MTUC threatens nationwide pickets over Socso contribution hike

The Malaysian Trades Union Congress (MTUC) will stage pickets at Socso offices nationwide over the Non-Employment Injury Scheme, also known as Lindung 24 Jam, and the additional contribution imposed on workers.

MTUC secretary-general Kamarul Baharin Mansor said this is to pressure Socso to engage workers’ representatives and halt the collection of additional contributions.

“MTUC wants discussions to be held immediately on the contribution rates for both workers and employers,” he said in a statement today.

No dates were stated for either the pickets or discussions.

Under Lindung 24 Jam, employees contribute 0.75 percent of their wages during the first two years of implementation, with the contribution borne entirely by workers.

The rate is scheduled to rise to 1 percent for the following three years and 1.25 percent from the sixth year onwards.

The scheme, which took effect on June 1, provides 24-hour Socso protection for accidents occurring outside working hours and unrelated to employment.

It was initially introduced as mandatory, but the cabinet reversed the policy on July 8 after public feedback, making participation voluntary for local workers while retaining compulsory coverage for foreign workers.

Unfair burden

Kamarul said the 0.75 percent rate amounts to RM12.75 a month for a worker earning the RM1,700 minimum wage.

“Why is Socso putting so much pressure on and burdening workers without holding discussions with workers’ organisations?” he asked.

He described the additional payment as an unfair burden on workers already struggling with rising living costs and questioned the government’s decision to make the scheme voluntary after initially making it compulsory.

Kamarul claimed that MTUC’s previous attempts to discuss the scheme with the authorities were ignored.

“Several letters were sent to the Human Resources Ministry seeking discussions on the scheme, but unfortunately Socso did not take heed.

“The General Council has therefore decided to hold pickets in protest against the way the scheme is being implemented,” he said.

Questionable CEO salary rate

He further criticised plans to raise the contribution rate beyond 0.75 percent and questioned Socso’s management expenses, including the reported remuneration of its CEO.

“The issue of the Socso CEO’s salary, raised during a debate in Parliament in which it was claimed to be between RM90,000 and RM120,000, is deeply troubling to workers,” he said.

On Feb 24 last year, Jelutong MP RSN Rayer asked then human resources minister Steven Sim to verify claims that the CEOs of Socso, HRD Corp and TalentCorp were earning up to RM120,000 a month.

Sim replied that the remuneration arrangements predated his tenure and said he would provide Rayer with a detailed breakdown so the matter could be assessed based on accurate information rather than hearsay.

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