Malaysia's Social Security Organisation (PERKESO) announced today that the contribution rate for its Lindung 24 Jam Non-Employment Injury Scheme will gradually increase from the current 0.75% to 1.25% by the sixth year of implementation [1, 2, 3]. The scheme's income replacement benefit for injured workers will also rise from 48% to 80% by that time, aligning closer to its original design targets [1, 2, 3].

The scheme was first discussed at Cabinet and ministry levels starting in 2017 and employers have been notified well in advance of the changes [1, 2, 3]. PERKESO deputy chief executive Edmund Cheong Peck Huang explained, "So, that's why we went to 0.75 per cent. We will increase it back to 1.25 per cent in the sixth year and the benefits will also increase. Meaning that now it is 48 per cent, and in the sixth year it will become 80 per cent income replacement" [2].

The original contribution rate of 1.25% was based on PERKESO’s benefits structure, which aimed to provide between 80% and 90% income replacement when fully implemented [1, 2, 3]. For example, an individual earning RM6,000 monthly who becomes totally and permanently disabled could receive about RM4,800 per month under the scheme [1, 2, 3].

The gradual increase starting at 0.75% was decided after careful studies and consultations, reflecting a suitable starting point as advised by the ministry and Cabinet [1, 2, 3]. To improve transparency, the breakdown of contributions will be detailed separately on workers’ salary slips. This aims to help employees understand protection levels under each PERKESO scheme, including Employment Injury, Invalidity, Employment Insurance, and Lindung 24 Jam [1, 2, 3].

PERKESO also cautioned employees against relying solely on medical cards or personal accident insurance, which may only cover short-term costs. Instead, workers are advised to evaluate their current protection carefully before opting out, as Lindung 24 Jam provides longer-term income support for serious injuries [1, 2, 3].

The contributions increase and enhanced benefits will be implemented gradually leading up to the sixth year as part of PERKESO’s ongoing efforts to improve social security coverage for Malaysian workers [1, 2, 3].