Many employees are surprised to see additional deductions on their payslips. Some wonder why their salaries have decreased and where the money is being channeled.
In fact, the deductions are related to social protection contributions under SOCSO which aims to provide broader protection to employees in Malaysia. Southeast Asia & Pacific Islands
SOCSO or the Social Security Organization was established to protect employees in the event of unforeseen events such as accidents, disability or death.
The SOCSO Act was passed in 1969 before the organization began operating in 1971.
To date, SOCSO has protected millions of employees nationwide through various social protection schemes.
The issue of additional contribution deductions began to receive attention when many employees did not understand the true purpose of the change.
Some of them only saw the reduced salary amount without knowing that the contributions were related to the new protection scheme.
This caused many questions and heated discussions on social media.
Among the schemes introduced is Lindung 24 Jar which aims to extend protection to employees not only while performing their duties, but also outside of working hours subject to the specified conditions.
This scheme comes into effect on 1 June 2026 and provides protection at all times.
Through this additional contribution, employees have the opportunity to receive benefits such as medical benefits, disability benefits and benefits for dependents in the event of an accident or unforeseen event.
Although many initially see it as a salary deduction, understanding the purpose of this contribution helps employees see the importance of more comprehensive social protection.
