SHAH ALAM, July 9 - The Social Security Organisation's (SOCSO) LINDUNG 24 scheme is no longer mandatory for local hires but is now voluntary, effective immediately.
Human Resources Minister Datuk Seri Ramanan Ramakrishnan said that contributions to the LINDUNG 24 JAM scheme remain mandatory for foreign workers and will continue to be implemented in accordance with existing legal provisions.
“The Cabinet decided yesterday that contributions to LINDUNG 24 Jam would no longer be mandatory, effective immediately,” he said in a statement today.
Ramanan added that this will allow Malaysian employees to decide whether to contribute to the scheme based on their individual needs and considerations.
"The implementation mechanism and voluntary contribution process for local employees will be announced by SOCSO in the near future," he said, noting that the scheme, which covers non-work-related accidents, remains a crucial initiative even though participation is now voluntary for locals.
It provides social security protection against accidents occurring outside of work hours and the workplace, including during daily activities.
“SOCSO will continue to strengthen efforts to raise awareness about the importance of the social protection scheme.
“This is to ensure the public receives clear and accurate information regarding the scheme's benefits, enabling them to make the best decisions," he said.
Similarly, the ministry will review the scheme's implementation mechanism by the end of this year.
“It will include the policy direction, implementation effectiveness, and fund sustainability to ensure the scheme remains viable and continues to benefit the people.
"If there is a necessity, the findings of the review will be presented in Parliament to propose amendments to the Employees' Social Security Act 1969," Ramanan said.
Yesterday, Communications Minister Datuk Fahmi Fadzil said that Prime Minister Datuk Seri Anwar Ibrahim had provided feedback on the 0.75 per cent salary contribution by employees for LINDUNG 24 Jam.
Subsequently, the Cabinet decided that the contribution would no longer be mandatory, but voluntary, with immediate effect.
