In a significant move to enhance social security protection for foreign workers in Malaysia, the government has expanded the coverage of the Invalidity Scheme to include all foreign workers, including expatriates and foreign domestic workers. This extension took effect on July 1, 2024.
What is the Invalidity Scheme?
The Invalidity Scheme provides financial support to insured persons who become permanently disabled and are unable to work. To qualify for benefits, an insured person must meet the following criteria:
- Permanent Disability: The disability must be of a permanent nature, either incurable or unlikely to be cured.
- Loss of Earning Capacity: The person must no longer be able to earn a living through work that suits their abilities.
- Reduced Earnings: Their current earnings must be at least one-third lower than what a healthy person with similar skills would earn.
Benefits Under the Invalidity Scheme
The Invalidity Scheme offers several benefits to eligible insured persons:
- Invalidity Pension: A monthly payment for those who meet the eligibility criteria.
- Invalidity Grant: A one-time lump sum payment for those who qualify but are not eligible for a pension.
- Constant-Attendance Allowance: A monthly allowance for those who require constant care.
- Survivor’s Pension: A pension for eligible dependents of an insured person who dies.
- Funeral Benefit: A one-time payment of the actual amount incurred or RM2,000, whichever is lower, to cover funeral expenses.
- Rehabilitation Facilities: SOCSO provides support for physical and vocational rehabilitation, as well as dialysis facilities.
Key Points to Remember
- All foreign workers employed in Malaysia are now eligible for the Invalidity Scheme.
- The scheme provides 24-hour coverage for disability and death.
- Benefits include pension, grants, allowances, and rehabilitation support.
- Employers are responsible for ensuring their foreign workers are enrolled in the scheme.
Conclusion
The extension of the Invalidity Scheme coverage to foreign workers is a positive development that provides greater protection and security for this vulnerable population. By understanding the benefits and requirements of the scheme, foreign workers can ensure they are adequately protected in case of disability or death.
For more information and to verify your coverage, please contact your employer or visit the SOCSO website.
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