benefits
• Rehabilitation
• Educational loan
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
• Medical benefits
– Occupational disease
– Treatment at SOCSO
panel clinic @
government
Hospital/clinic
– Free – socso
– Serious injury –
• to nearest government
hospital
• 2nd class ward-inpatient
• Temporary disablement
benefit
– Unfit for work not less
than 4 days
– Only during medical
leave
– Daily rate = 80% of daily
wage or min RM10 and
max RM78
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
• Permanent disablement
• Constant attendance
benefit
allowance
– Cash – certified of
permanent disablement
– Loss 100% = 90% daily @
min RM10
– Loss 20% or less = lump
sum payment
– Exceed 20% = 1/5 daily rate
into lump sum and balance
= monthly pension
– Can continue work
– Permanent total disablement
(100% loss)
– Severely incapacitated &
requires personal attendance
of another person
– 40% of rate total
disablement, max RM500
• Dependant’s benefit
– If employees dies
– 90% of the daily wage
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Employment Injury Schemes
• Funeral benefit
– RM1,500
– As resulted of EI or
while receiving
disablement benefits
– Next of kin @ person
– WIL
• Rehabilitation
benefit
– Facilities for
vocational & physical
rehabilitation
– training
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Qualifying condition
Invalidity Pension Schemes
• Has not completed age 55
• Certified by medical board
• Fulfilled the qualifying condition contribution
• Full qualifying condition
– At least 24 months within 40
consecutive months
– 2/3 = at least 24
– 50% - 65% of monthly salary
• Reduced qualifying
condition
– 1/3 = at least 24
– 50%
Minimum RM250
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Invalidity Pension Schemes
• Invalidity grant
– Paid for those who
are not qualified for
Invalidity pension
– At least 12 months
– amount of the total
contributions
– Outright payment
• Constant attendance
allowance
– Recipient of invalidity
pension
– 40% of the rate
invalidity pension
– Max RM500 per
month
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
BENEFITS
Invalidity Pension Schemes
• Survivor’s pension
• Funeral benefits
– Only if employee dies
irrespective of the cause of
death
• While receiving
invalidity pension
• Not more than 55 years
– Rate:
• Invalidity pension =
equal
• If not = 50% - 65%
– While receiving
invalidity pension
– Before 55 age
– As EIS
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
COOPERATION WITH ILO
 Since 1971, SOCSO has formed a strategic
cooperation with ILO in the form of technical and
legal advice that covered a broad range of policy and
strategic
issues,
including
social
security,
occupational safety and health, gender equality in
employment, and other aspects of labour standards.
 Recently, SOCSO and ILO began the Relief fund
project and study on unemployment insurance . The
ILO also supports actuarial work with SOCSO for
every five years and this is a ninth actuarial study.
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT
Year
Total Fund
Income
2007
2008
2009
2010
15517.8
16359.7
17702.6
18625.2
1689.5
1834.7
1868.8
2007.8
884.9
391.6
1015.2
870.8
32.1
4.3
17
28.5
2606.5
2230.5
2900.9
2907.1
Liabilities
1070.2
1198.9
1366.9
1699.7
Operating
Total
Excess
165.4
189.7
191.2
238.8
1235.1
1388.6
1558.1
1938.5
1370.9
841.9
1342.9
968.6
Contribution
Investment
Return
Others
Total
Expenditure
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT
Total Of Contribution & Benefit Payment
8
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT
STATISTICS TOTAL RECIPIENT
350,000
315,172
290,463
268,663
264,640 272,367
324,798
300,000
250,000
200,000
Recipient
150,000
100,000
2010- 351,433
50,000
0
2004 2005 2006 2007 2008 2009
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
FINANCIAL MANAGEMENT
STATISTICS PAYMENT OF BENEFIT
1,186.10
1200
1000
800
817.53
883.9
959.59
1,061.36
600
Mil
400
200
2009-1,354,128
2010-1,678,160
0
2004
2005
2006
2007
2008
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
STRATEGIES
New approach of Social Security
Compensation Oriented (Pay workers to
stay off work) defined as total
replacement of income with dynamic
Social
Security
through
Disability
management (Pay workers to return to
work).
The introduction of this comprehensive
approach was in response to the need to
cover a more diverse employee base.
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
CHALLENGES
•
•
•
•
•
•
•
Increasing cost
Investment issues
Efficiency in processing claims
Pressures from mass media
Pressures from NGOs
Migrant workers
Fraudulent claims
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
PROMOTION OF SAFETY AND HEALTH
• To play a complementary role in the promotion of
OSH in Malaysia
• To reduce occupational injuries and diseases through
Primary, Secondary and Tertiary Prevention
• To educate both employers, employees and public on
safe and healthy workplace.
• To co-operate with other bodies responsible for
promoting or policing O.S.H (like NIOSH,
DOSH,NGO’S) to bring awareness of the importance
of safety and health
• To gather and provide OSH data on Occupational
injuries and diseases for academic studies.
PERTUBUHAN KESELAMATAN SOSIAL
/ (SOCIAL SECURITY ORGANISATION )
THANK YOU

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