Kuala lumpur: The contribution rate for the Social Security Organisation's (PERKESO) Non-Employment Injury Scheme, or LINDUNG 24 Jam, will be increased gradually to 1.25 per cent in the sixth year, thus allowing income replacement benefits to be raised from the current 48 per cent to 80 per cent.
According to BERNAMA News Agency, PERKESO deputy chief executive (Strategic and Corporate) Edmund Cheong Peck Huang stated that the current contribution rate of 0.75 per cent was the lowest that could be implemented at the initial stage after the government instructed PERKESO to introduce the scheme in stages. He emphasized that the increase in the contribution rate considered the need to ensure that the protection benefits remained relevant, including the medical and rehabilitation benefits provided by PERKESO.
Cheong explained that the original contribution rate of 1.25 per cent was determined by considering PERKESO's benefits structure, which typically offers income replacement of between 80 and 90 per cent of a person's income. For instance, an individual earning RM6,000 might receive a monthly payment of about RM4,800 if they suffered total permanent disability.
The decision to implement the scheme gradually was made following discussions at the ministry and Cabinet levels, based on a study that found the current rate to be suitable as a starting point. Cheong highlighted that LINDUNG 24 Jam was not introduced abruptly, as the proposed scheme had been under discussion since 2017, including at the Cabinet and relevant ministry levels, with employers being informed in advance about its implementation.
Regarding the separation of contributions on salary slips, Cheong noted that the move aimed to ensure transparency and help workers understand the protection provided under each PERKESO scheme, including the Employment Injury and Invalidity Scheme, Employment Insurance Scheme, and LINDUNG 24 Jam. He advised employees to assess their existing level of protection before deciding to opt out of LINDUNG 24 Jam and cautioned against relying solely on medical cards or personal accident (PA) insurance.
Cheong explained that the coverage provided by each policy was different and not necessarily comprehensive, whereas LINDUNG 24 Jam could offer long-term income support to workers or their dependants in the event of a serious injury. He illustrated that if an individual earns RM2,000 and their PA coverage is only RM10,000, it would only last for five months, but with LINDUNG 24 Jam, in the case of a serious injury, support could be provided for the rest of their lives.