SOCSO Contribution Rates 2026: Lindung 24 Jam Compliance Guide

⚡KEY TAKEAWAYS

IN SHORT: Lindung 24 Jam extends SOCSO protection to accidents outside working hours, 24/7. Live since 1 June 2026, it is now voluntary for Malaysian workers and mandatory for foreign workers. Contributions are borne entirely by employees, deducted and remitted by employers. Local workers who opt out must submit a liability release certificate through their employer’s HR.

What Is Lindung 24 Jam and When Did It Start?

Lindung 24 Jam — officially the Skim Kemalangan Bukan Bencana Kerja (Non-Employment Injury Scheme) — is PERKESO’s round-the-clock protection scheme. It was introduced through the Employees’ Social Security (Amendment) Act 2026 (Act A1788) — which received Royal Assent on 23 February 2026 and was gazetted on 5 March 2026 — amending the Employees’ Social Security Act 1969 (Act 4) to extend SOCSO coverage beyond the workplace. The scheme came into force on 1 June 2026 and covers non-employment injuries: accidents that happen outside the scope of work and commuting.

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. Lindung 24 Jam closes that gap. A “non-employment injury” is defined as a personal injury caused by an accident not arising out of and in the course of employment (excluding the circumstances specified in section 96B).

Following a Cabinet decision announced on 8 July 2026 – with the Human Resources Minister confirming details the next day, the scheme is now voluntary for local workers and mandatory for foreign workers. You can verify official notices and guidelines on PERKESO’s Lindung 24 Jam portal.

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

With Lindung 24 Jam, an additional employee-borne contribution applies for the new 24-hour non-occupational accident protection. Contribution schedules are published in the official gazette by PERKESO — employers should expect a small incremental change and ensure payroll systems apply the updated schedules. For contributing local workers and all foreign workers, the illustrative figures below apply.

*Note: The table above shows selected wage bands for illustration only, based on PERKESO’s wage-band table under the First Category — it is not the full contribution schedule. For the complete table covering every wage band per RM100 increment, refer to PERKESO’s official New Contribution Rate Including SKBBK (PDF). For local workers who opt out, no Lindung 24 Jam deduction applies

What Is Lindung 24 Jam?

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

Lindung 24 Jam — officially Skim Kemalangan Bukan Bencana Kerja (Non-Employment Injury Scheme) — is PERKESO’s new round-the-clock protection scheme for workers in Malaysia. The name is straightforward: lindung means protection, and 24 jam means 24 hours. It extends SOCSO coverage to accidents that happen outside working hours — a protection that simply did not exist before.

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

These are two distinct but complementary layers of protection, both administered by PERKESO. 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 Jam 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 Jam applies — provided they are contributing to it.

What accidents and injuries are covered under Lindung 24 Jam?

Contributing 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. Accidents outside the scope of work and commuting now fall within this coverage.

Before vs. After: What Changed

What benefits are available under Lindung 24 Jam?

What’s Not Covered Under Lindung 24 Jam

The scheme does not cover:

• Accidents occurring outside Malaysia
• Foreign insured persons who misuse valid immigration passes/permits or breach entry conditions under the Immigration Act 1959/63
• Self-employment injuries (covered separately under Act 789)
• Domestic worker injuries (covered under Act 838)
• Conditions caused by illness — e.g. diabetes, fever, high blood pressure
  

What Does This Mean for Employers?

Is Lindung 24 Jam compulsory for all employers?

No — not anymore. As of 9 July 2026, contributions are voluntary for Malaysian workers, following a Cabinet decision that took public feedback into account. Local employees can choose whether to contribute based on their own circumstances. The scheme remains mandatory for foreign workers under existing legal provisions.

How do employees opt out of Lindung 24 Jam?

Local workers who choose not to contribute must complete a liability release certificate (perakuan pelepasan liabiliti), a form downloadable online from 14 July 2026. Because contributions are paid through the employer, workers must also inform their employer’s HR department of the decision. Those who complete the certificate are exempted from contributing for July. The certificate also protects both the employer and SOCSO from liability: if an accident, injury, or death occurs outside working hours after an employee opts out, no benefit is payable.

Can an employee rejoin after opting out?

Yes. Employees who opt out can rejoin the scheme at any time. SOCSO has encouraged workers to keep contributing at the entry rate of 0.75% to stay protected against off-duty accidents.

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

The additional caruman SOCSO for Lindung 24 Jam is borne entirely by employees. As an employer, your direct cost does not increase. Your role is to deduct the correct amount from each contributing employee’s wages and remit it to PERKESO via the ASSIST portal on time — while correctly excluding local employees who have opted out.

What does the voluntary change mean for employer administration?

Because participation is now voluntary for locals, the employer’s job shifts from blanket deduction to administration and record-keeping. You should:

1. Collect and file liability release certificates from employees who opt out, and keep them as your liability record
2. Update payroll to stop deductions for opted-out locals and maintain mandatory deductions for foreign workers
3. Track mid-year rejoins, since employees can opt back in at any time
4. Continue remitting via the ASSIST portal by the 15th of the following month for all contributing employees
5. Communicate the voluntary choice clearly so employees make an informed decision

How much extra will SOCSO deduct under Lindung 24 Jam?

For contributing employees, the premium is fully employee-funded and introduced in phases:

• Phase 1 (first two years): 0.75%
• Phase 2 (next three years): 1.00%
• Phase 3 (sixth year onwards): 1.25%

Does Lindung 24 Jam cover foreign workers?

Yes — and for foreign workers it is mandatory. Contributions for foreign workers remain compulsory under existing legal provisions and are not subject to the opt-out available to local employees. Employers with a mixed workforce must keep foreign-worker contributions running even where local staff have opted out.

Employer Compliance Checklist

1. Audit your payroll system — confirm whether your software auto-updates statutory tables or requires manual input
2. Configure Lindung 24 Jam deductions — mandatory for foreign workers; applied to local workers who have not opted out (effective from the 1 June 2026 payroll)
3. Set up an opt-out process — distribute and collect liability release certificates and record each choice
4. Communicate with employees — brief your team on what Lindung 24 Jam means and that participation is their choice
5. Review your payslip template — ensure the SOCSO / Lindung 24 Jam deduction line is clearly labelled
6. Check remittance deadlines — PERKESO contributions are due by the 15th of the following month
7. Retain documentation — keep certificates and updated payroll runs as audit evidence

What happens if my company doesn’t handle Lindung 24 Jam contributions correctly?

Incorrect contributions — whether under-deduction, deducting from someone who opted out, missing a mandatory foreign-worker contribution, 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. For SMEs without dedicated payroll teams, the mix of voluntary local opt-outs and mandatory foreign-worker contributions is a genuinely error-prone window if payroll processes are not properly set up.

What Does This Mean for Employees?

For employees, Lindung 24 Jam offers significantly broader protection for a modest personal SOCSO deduction — and, for local workers, it is now a choice.

Do I need to register separately for Lindung 24 Jam?

No. Existing SOCSO contributors were automatically enrolled when the scheme took effect on 1 June 2026 — no separate registration is required. Local employees who prefer not to participate simply complete the liability release certificate through their employer’s HR (available from 14 July 2026). Foreign workers remain covered automatically and cannot opt out.

Should I stay in the scheme?

That’s a personal decision. Staying in means your SOCSO protection no longer stops when you clock out — a late-night accident, a weekend injury, or a fall at home is covered, for a deduction starting at 0.75% of wages. The potongan gaji (salary deduction) appears as a clearly labelled line on your payslip. If you opt out and later change your mind, you can rejoin at any time.

Lindung 24 Jam by the Numbers

Since launch, uptake and payouts have been substantial:

• 207,000 employers and 2.27 million workers registered (1.92 million local, 307,000 foreign) as of 9 July 2026
• RM58 million in accumulated contributions
• 1,056 claims received, averaging ~27 per day, with almost RM2 million disbursed
• SOCSO will conduct an actuarial review and table sustainability findings to the government by year-end, now that local participation is voluntary

Why SMEs and Startups Need to Get This Right

The voluntary change makes payroll more complex, not less. Instead of applying one flat deduction, SMEs now have to track who has opted out, who is still in, who has rejoined, and which workers are foreign (and therefore mandatory) — all while keeping remittances accurate and on time.

Without dedicated HR or payroll teams, most SMEs manage caruman berkanun (statutory contributions) manually or through basic tools, leaving room for error. Deducting from an employee who has opted out, or missing a mandatory foreign-worker contribution, both create compliance problems. Late remittance carries penalties. And without transparent, itemised payslips, employees may question changes to their take-home pay — creating internal disputes that are hard to resolve without proper documentation. If a PERKESO audit surfaces inconsistent deduction or certificate records, SMEs with incomplete records face the highest exposure.

How PeopleX Payroll Keeps Your Business Compliant with Lindung 24 Jam

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 large corporate organisations.

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

Opt-out and rejoin tracking. PeopleX helps you record which local employees have opted out, keep mandatory foreign-worker contributions running, and handle mid-year rejoins — the exact administration the voluntary change creates.

Managed payroll expertise. PeopleX’s managed payroll service puts a team of compliance professionals in charge of calculation, deduction, and remittance, removing the risk of errors from your plate entirely.

Transparent, itemised payslips. Employees receive digital payslips that clearly show each potongan (deduction) — including the SOCSO line under Lindung 24 Jam — 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 so you get fully compliant fast.

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.