Malaysian workers who do not wish to continue contributing to PERKESO’s LINDUNG 24 Jam scheme will be able to opt out online beginning Monday, July 13.
However, workers who withdraw will no longer be protected for accidents, injuries or deaths that happen outside working hours.
The option will only be available to local workers, while contributions will remain compulsory for foreign employees.
Workers must sign liability waiver
According to Sinar Harian, PERKESO Group Chief Executive Officer Dato’ Sri Dr Mohammed Azman Aziz Mohammed said workers who wish to leave the scheme must complete an online liability waiver declaration.
“Anyone who wishes to leave the scheme must fill in a form that we consider a liability waiver declaration.
“Once the declaration is submitted, PERKESO or the employer will no longer be responsible.
“This means accidents, injuries and deaths that occur outside working hours will not receive any protection. So, do not blame PERKESO or the employer after this,” he said during a press conference at Menara PERKESO on Friday.
The waiver means workers acknowledge that they will not be entitled to benefits under the scheme for incidents that happen during their personal time, including on rest days and public holidays.
Scheme made voluntary following Cabinet decision
The Cabinet decided on Wednesday that participation in LINDUNG 24 Jam would no longer be compulsory for local workers and would instead be made voluntary with immediate effect.
Unity Government spokesperson Datuk Fahmi Fadzil said the decision was made after Prime Minister Datuk Seri Anwar Ibrahim raised feedback received over the implementation of the contribution scheme.
Previously, more than nine million contributors under the Employees’ Social Security Act 1969, also known as Act 4, received automatic coverage for non work related accidents from June 1.
Human Resources Minister Datuk Seri R. Ramanan previously said the scheme was introduced to widen Malaysia’s social security protection network beyond accidents that happen at work.
It was designed to provide coverage around the clock, including during public holidays and rest days.
Foreign workers still required to contribute
In an official media statement, PERKESO clarified that the policy change only applies to local employees.
While Malaysian workers may choose whether to remain in the scheme, contributions will continue to be mandatory for foreign workers.
PERKESO said it took note of the Cabinet’s decision to change the policy for local employees while maintaining the compulsory requirement for foreign workers.
PERKESO urges locals to remain covered
Despite the opt out option, Mohammed Azman strongly encouraged local workers to continue contributing to LINDUNG 24 Jam.
He said the scheme could provide income replacement and financial support if a worker was involved in an unexpected incident outside working hours.
According to him, the contribution rate was relatively low compared to other protection premiums available in the market.
He added that it should not simply be viewed as an additional financial burden, but as protection for workers and their families as accidents can happen unexpectedly.
Nearly RM2 million paid out in one month
PERKESO also revealed that an average of around 27 cases were recorded daily for benefits under LINDUNG 24 Jam.
Nearly RM2 million in benefits were distributed within the first month of the scheme’s implementation.
Mohammed Azman said this was higher than the average of around 13 applications received daily in 2025 that had to be rejected because they were classified as non work related accidents.
He said the figures showed the importance of the scheme in helping contributors and their dependants continue supporting themselves following an unexpected incident.
Scheme may be reviewed by year end
Mohammed Azman acknowledged that allowing workers to opt out could affect the sustainability of the fund and the distribution of benefits in the long term.
As a result, PERKESO and the Human Resources Ministry are expected to review the implementation mechanism of LINDUNG 24 Jam by the end of 2026.
The scheme is fully funded through employee contributions and is implemented according to the phases set by the government, subject to a monthly salary ceiling of RM6,000.
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