Summary
- Cabinet reverses mandatory contribution policy.
- Local workers may now opt in voluntarily.
- Mandatory contributions remain for foreign workers.
- Government to review scheme by year-end.
KUALA LUMPUR, July 9 — The government has made a U-turn by making contributions to the SOCSO Lindung 24 Jam (Non-Employment Injury Scheme) voluntary for local workers.
Communications Minister and Government Spokesman Fahmi Fadzil said the Cabinet approved the change after Prime Minister Anwar Ibrahim reviewed public feedback on the scheme.
Meanwhile, Human Resources Minister R. Ramanan said the decision takes immediate effect. Mandatory contributions will continue for foreign workers.
While Social Security Organisation (PERKESO) will announce the voluntary contribution mechanism soon. The scheme will also be reviewed by the end of the year.
