This Is So Confusing!

I have a rather confusing question for my fellow Malaysians today. You see, I received an email from the company HR today reminding us of this thing here:

socso1
http://www.perkeso.gov.my/en/component/k2/item/3191-perluasan-liputan-perlindungan-keselamatan-sosial-pekerja-bi.html

When I saw this, I was like “Oh, f**k!”, because I know our Social Security (SOCSO) contribution is based on a fixed percentage of our monthly salary. If they raise the ceiling cap for contribution it can only mean I now have to pay more.

Come on, I’ve been working for 8 years now, as an engineer in an MNC. You would not believe me even if I tell you my salary is less than RM 4k 🙄 ...

socso2
http://www.perkeso.gov.my/en/component/k2/item/3771.html

And I was right. Basically I would have an additional RM 5 deducted from my paycheck every month and combined with my employer’s contribution, the SOCSO fund will get an additional RM 22.40 for my overall contribution every month. In fact they’ll get RM 22.40 more from every working class people who earns more than RM 4k a month.

Normally, I would be like “Okay, yeah, 5 bucks, big deal…”, but then I also came across this new article by New Straits Times.

socso3
http://www.nst.com.my/news/2016/05/144693/employees-earning-rm4000-month-eligible-socso-coverage

Now I was under the impression that when we contribute to SOCSO, it is kind of like a security fund which would take care of us in case we get permanent disability or something at work. Isn’t that what they term “coverage”?

But apparently, if we see what this minister says, it seems only those with income below RM 3k/month is eligible to be covered. Now RM 4k/month. Does it mean people like me have been contributing to SOCSO for… nothing?

That would piss me off big time, you know. Especially when they are now raking in RM 22.40/month more from each of us >RM 4k/month folks for… nothing. I’ll be conservative and estimate that at least 2 million taxpayers in Malaysia are on >RM 4k/month. That means at least RM 44.8 million/month, or more than RM 500 million/year for… nothing?

Any SOCSO expert here who could point out if my interpretation of what the minister said is wrong? Because otherwise then, man… that would be awesome… for the folks who could get their hands on this pile of cash. RM 2.5 billion in 5 years. Who needs 1M… never mind… 🙄

 

24 Comments

    • No lah, not politic news, should be fine one. Only political news not trustworthy anyway, and that applies for New Straits Times and Malaysiakini. Both also devils, just opposite sides.

  1. The job market has certainly changed over the last 10 years or so. Stress at work has gone up and so are bullying, victimisation etc. Confusion, it comes in different levels in the work place and so are subtleties.

    • This isn’t even workplace stress. More like government induced confusion or something 🙄 .

  2. I think your Social Security contribution is similar to our CPF contribution, for our CPF contribution we have employee contribution and employer contribution, for employee contribution, it will be deducted from our salary, as for employer contribution, it will be contributed by the company which hires us. Also, the employee contribution rate is reduced by age, as we get older, we need to contribute lesser.

    For us, our contribution is categorized into three types: Ordinary account where you can use to buy property, Special account where you can use to invest and Medisave where you can only use to pay hospital bills, upon retirement age (which gets higher every now and then), all the money in the Ordinary and Special Account will be transferred to Retirement Account, but you cannot withdraw all the money in your Retirement Account, the government will pay you a fixed monthly rate over your years of retirement, well, they think all of us will live a long life, this CPF thingy has always been a topic for debate during election.

    • The CPF is essentially a retirement fund, we have that too and it is called EPF. This SOCSO is different, it is like insurance, you pay and hope you never have to use it. If you don’t use it, you won’t get anything back.

      I think our PM is learning a lot from your PM, they are setting up more and more restrictions with our EPF these days, like raising the age limit to make a full withdrawal. I think soon it will be like Singapore where we can no longer withdraw whole lump sum unless we renounce citizenship.

  3. I don’t know much about this kinda thing… But it’s indeed very confusing right? Seems like a lot of conflicts or hidden issues.

    • Probably no hidden issue la, not everything is a conspiracy hehehe. But it is confusing, yes. 😐

  4. Getting more money taken out of your salary is always, well, who likes that. I don’t really know how SOCSO works, but do you get to keep the money that you contribute for old age and retirement, or is it just for use when you get sick or like a long-term injury?

    You should demand a promotion at your work. But we all know that is easier said than done. Getting a promotion is one thing, keeping your job is another thing altogether 🙄

    • As far as I know, SOCSO is like a welfare fund for permanent disability or death at work. If you retire without problems then you don’t get anything back.

      Demanding for a promotion? Shit like that doesn’t exist in real life.

  5. It’s basically charity it seems, those earning over 4k aren’t gonna be able to make claims. I supposed I’m happy to be making more than the cut-off figure.

  6. Uiks! My understanding previously is that if your salary is below RM3K, then you have to contribute to Socso. But even if your salary is above RM3K and if you were previously a contributor, you have to continue contributing (once in always in).

    I think what the minister meant is that now with the ceiling wage raised to RM4K, these employees can now contribute to Socso. So if you are currently a contributor and even if your salary is above RM4K, I believe you are still covered and can make a claim should you get injured or disabled. It would not make sense to cut us off when we are still contributing to Socso, right? That will sure cause a riot, I will protest!

    • Well, I believe that Phong Hong may be right and I was wrong in my understanding all along. You may be eligible to make a claim. I have tried to verify this by reading up all the stuffs on http://www.perkeso.gov.my/ but nothing was mentioned about claims eligibility based on current monthly salary so I guess Phong Hong is right after all but the claims need a lot of documents so I guess if your company covers you medically, I don’t think you want to take the trouble to get all the documents to make a claim under SOCSO even if you are eligible to do so. You can try going through the info on http://www.perkeso.gov.my/ to see if you can find anything about your question in this post.

      • I did read the website and felt reassured by it, I was just confused when the minister’s statements seem to point to the contrary. Hmm…

    • That’s what I thought. As long as you start below 3k (now 4k) then you must contribute for as long as you working, and if you exceed then you can opt to contribute. But once you contribute, you are covered. Seriously, how many can start with more than 3k (now 4k even more ridiculous) as a fresh grad? 🙄

      I’m fine to contribute to the welfare of the lower income if that is really the case. But as we all know… you know… Now the question is why would they need to raise additional hundreds of millions per year… 🙄

  7. You seriously really woke me up on my sleepy desk!! I am handling an issue right now and I always thought the benefits would be be paid out to anyone or contributors, regardless of the salary scales, so long as they get medically certified as unfit to work. Now I need to check on certain facts. TQ!

    I went to the Socso office recently and it actually looked like a hospital’s lobby with so many injured, bandaged and disabled applicants limping there. I also learnt that they need not even go there by themselves at all. Anyone could go on their behalf to get the forms and fill up with chop verification by their employers and doctors before submitting back without their presence. For once, I was pleased with our government again.

    • See! I thought I was the only clueless one. Turns out I’m not, even old timers like you also confused. WTF…

      You know, I am still displeased with our govt for many things, but I kind of feel that their efficiency when it comes to paperwork processing has improved from since before 2008. Still not great, but I can see improvement, and that’s good.

  8. Urm.. I lagi confusing coz i know nothing about all these. Last time I work, I contributed lah. Now, tarak so everything out the window liao.

    • Hahaha you not even need to know lah, although I guess you hubs will pening. The more people he employ, the more pening he gets. 🙄

  9. Your understanding is correct. I knew all along that I was not eligible to claim anything under SOCSO because my salary is above RM3k (last time) although I do contribute to it. Now they are just changing the RM3k to RM4k. Last time when you were also not eligible to claim for SOCSO when your salary was above RM3k so it is still the same. Just that you are giving RM5 more monthly only now.

    There are many, many, many people earning less than RM4k per month. Way more people earning less than RM4k per month than those earning more than RM4k per month so those people earning more than RM4k is doing charity work to support those earning less or equal than RM4k per month lah.

    • Yeah, the news article already said, they expect 6.5 million people to benefit when the cap was 3k, now with 4k an additional 500k people will stand to benefit. Considering our entire population and the probable ratio of working population out of it, I’m guessing at least 2 million then to be on 4k or more. So yeah, the sub 4k far outnumbers us.

      I don’t really mind doing charity to help those lower income folks. And I hope our contribution is really towards that cause. Although I don’t understand why they need at least 500 million a year more now. Are there more permanent disability going on in Malaysian workplace these days? That would sound… scary. 😐

  10. seems like my understanding is same as yours…I’m kinda frustrated after reading this! the working class here hav been paying income taxes, now socso (for nothing)??!! tht’s ridiculous!

    • Nothing for us, good for those below 3k/month folks I suppose. Pool our resources to help the less fortunate I guess. 🙄

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