PERKESO says 8.5 million workers remain covered under LINDUNG 24 JAM, with RM9.97 million in benefits paid during its first three months
KUALA LUMPUR: Some 8.5 million workers, or 87.6 per cent, remain enrolled in the Social Security Organisation’s (PERKESO) LINDUNG 24 JAM Scheme, reflecting the majority’s awareness of the importance of social security protection beyond working hours.
PERKESO Group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said the figure reflected workers’ confidence in protection extended beyond working hours, particularly against the risk of accidents that could occur at any time.
“To give a clearer picture, in a year, a formal sector worker in Malaysia spends only about 33 per cent of their time working, including commuting to and from work.
“This means the remaining 67 per cent, or about 244 days, are not covered if an accident occurs outside working hours, although during this period, a person remains a worker with responsibilities towards themselves and their family,” he told a press conference here today.
The LINDUNG 24 JAM Scheme, introduced on June 1, aims to extend protection to workers who suffer accidents unrelated to their employment.
Mohammed Azman said the scheme contribution rate in Malaysia, at 0.75 per cent, was among the lowest in the region compared with other countries.
He said social security contribution rates in Indonesia were as high as 1.74 per cent, Myanmar (up to 1.5 per cent), Japan (up to 8.8 per cent) and South Korea (up to 18.56 per cent).
According to him, social protection differed from private insurance as it served as the last social safety net to prevent workers from falling into the poverty group.
“The implementation of scheme has begun to show its effectiveness, with PERKESO receiving 6,330 claims during the first three months from June 1 to Aug 31, averaging about 69 cases a day. Of this total, the overall benefits paid amounted to RM9.97 million,” he said.
He said the payments covered various benefits, including temporary disablement benefits, permanent disablement benefits, medical expenses reimbursement, funeral benefits, dependants’ benefits, as well as rehabilitation equipment and implants.
Meanwhile, Mohammed Azman expressed concern that workers earning below RM3,500 constituted the largest group among the 12.4 per cent who opted out of the scheme.
“This situation is very concerning as the majority of this group do not have private insurance coverage, as reported by Bank Negara Malaysia (BNM).
“More concerning, the largest group opting out of LINDUNG 24 JAM are mostly working in Selangor, Kuala Lumpur and Putrajaya, accounting for 53 per cent. Another 11 per cent are in Johor, nine per cent in Penang, while the remaining 27 per cent represent other states,” he said.
He said the situation placed workers in a high-risk group that could be affected by financial shocks if they suffered misfortune outside working hours.
“BNM data for 2024 also revealed that only 45.5 per cent of Malaysians have life insurance, while participation among the B40 group is much lower, at around four per cent,” he added.
