SOCSO Contribution Rates 2026: Lindung 24/7 Coverage and Key Changes Under the Employees’ Social Security (Amendment) Act 2026

⚡KEY TAKEAWAYS

• The Employees’ Social Security (Amendment) Act 2026 (Akta Keselamatan Sosial Pekerja (Pindaan) 2026) was gazetted on 5 March 2026
• It introduces Lindung 24/7 (Skim Kemalangan Bukan Bencana Kerja) — extending SOCSO coverage to non-work accidents, 24 hours a day, 7 days a week
• 9.6 million active SOCSO contributors are automatically enrolled — no separate registration needed
• The additional premium is employee-borne — employers do not pay extra, but must update payroll deductions once rates are gazetted
• Implementation is targeted for Q3 2026, in phases
• SMEs using manual payroll must update contribution tables when new rates are officially published
  

IN SHORT: The Employees’ Social Security (Amendment) Act 2026 introduces Lindung 24/7 — a new PERKESO scheme that extends SOCSO coverage to non-work-related accidents 24 hours a day, 7 days a week. The additional premium is borne entirely by employees. Employers must update payroll deductions once new contribution rates are gazetted, with implementation targeted for Q3 2026.

What Is the Employees’ Social Security (Amendment) Act 2026?

The Employees’ Social Security (Amendment) Act 2026 — in Malay, Akta Keselamatan Sosial Pekerja (Pindaan) 2026 — amends Malaysia’s foundational social security legislation to expand SOCSO coverage beyond the workplace. It was gazetted on 5 March 2026 and will come into force on dates appointed by the Minister of Human Resources, with implementation targeted for Q3 2026 in phases.

SOCSO (Social Security Organisation), known in Malay as PERKESO (Pertubuhan Keselamatan Sosial), is Malaysia’s statutory body under the Ministry of Human Resources responsible for administering social security protection for private-sector employees. The two names refer to the same organisation and are used interchangeably across official communications.

For decades, SOCSO’s Employment Injury Scheme only covered accidents arising out of and in the course of employment — workplace injuries, commuting accidents, and occupational diseases. The 2026 amendment introduces a new legal category: the non-employment injury (kemalangan bukan bencana kerja), covered under the new Lindung 24/7 scheme. More than 9.6 million active SOCSO contributors across Malaysia’s formal sector are affected. You can verify official gazette notices and implementation updates at PERKESO’s official portal.

SOCSO Contribution Rates (Before & After June 2026): What Employers and Employees Actually Pay

With the introduction of Lindung 24/7, an additional contribution is expected to cover the new 24-hour non-occupational accident protection. The new rate is updated in the official gazette by PERKESO — but employers should expect a small incremental change and ensure payroll systems are ready to apply updated contribution schedules.

*Note: Approximate figures based on PERKESO’s wage-band table, under First Category. Exact contributions per RM1 wage increments are published on the Employees’ Social Security Act 1969 (Act 4).

What Is Lindung 24/7?

What exactly is Lindung 24/7, and what does the name mean?

Lindung 24/7 — officially Skim Kemalangan Bukan Bencana Kerja (Non-Employment Accident Scheme) — is PERKESO’s new round-the-clock protection scheme for Malaysian workers. The name is straightforward: lindung means protection, and 24/7 means every hour of every day. It extends SOCSO coverage to accidents that happen outside of working hours — a protection that simply did not exist before this amendment.

What is the difference between the SOCSO Employment Injury Scheme and Lindung 24/7?

These are two distinct but complementary layers of protection, both administered by PERKESO with equivalent benefits. The Employment Injury Scheme covers accidents that arise directly out of and in the course of employment — workplace injuries, commuting accidents, and occupational diseases. Lindung 24/7 fills the gap by covering non-employment injuries: accidents that happen when an employee is completely off the clock. If a worker sprains their ankle at the office, the Employment Injury Scheme applies. If that same worker falls at home on a Sunday, Lindung 24/7 applies. Together, the two schemes now provide seamless protection across every hour of an employee’s life.

What accidents and injuries are covered under Lindung 24/7?

Under Lindung 24/7, employees are protected against kemalangan bukan bencana kerja (non-employment accidents) — including slips and falls at home or in public spaces, road accidents during off-duty hours, and injuries at shopping malls, markets, or recreational areas. Any accidents that occur outside the scope of work and commuting now falls within this coverage.

Before vs. After: What Changed

What benefits are available under Lindung 24/7?

What Does This Mean for Employers?

Is Lindung 24/7 compulsory for all employers?

Yes — there is no opt-out provision. All employers currently required to contribute to SOCSO under the Employees’ Social Security Act 1969 are automatically subject to the 2026 amendment. If your business is already registered with PERKESO, Lindung 24/7 applies to you and your employees when it comes into force.

Who pays for the Lindung 24/7 contribution — employer or employee?

The additional caruman SOCSO for Lindung 24/7 is borne entirely by employees. As an employer, your direct cost does not increase. However, your compliance obligations remain unchanged — you are still responsible for deducting the updated contribution amount from each employee’s wages and remitting it to PERKESO via the ASSIST portal on time. The deduction obligation shifts; the financial burden does not fall on you.

How much extra will SOCSO deduct under Lindung 24/7?

Contributions are fully funded by employees and will be introduced in phases. The contribution rates are as follows: 

• Phase 1 (2026–2027): 0.75%
• Phase 2 (2028–2030): 1.00%
• Phase 3 (2031 onwards): 1.25%
  

SOCSO Contribution Comparison (Under 60 Years Old)

Does Lindung 24/7 cover foreign workers in Malaysia?

Foreign workers who are already contributing to SOCSO under existing legislation may be covered under Lindung 24/7. Coverage under SOCSO generally applies to employees regardless of nationality. Employers with a mixed workforce of local and foreign staff should confirm coverage specifics with PERKESO directly as the implementation gazette is finalised.

Employer Compliance Checklist: What to Do Before Q3 2026

1. Audit your payroll system — confirm whether your software auto-updates statutory tables or requires manual input
2. Update SOCSO contribution configurations to take effect starting from the June 2026 payroll. 
3. Communicate with employees — brief your team on what Lindung 24/7 means and why their SOCSO deduction will change slightly
4. Review your payslip template — ensure updated deduction line items are clearly labelled
5. Check remittance deadlines — PERKESO contributions are due by the 15th of the following month; build in buffer during the transition period
6. Retain documentation — keep records of updated payroll runs as audit evidence

What happens if my company doesn’t update SOCSO contributions correctly?

Incorrect contributions — whether under-deduction or late remittance — can result in financial penalties under the Employees’ Social Security Act. Discrepancies discovered during a PERKESO audit may trigger back-payment demands, compounding interest on unpaid amounts, and in serious cases, legal proceedings against the employer. For SMEs without dedicated payroll teams, the transition to new Lindung 24/7 rates is a high-risk window if payroll processes are not properly set up.

What Does This Mean for Employees?

For employees, Lindung 24/7 is straightforwardly positive — significantly broader protection for a modest increase in personal SOCSO deduction.

Do I need to register separately for Lindung 24/7?

No. All employees currently registered under SOCSO are automatically enrolled in Lindung 24/7 when the scheme comes into force. There is no separate registration process, no additional forms to submit, and no action required from the employee. Coverage is seamless and immediate upon implementation.

The slight increase in potongan gaji (salary deduction) for the Lindung 24/7 premium will appear as an updated line item on payslips once the new rates are gazetted. PERKESO’s phased rollout approach gives employees time to adjust. The practical benefit is immediate and significant: your SOCSO protection no longer stops when you clock out. Whether it is a late-night accident, a weekend injury, or a fall at home — the protection follows you, every hour of every day.

Why SMEs and Startups Need to Act Now

Small businesses and startups carry a disproportionate compliance burden compared to large corporations. Without dedicated HR or payroll teams, most SMEs manage caruman berkanun (statutory contributions) manually or through basic tools — leaving enormous room for error during a regulatory transition like this.

Missing the updated contribution tables means every payslip processed after the gazette date carries incorrect deductions — a compliance error on record. Late remittance to PERKESO carries financial penalties, and transition periods are historically high-risk for processing delays. 

Without transparent, itemised payslips showing the updated SOCSO deduction, employees may question changes to their take-home pay, creating internal disputes that are difficult to resolve without proper documentation. And if a PERKESO audit surfaces inconsistent deduction histories, SMEs with incomplete records face the highest exposure.

The phase-in period before Q3 2026 is your preparation window. Use it.

How PeopleX Payroll Keeps Your Business Compliant with Lindung 24/7

How can PeopleX help my business manage the new SOCSO changes?

PeopleX is built precisely for Malaysian SMEs, small business owners, and startups navigating statutory compliance. PeopleX is a Malaysia-based payroll and HR technology company serving businesses of all sizes — from 1-person startups to big corporate organisations.

Built for compliance. PeopleX monitors and applies the latest EPF, SOCSO (including Lindung 24/7 caruman rates once gazetted), EIS, and LHDN rates — so you never need to manually track gazette publications or update spreadsheets.

Managed payroll expertise. PeopleX’s managed payroll service puts a team of compliance professionals in charge of calculation, deduction, and remittance. The risk of errors during the Lindung 24/7 transition is removed from your plate entirely.

Transparent, itemised payslips. Employees receive digital payslips that clearly show each potongan (deduction) — including the updated SOCSO line under Lindung 24/7 — eliminating confusion and internal disputes before they start.

Onboarding within 48 hours. Whether you have 5 employees or 500, PeopleX can onboard your business rapidly, giving you time to get fully compliant well before the Q3 2026 rollout.

PDPA-aligned data security. All payroll data is stored on a cloud-based platform aligned to Malaysia’s Personal Data Protection Act.

Integrated HR tools. Beyond payroll, PeopleX’s HR system software covers leave management, attendance tracking with geolocation and geofencing, and AI-powered digital claims — a single platform to manage your people.

Still managing payroll manually and worried about staying compliant? Read our guide on payroll outsourcing for small businesses in Malaysia