my uncle is the owner of a company, no problem paying sosco for all his staff

he himself have director salary, i think it's more than 5k,

recently perkeso come check the company and said my uncle didnot carum sosco for himself, the owner.

said new rule since 2016 and my uncle need to pays up the caruman dated back to 2016.

said if there's any disastifaction can appeal later after paid.

so he follow and paid the outdated caruman, but then he receive another letter said also need to pay up the late payment/penalty, which is quite alot. and need to do it in 15 days, else face up the consequence.

sorry this dont sound reasonable and logical at all from employer pov, is this case valid?

This post has been edited by leelazens: May 8 2019, 09:33 PM

according to this...
the law stated every company have to contribute for all employees' SOCSO. It is stated in section 5 Employees' Social Security Act 1969.
http://www.mylabourlaw.net/forums/27899-so...or-director.php

and the company is paying the wages of the business owner right?
if yes, then is the business owner indirectly became the employee of the company?

Who is classified as an employee under the Employees’ Social Security Act, 1969?
An employee is any person who is employed for wages paid under a contract of service or ap..........
https://www.nbc.com.my/socso/socso-frequent...tions-faqs.html

This is strange. I can recalled 2 well known conditions regarding who qualify under socso, a) once in, always in and b) wages under 3k.

And the rules are still there... as listed in their website, as posted in above post.

-----

Edit: the link in above post is not perkeso website... and may not be up to date. Check out perkeso site for latest act, rate of contributions, and compound fines.

I think your uncle should have sought clarification on the matter before accepting that he himself is eligible for socso. Once acknowledge that he is eligible, then compound fines for late contributions and/or late registration is inevitable.



This post has been edited by j.passing.by: May 9 2019, 06:46 AM

I think the 3k is the ceiling amount they used to compute the contribution rate.....
btw, now it is 4k

"Monthly contribution is subject to the ceiling of the insured wage of RM4,000.00 per month."

rate of contribution
https://www.perkeso.gov.my/index.php/en/soc...f-contributions


Contributions
Coverage of the Workers Social Security Act 1969
Employers are required to pay monthly contributions for each eligible employee according to the rate specified under the Employees’ Social Security Act, 1969.
These contributions are divided into two (2) types, namely:

Contributions of the First Category
For employees who are less than 60 years of age, contributions payable by employers and employees are for the Employment Injury Scheme and the Invalidity Scheme.

The rate of contribution under this category comprises 1.75% of employer’s share and 0.5% of employees’ monthly wages according to the contribution schedule.

Note: All employees who have not reached the age of 60, must contribute under the First Category except for those who have attained 55 years of age and have no prior contributions before they reach 55 due to non-eligibility under the Employees’ Social Security Act, 1969.

Contributions of the Second Category
The rate of contribution under this category is 1.25% of employees’ monthly wages, payable by the employer, based on the contribution schedule. All employees who have reached the age of 60 must be covered under this category for the Employment Injury Scheme only.
https://www.perkeso.gov.my/index.php/en/soc...y/contributions

Employees exempted from the coverage of the Employees’ Social Security Act, 1969 are as follows:
Federal and State Government permanent employees
Domestic servants
Self-employed
Spouses of a sole proprietor or a partnership owner

.......(Employees’ Social Security Act,1969 and Employees’ Social Security (General) Regulations, 1971 are applicable to all industries having one or more employees.)

leelazens
please do ask your uncle to check about this too ....
Coverage of the Employment Insurance System Act 2017

General
The Employment Insurance System Act 2017 was introduced and came into force on 1 January 2018.
https://www.perkeso.gov.my/index.php/en/soc...y/contributions

This post has been edited by yklooi: May 9 2019, 09:57 AM

The 3k is a cut-off point... if the starting pay (1st job) is above 3k, then you are out of socso but can opt in. Years ago, it was lower... either 2k or 2.5k.

If 3k and below, you are eligible and must registered into socso... and 'once in always in', so when later salary increased to above 3k, you cannot opt out of socso and must continue to contribute to socso; unless if you later join the civil service or self-employed or falls within some other criteria that is outside the scope of socso.

The 4k is a cap on the rate of contribution each month, so even if you are way above 4k, the monthly contribution is fixed at the 4k rate.

Previously, SOCSO was only mandatory for employees who were earning less than RM3,000 a month.
Employees who were earning more than RM3,000 a month could “opt in” to SOCSO.

Under the new Employees’ Social Security (Amendment) Act 2016, effective 1 June 2016, SOCSO contributions are now mandatory for all employees regardless of their salary.
However, if the employee’s salary exceeds RM4,000 a month, his salary for the purposes of calculation SOCSO contributions will be deemed to be only RM4,000 a month.

https://dnh.com.my/changes-to-malaysian-emp...d-minimum-wage/

Those were some great advice's.

Pretty sure i pay 2~300 for perkeso every year.

Didnt remember my HR asking me if I wanted to opt in.

No wonder perkeso is now so rich.

Yes, was browsing through its site and it was silent on the previously 3k cut off point...

B. Employees

It is compulsory for all eligible employees who are Malaysian citizens and permanent residents to register.


Employee’s Eligibility
All employees who are employed under a contract of service or apprenticeship in the private sector and contractual / temporary staff of Federal / State Government as well as Federal / State Statutory Bodies need to be registered and covered by SOCSO. The rate of contribution is capped at monthly wage ceiling of RM4,000.00.

How come I don't notice any big hooha on the new rule? Was there any protest?