KUALA LUMPUR, Nov 1 — The Human Resources Ministry (KSM) will expand its Invalidity Scheme to foreign workers in the country to ensure they too are covered by the benefits of this scheme.
Its Minister, V. Sivakumar said, however, the matter is still being scrutinised before it comes into effect soon.
“The ministry is finalising plans to expand the Invalidity Scheme that is provided through the Employees’ Social Security Act 1969 (Act 4) so that it also covers foreign workers brought into the country.
“This is to increase the level of social protection network and provide justice to workers serving in the various sectors and industries, including foreign workers in the country,” he said.
He told reporters this after attending the Social Security Organisation (Perkeso) Lunch and Appreciation Day today.
The Invalidity Scheme protects workers from disability or death due to any cause not related to work.
Elaborating, Sivakumar said that foreign workers are currently only covered by the Employment Injury Scheme through the Employees’ Social Security Act 1969.
“Local workers are covered by the Employment Injury Scheme and Invalidity Scheme, with the employer’s contribution rate of 1.75 per cent while the employee pays 0.5 per cent.
“As for foreign workers, employers will pay 1.25 per cent while the worker need not pay anything… but with the expansion of the Invalidity Scheme later, the rate of contribution will be standardised with that of local employers and workers,” he said.
Sivakumar also urged employers of foreign domestic workers to contribute to the Perkeso scheme to enable their workers to be protected under the Employment Injury Scheme.
“Based on records, only 39.67 per cent of the 95,000 foreign domestic workers in this country are covered by the Perkeso scheme, whereas all domestic workers, including foreign workers, are required to register with and contribute to Perkeso since June 1, 2022.
“These statistics show there are a few employers in the country who still do not comply with the directive,” he said.
He said that, as of Oct 1, a total of 1.78 million active foreign workers are covered under Perkeso’s Employment Injury Scheme for Foreign Workers.
“So far, a total of 37,328 accidents involving foreign workers have been reported to Perkeso, with the total amount of social security benefits that has been paid to those insured and their next of kin reaching RM76.57 million,” he said.
Meanwhile, Sivakumar said that the ministry is still negotiating with Indonesia regarding the cost of hiring domestic helpers, which has reached RM15,000 per person.
“This matter has not been finalised… what is certain is that we are on the same track, namely to reduce that cost… meetings between the Malaysian and Indonesian officials are ongoing,” he said.
— Bernama
