Socso to proceed to increase monthly wages' ceiling contribution

PETALING JAYA: The Social Security Organisation (Socso) today said that it will go ahead with the move to increase the monthly wages' ceiling contribution as per the law.
"Socso would like to reiterate that the amendments to the Employees' Social Security Act 1969 to increase the ceiling of monthly wages for Socso contributions from RM3,000 to RM4,000 was done according to due process.
"The matter has been deliberated at length at the Board level with members comprising representatives including from employers and employees," said Chief Executive Officer Datuk Mohammed Azman Aziz Mohammed.
He added there are four representatives each from employers' associations and employees' associations in Socso's board, which include Malaysian Employers Federation (MEF) as well as one representative from Sabah and Sarawak.
"This well-balanced representation of both employers and employees in Socso's board shall fairly and effectively facilitate the board's policy decision.
"Thus, the statement by MEF Executive Director Datuk Shamsuddin Bardan that there were no discussions with stakeholders on the amendments to the Act, is unfounded.
"Socso would like to emphasise that the benefits of raising the wage ceiling for contributions and extending the social security coverage to all employees outweigh the cost that may be incurred by employers as it would further compensate and ease the burden of employers in providing cash benefits, medical, physical and vocational rehabilitation coverage for their workers," he added.
He was responding to theSun's article titled Socso sees hike in contributions (Feb 10), where Datuk Shamsuddin Bardan said the implementation has been "forced down the throat" and despite reservations employers have to comply since it is the law.
"While the social security contribution is mandatory and reviewing the Act may benefit the employees, the due process in reviewing the law was not carried out.
"There were no discussions with stakeholders and it came as a surprise to us when the amendments were tabled in Parliament," he told theSun.