Perkeso urges lower-paid workers who opted out of Lindung 24 Jam to reconsider, warning they and their families could face financial risks after accidents.
KUALA LUMPUR: Lower-paid workers who opt out of Perkeso’s Lindung 24 Jam scheme could leave themselves and their families financially vulnerable if they suffer an accident outside working hours, the agency warned.
Perkeso chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said workers earning below RM3,500 accounted for 52% of those who opted out, despite the same income group making up 74% of workers submitting claims.
He said this raised concerns over protection for lower-income workers, who formed the majority of claimants under the scheme.
“We hope they will think again and reconsider the importance of this Lindung 24 Jam protection,” he told a press conference at Menara Perkeso today.
“Think about our future as workers, the future of our families and our children.”
Azman said 8.5 million workers, or 87.6%, remained enrolled after workers were given the option to withdraw following the Cabinet’s July decision not to make contributions compulsory.
The remaining 12.4% opted out before the withdrawal window closed on Aug 31.
He said continued participation reflected awareness of the importance of protecting workers and their dependants against accidents, disability or death.
“If there is a death, their wives, husbands, children and parents will continue to be protected under the existing social security scheme,” he said.
Azman cautioned workers against assuming that private insurance or medical cards removed the need for social protection.
“We provide social protection. We are the last safety net helping workers before they fall into poverty,” he said.
“Do not think, ‘I earn RM10,000, I can afford insurance, I have insurance coverage, I do not need social protection.’ That is the wrong understanding, the wrong concept.”
Perkeso received 6,330 claims under Lindung 24 Jam between June 1 and Aug 31, averaging 69 cases a day, with RM9.97 million paid in benefits.
These included temporary and permanent disablement payments, medical expense reimbursement, funeral benefits, dependants’ benefits, rehabilitation aids and implants.
Azman said short-term payments did not represent the scheme’s full financial commitments, with longer-term payment obligations potentially exceeding 10 times the short-term amount.
Responding to concerns about affordability, he defended the scheme’s starting contribution rate of 0.75%, saying Perkeso could provide comparisons with contribution rates in neighbouring countries.
Asked about the scheme’s financial sustainability following the withdrawals, he said a clearer picture of contribution collections would emerge after Sept 15, when August contributions were due.
He said assessments also needed to take into account benefit payments and long-term liabilities, alongside contributions collected.
“Pooling of resources, sharing of risk,” he said, describing the approach of bringing contributions into one fund and sharing risks collectively.
Meanwhile, about 10,000 workers who initially opted out have since returned to the scheme.
Although the withdrawal window has closed, Azman said workers could rejoin at any time using the available opt-in form.
“Anyone who wants to opt in can do so at any time because, if possible, we want everyone to be covered,” he said.
He said keeping the withdrawal window open would cause confusion for employers’ human resources systems and Perkeso’s own system.
Perkeso would continue reaching out to workers who had withdrawn, with its teams available to explain the scheme to employers and workers.
