Tenth Actuarial Valuation of the Social Security Fund in Response to Section 82 of the Social Security Act 1696
The Social Security Organization (SOCSO) was established in 1971 under the Ministry of Human Resources (MOHR) to administer the social security schemes under the Employees' Social Security Act 1969 (Act 4), i.e. the Employment Injury Insurance Scheme and the Invalidity Pension Scheme. Under this scheme, workers are provided with compensation in cases of industrial accidents, occupational diseases and general invalidity.
SOCSO’s function includes planning reforms of the scheme as well as general administration such as registration of employers and employees, contribution collections, benefits processing and payments to injured workers and dependents. SOCSO also offers vocational and physical rehabilitation benefits and works to improve awareness of occupational safety and health among employers and workers.
SOCSO administers two types of social security schemes; the Employment Injury Insurance Scheme and the Invalidity Pension Scheme. The Employment Injury Insurance Scheme provides compensation for employees who suffer accidents while commuting or during their employment, or contract occupational diseases. The Invalidity Pension Scheme offers workers twenty-four hour coverage against invalidity or death, irrespective of the cause.
The principal employer must pay monthly contribution for each eligible employee, in line with the rates specified under the Act and the SOCSO Contribution Schedule. Currently these are set at 1.25% of total wages for the Employment Injury Insurance Scheme (paid by the employer) and 1.0% for Invalidity Pension Scheme (shared equally by employers and workers).
The benefits provided under the schemes are:
SOCSO has asked the ILO to undertake the tenth actuarial valuation. This is expected to serve as one of the periodical actuarial valuations required by law. At the same time it is intended to shape options for reforms and to assess the relevance of the reforms that were proposed by the ninth actuarial valuation.
The recommendations will be reformulated so that they support improvements in the coverage and adequacy of the benefits, and help to secure the long-term financial sustainability of the systems, in line with the Social Security Act v1969. The ILO will continue to provide periodic technical assistance during this process.
SOCSO’s function includes planning reforms of the scheme as well as general administration such as registration of employers and employees, contribution collections, benefits processing and payments to injured workers and dependents. SOCSO also offers vocational and physical rehabilitation benefits and works to improve awareness of occupational safety and health among employers and workers.
SOCSO administers two types of social security schemes; the Employment Injury Insurance Scheme and the Invalidity Pension Scheme. The Employment Injury Insurance Scheme provides compensation for employees who suffer accidents while commuting or during their employment, or contract occupational diseases. The Invalidity Pension Scheme offers workers twenty-four hour coverage against invalidity or death, irrespective of the cause.
The principal employer must pay monthly contribution for each eligible employee, in line with the rates specified under the Act and the SOCSO Contribution Schedule. Currently these are set at 1.25% of total wages for the Employment Injury Insurance Scheme (paid by the employer) and 1.0% for Invalidity Pension Scheme (shared equally by employers and workers).
The benefits provided under the schemes are:
- Medical Benefit,
- Temporary Disability Benefit,
- Permanent Disability Benefit,
- Constant Attendance Allowance,
- Rehabilitation Benefit,
- Dependents’ Benefit,
- Funeral Benefit
- Education Benefit.
SOCSO has asked the ILO to undertake the tenth actuarial valuation. This is expected to serve as one of the periodical actuarial valuations required by law. At the same time it is intended to shape options for reforms and to assess the relevance of the reforms that were proposed by the ninth actuarial valuation.
The recommendations will be reformulated so that they support improvements in the coverage and adequacy of the benefits, and help to secure the long-term financial sustainability of the systems, in line with the Social Security Act v1969. The ILO will continue to provide periodic technical assistance during this process.