My company consists of my business partner and myself. When we had salaries, we also had EPF and Socso.
Last year our company hit a roadblock and stopped having salaries and stopped EPF and Socso payments.
If you’re self employed or find yourself in a similar situation as above, you have the option of enrolling yourself in the PERKESO/ SOCSO Self-Employment Social Security Scheme.
(By the way: PERKESO = Pertubuhan Keselamatan Social = Social Security Organisation = SOCSO)
The SOCSO Self-Employment Social Security Scheme was previously only available for the Passenger Transportation Sector (ie e-Hailing drivers), but as of January 2020 it covers 19 more informal sectors.
Scroll further down to see the sectors and types of professions eligible for enrollment, and how to register SOCSO Self-Employment Social Security Scheme.
Benefits Under SOCSO Self-Employment Social Security Scheme
The benefits under SOCSO Self-employment Social Security Scheme are really good. According to the website:
This Scheme provides protection for self-employed insured persons against employment injuries including occupational diseases and accidents during work-related activities.
Self-employment injury means personal injury to self-employed insured person caused by an accident or an occupational disease arising out of and in the course of his or her self-employment activity including while travelling for the purpose of his or her self-employment activity.
Occupational disease is a disease caused by or arising from any occupation specified in the Fifth Schedule of the Employees’ Social Security Act 1969. This scheme provides cash benefits to the insured persons and their dependants besides medical treatment, physical rehabilitation and vocational training.
To break it down further, the benefits you get from SOCSO Self-employment Social Security Scheme include:
- Medical Benefit – FREE MEDICAL TREATMENT
- Temporary Disablement Benefit – Get $$$ daily if you’re on medical leave
- Permanent Disablement Benefit – Get $$$ lump sum if you get permanently disabled
- Constant Attendance Allowance – Get RM500/month if you get permanently disabled
- Dependant’s Benefit – Dependents get $$$ monthly if you kiok while working
- Funeral Benefit – Get up to RM2k for funeral costs
- Education Benefit – Your child get education loan if you kiok or permanently disabled
- Facilities for physical or vocational rehabilitation – Get free rehab (physical and vocational)
Note: the above have been simplified for easy reading. Refer to the pamphlet below for extended explanation under each benefit
I have personal insurance and one can get many of these benefits via a comprehensive insurance plan. But that takes a lot of research and you have to plan to meet a few agents so you can compare plans and work with one that cares about your wellbeing besides his commission. My insurance agent doesn’t care about me (not even a “hello” throughout the year) but the plan seems good enough to cover medical emergencies and provides me with an allowance if I’m unable to work.
By comparison, SOCSO Self-employment Social Security Scheme is so easy to enrol online – it takes about 20 minutes. You’re immediately covered right after you paid.
So if you’re a self-employed individual, and/or a sole breadwinner, do enrol in SOCSO Self-employment Social Security Scheme. It’s such an easy way to care for your family.
As quoted by SOCSO chief executive Datuk Seri Dr Mohammed Azman Aziz Mohammed,
“For instance, if the self-employed (married) chose Option 4 and paid RM592.80 for a year, and later was involved in an accident during the course of employment and passes away, his wife would get a maximum monthly pension of RM3,555 for life.
“If the contributor who passed away had a disabled child, he or she would be covered for the rest of their lives”
SOCSO Contribution Table – How much it costs
The higher your insured monthly earning, the higher your contribution per month/year. There are four plans, ranging from RM13.10 to RM49.40 contribution per month. Here is the SOCSO contribution table:
| Plan | Insured Monthly Earning | Contribution Payment Per Month | Contribution Payment Per Year |
| 1 | RM1,050 | RM13.10 | RM157.20 |
| 2 | RM1,550 | RM19.40 | RM232.80 |
| 3 | RM2,950 | RM36.90 | RM442.80 |
| 4 | RM3,950 | RM49.40 | RM592.80 |
You can take Plan 2 to take advantage of the Matching Grant subsidy by government (see further down below for subsidy info – 90%-100% subsidy)
*You can also pay monthly, in between (3 months, 11 months etc). They say they will send you a reminder before your contribution expires.
How to Register SOCSO Self-Employment Social Security Scheme
Follow these steps to register SOCSO Self-Employment Social Security Scheme:
- Register at matrix.perkeso.gov.my,
- Fill and submit a form, and
- Pay
- (Repeat payment next month/year for continuous protection)
It takes about 20 minutes with all required documents on-hand. They also have a Quick Start Guide you can refer to.
After you register, you will see the Dashboard. Click Register to view the form-filling section.
Selecting Sector and Class
In this process, you have to select your Sector and Class. Selecting Sector and Class is straightforward if your type of work is directly listed (see below section) or slightly confusing if it’s not.
For example, as I run project management services under a Sendirian Berhad (Private Limited) so my sector would be:
- ‘Online Business Sector: Service’
What if you work in 2 different sectors?
If you work in two different sectors – insurance agent by day and Grab driver by night, for example – and want to be covered under both instances, then you have to submit two forms, one for ‘Agent Sector: Insurance’ and another for ‘Passenger Transport Sector: Grab driver’.
And you have to make two contributions I’m guessing.
Here is a list of all the sectors covered under SOCSO Self-Employment Social Security Scheme, the professions (Class) and required documents. At the time of writing, self-employed individuals working in these 20 sectors are eligible for enrolment.
Sectors Covered Under SOCSO Self-Employment Social Security Scheme
#1 – Sector: Accommodation
Class:
- Homestay
- Chalet
- Motel
Required Documents: Identification Card; License / Permit From Related Agency
#2 – Sector: Agent
Class:
- Insurance
- Real estate
- Currency Changer
- Direct Selling
- Self-Employment Scheme
- Zakat Officer
- Remisier
- Product
Required Documents: Identification Letter; Agreement / Offer / Agent Card
#3 – Sector: Agriculture
Class:
- Vegetable and fruit
- Palm oil
- Rubber
- Paddy
Required Documents: Identification Card; Approval From Related Agency
#4 – Sector: Art
Class:
- Celebrities
- Singer
- Actress
- Musician
- Dancer
- Production Crew
- Handicraft
- Painter
- Photographer
- Busker
- Extra Actor
- Writer
Required Documents: Identification Card; Certificate / Registration Letter From Association
#5 – Sector: Beauty & Healthcare
Class:
- Massager
- Tradition Medicine Practitioner
- Midwife
- Makeup / Makeover Artist
Required Documents: Identification Card; Certificate / Registration Letter From Association
#6 – Sector: Construction
Class:
- Construction
- Maintenance
- Wiring
- Plumbing
- Renovation
Required Documents: Identification Card; License / Permit / Certificate From Related Agency
#7 – Sector: Data Processing
Class:
- Census / Survey
Required Documents: Identification Card; Offer Letter
#8 – Sector: Fishery
Class:
- Fishermen
- Aquaculture
Required Documents: Identification Card; License / Permit
#9 – Sector: Food
Class:
- Preparation
- Waiter
- Seller
Required Documents: Identification Card; Permit / Offer Letter
#10 – Sector: Forestry
Class:
- Harvesting Forest Product
Required Documents: Identification Card; Validation From Association / Community Leader
#11 – Sector: Goods and Foods Transport
Class:
- Car
- Motorcycle
- Lorry
- Van
- Bicycle
Required Documents: Driving License; Permit / GDL License / E-Hailing Profile
#12 – Sector: Hawker
Class:
- Market
- Stall / Kiosk
- Food Truck
Required Documents: Identification Card; License / Permit From Related Agency
#13 – Sector: Household Services
Class:
- Part Time Caregiver / Nanny
- Housekeeping
Required Documents: Identification Card; Certificate / Registration Letter From Association
#14 – Sector: Information Technology
Class:
- Website
- Mobile Application
- System Maintenance
- Network
- System Security
- Data Centre
Required Documents: Identification Card; Professional Certificate
#15 – Sector: Livestock
Class:
- Breeder
- Livestock Product
Required Documents: Identification Card; License/ permit
#16 – Sector: Manufacturing
Class:
- Wood Product
- Fabric Product
- Plastic Product
- Chemical Product
- Metal Product
- Soil Product
Required Documents: Identification Card; License / Permit From Related Agency
#17 – Sector: Online Business
Class:
- Clothes
- Food
- Cosmetic
- Medicine
- Service
- Spare Part
- Furniture
- Electric
- Electronic
Required Documents: Identification Card; SSM License
#18 – Sector: Passenger Transport
Class:
- Taxi Driver
- Grab Driver
- Hired Car Driver
- Other E-Hailing Driver
- School Bus Driver
- Factory Bus Driver
- Other Bus Driver
Required Documents: Driving License; Driver’s Card, Permission Letter, or E-Hailing Driver’s Profile Screenshot
#19 – Sector: Professional Services
Class:
- Lawyer
- Accountant
- Auditor
- Tax Consultant
- Architect
- Engineer
- Research and Development
- Designer
- Veterinary
- Pharmacist
- Psychiatrist
- Dentist
Required Documents: Identification Card; Professional Certificate
#20 – Sector: Support Services
Class:
- Tour Guide
- Mountain Guide
- Tutor
- Maintenance
- Coach
- Owner of business sole proprietor or partnership
- Digital Economy Services
Required Documents: Identification Card; Certificate / License From Related Agency / SSM / Application Profile
How to register SOCSO Self-Employment Social Security Scheme for 90% of 100% off
As of May 2023, those eligible can register for SOCSO Self-Employment Social Security Scheme can get a subsidy. They have 2 schemes:
- SPS Padanan Caruman or Matching Grant – You pay 10% (RM 23.30), Government pays 90% (RM232.80)
- SPS Madani – Government pays 100%
There are limited number of allocation under each assistance, so see if you’re eligible and if yes, quickly sign up for it!
Eligibility for SPS Padanan Caruman or Matching Grant (90% off)
You get a 90% subsidy from the SOCSO Self-Employment Social Security Scheme and only pay RM 23.30 FOR ONE WHOLE YEAR OF PROTECTION if you are:
- Self-employed person who does work under the agriculture sector including plantations to earn a living
- Orang Asli ethnic groups in Peninsular, Orang Asal ethnic Sabah & Sarawak who are self-employed to earn a living
- Self-employed person who works as an educator, industrial training students, instructor, tutor, religious instructor, counselor, motivational specialist
- Self-employed person who uses digital applications under Service Platform Provider (SPP) to provide services to customers. Examples of digital applications are passenger transport applications, delivery of goods or food, holiday rentals, etc (this should include ehailing drivers/ riders, AirBnB hosts etc)
- Self-employed person who does the work in the hawker sector to earn a living
- Self-employed person who does the work under the fishery sector including aquaculture to earn a living
- People with Disabilities (OKU) who are self-employed to earn a living and owned an OKU Card
- Self-employed person who does the work in the art sector to earn a living.
- Household Services Sector, Professional Services Sector, Accommodation Premises, Data Processing, Mountain Guides, Tourist Guides, All Volunteers, contract for service (non-executive), Security Officers, Information Technology, Support Services Sector – Registered Sole Proprietorship with SSM.
- All Malaysian sports including traditional sports, e-sports, coaches, professional level sportsmen, students under the sponsorship of MSN, SILAT athletics.
- Self-employed person with gender “Perempuan” as stated in the National Malaysia Identity Card (MyKad or MyPR).
Eligibility for SPS Madani (100% off)
You get 100% subsidised from SOCSO Self-Employment Social Security Scheme if you are:
- Employees with contract status under Contract for Services. Only applicable for Public servants. The SPS application coverage under the program can only be made through the respective agencies.
- Self-employed person who works as supervisors & rehabilitation workers in the community. The SPS application coverage under the program can only be made through the respective agencies.
- Religious Affiliation which is administered by JAKIM for the category of imam, bilal, guru takmir, noja, siak and merbut. The SPS application coverage under the program can only be made through JAKIM.
- Self-employed person who are uniform volunteers under Malaysian Armed Forces, Malaysia Civil Defense Force, Royal Malaysia Police, Malaysian Maritime Agency, Malaysian Volunteer Corps Department, Fire and Rescue and KKM Volunteer.
Where and how to apply SOCSO initiatives
So how do you register for SOCSO initiatives and where can you find more info? Go to matrix.perkeso.gov.my and click on the SKSPS Budget Initiative 2024 button.
Would you enrol in the SOCSO Self-Employment Social Security Scheme?
Are you self-employed? What are your thoughts on it? Would you enrol yourself in this scheme or there are better options out there? I think its a shame if you don’t take advantage of it, especially if you can get it for 90% or 100% subsidised!
How about claiming? Have any of you tried it? How was it? Easy or hard? Share your thoughts and experience in the comments section below. If this article was useful, please share it, thanks!
Registration link so you don’t have to scroll all the way up: matrix.perkeso.gov.my
If you are a woman, you may also enroll for the Housewives’ Social Security Scheme, also under SOCSO/PERKESO. You do NOT have to be a full-time housewife to benefit from this.
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