Ministry seeks increase in Socso collection
Posted on July 19, 2011, Tuesday
KUALA LUMPUR: The Human Resource Ministry is studying how to increase the collection of contributions to the Social Security Organisation (Socso) in order to balance with the compensation paid out to workers.
Its minister Datuk Dr S Subramaniam said among the measures that could help Socso increase the contributions by employers and employees was by offering additional services, but this was still at the proposal stage.
“Last year, Socso spent about RM2 billion on compensation for workers, including RM950 million in pensions paid out for cases of incapacitation and death,” he said after opening the Occupational Safety and Health Conference and Exhibition (COSH 2011), here, yesterday.
Also present were National Institute of Occupational Health and Safety (Niosh) chairman Tan Sri Lee Lam Thye, Departmenty of Occupational Safety and Health (Dosh) director-general Datuk Dr Johari Basri and Socso chief executive K Selvarajah.
More than 1,500 people from the public and private sectors are attending the conference.
Dr Subramaniam said RM500 million was paid out to workers involved in accidents during their working hours.
However, he declined to reveal the amount of contributions received by Socso in 2010.
He said that among the factors for the high amount of compensation paid out last year was because of the increased life expectancy of those receiving the life-long invalidity pension due to occupational accidents, to between 70 and 75 years.
Dr Subramaniam said the amount of Socso contributions paid by employers and employees was also low compared to the rates paid in developed countries that also provided social security.
In developed countries, he said, the workers contributed 20 to 30 per cent for social security but the amount commensurated with their monthly salary and the various social security services provided.
Dr Subramaniam also urged employers who have not set up an occupational safety and health committee to protect workers and create awareness on the importance of safety measures at the workplace, to do so.
He said such a committee was compulsory only for employers with 40 workers and above, and those who failed to form the committee could be taken to court by Dosh under the Occupational Safety and Health Act 1994. — Bernama
