Extension of Invalidity Scheme Coverage to Foreign Workers
SOCSO has announced the extension of invalidity scheme coverage to foreign workers, effective from July 1, 2024. Previously, foreign workers were covered under the Employment Injury Scheme (Category 2).
With the extension, the contribution rate for foreign workers will be the same as the local employees' rate: Employment Injury Scheme and Invalidity (Category 1) for those under 60 years old, and Employment Injury Scheme (Category 2) for those over 60 years old.
What do I need to change if my foreign workers are affected?
1. Always ensure the checkbox for “Is Foreigner” is selected under the employee profile. On the same page, proceed to Statutory Requirements and locate SOCSO settings. Do remember to click on Save after making the changes
What if I have multiple employees that needs to be edited at once?
1. Use batch edit to ensure and update the employee status as a foreign employee by selecting “Is Foreigner”. Do remember to click on Update then Save after making the changes.
Payroll> Employee Maintenance > Batch Edit > Select: Is Foreigner
Payroll> Employee Maintenance > Batch Edit > Select: SOCSO Category
Which category should I select for my foreign workers?
Scenario 1: Foreign Workers who have previously contributed to the PERKESO scheme and under the age of 60.
Required to select Category 1.
Scenario 2: Foreign Workers who have reached the age of 55 and never contributed to the PERKESO scheme before or have already reached the age of 60.
Required to select Category 2.
What other changes are required?
There are no other changes in the system, users may proceed with the payroll process as usual. There are no changes on reports or electronic payments; all practices remain the same as the local employees.
