STATUTORY BENEFITS WE SHOULD BE PROACTIVE

Dato Seri Dr T Devaraj Penang Hospice Society

 Employees have to be protected by social insurance to reduce their suffering and to provide financial guarantees and protection to the family as a whole SOCSO set up in 1971 to implement, administer, enforce Employees Social Security Act 1969 Employees Security (General) Regulations 1971

SOCIAL SECURITY ORGANISATION (SOCSO)

EMPLOYER who employs one or more employees register and contribute monthly from first month EMPLOYEE a person employed by an employer Malaysian citizens or Permanent Residents earning less than RM3000 monthly earning more can be covered once in always in employee must register and contribute employee identified by IC number

EMPLOYERS LIABILITY EMPLOYEE

Government employees Domestic servants Self-employed persons Foreign workers Business owner and spouses of soleproprietorship or partnership

EMPLOYEES EXEMPTED FROM SOCSOS COVERAGE

First Category (Employment Injury Scheme and Invalidity Pension Scheme) all employees below 55 years of age contributions by employer and employee Second Category (Employment Injury Scheme Only) for employees above 55 years for employees above 50 years of age when first registered for this category only employer makes contribution CONTRIBUTIONS employer / employee ratio @ 3:1

TYPES AND CATEGORIES OF CONTRIBUTIONS

All remuneration payable to an employee salary overtime payment commission payments for leave such as annual, sick, maternity allowances such as incentive, good behavior, COLA

DEFINITION OF WAGES

employment injury means personal injury caused by an accident or an occupational disease arising from work accidents in course of work accidents while travelling accidents during an emergency occupational disease eg hearing loss, industrial asthma

BENEFITS Medical benefit, temporary disablement benefit, permanent disablement benefit, constant attendance allowance, dependents benefit, funeral benefit, rehabilitation benefit, education benefit

EMPLOYMENT INJURY INSURANCE SCHEME

a serious disablement or morbid condition of a permanent nature that is either incurable or not likely to be cured, as a result of which an employee is unable to earn at least 1/3 of what a normal able person could earn BENEFITS invalidity pension, invalidity grant, constant attendance allowance, survivors pension, funeral benefit, rehabilitation benefit, education benefit

INVALIDITY PENSION SCHEME

 Provides 24 hour coverage to an employee against invalidity due to any cause not connected with his employment Chronic ailments or diseases e.g. heart attack, renal failure, cancer, mental illness, chronic asthma Paid as long as invalid or dies If dies pension converted to survivors pension (dependents of employee)

INVALIDITY PENSION

 Not completed age 55 when notice received by SOCSO If completed age 55 has to provide proof that his invalidity occurred before age 55 and he had ceased employment at that time Is certified as an invalid by Medical Board or Appellate Medical Board Has fulfilled the qualifying contribution conditions - minimum 2 years + covered for an additional 2 times the earlier period QUANTUM PENSION from 50 65 % monthly wage with a minimum of RM250 monthly INVALIDITY GRANT employees contributions plus interest as a lump sum MAKING CLAIM submit notice of invalidity(PKS(F) 4, medical report, copy IC

I P CONDITIONS FOR ELIGIBILITY

1. Peter begins work on 1.1.90 and contributes to SOCSO. In mid 1991 he becomes invalid as a result of cancer. As less than 24 monthly contribution have been received by SOCSO he does not qualify. 2. Ahmad begins work on 1.1.90 and contributes to SOCSO. In mid 1992 he becomes invalid as a result of cancer. As more than 24 monthly contributions have been received by SOCSO he qualifies. 3. Ah Chai begins work on 1.1.90 and contributes to SOCSO till 31.12.92 (Total of 3 years). After that he goes into business and no longer contributes to SOCSO. In mid 1997 he becomes invalid as a result of cancer. He qualifies as contributed for 3 years + covered for a further 6 years i.e. till 31.12.98

SOME EXAMPLES

 pension payable to dependents widow/widower/children or parents/brothers & sisters or grandparents rate is same or 50 - 65% of average monthly wage minimum monthly pension of RM250

SURVIVORS PENSION

 permanent total disablement when constant care from another person needed approved by Medical Board or Appellate Medical Board 40% of the Invalidity Pension rate to a maximum of RM500 monthly

Physical Rehabilitation Physiotherapy reconstructive surgery supply, repair, replace orthotic equipment dialysis

occupational therapy artificial limb, dentures return to work program

Vocational Rehabilitation training in courses e.g. electrical wiring, tailoring, typing all expenses incurred will be borne by SOCSO

REHABILITATION BENEFIT

Funeral RM1500 to next of kin or person who incurred funeral expenditure Education Benefit dependent children of employee on Invalidity Pension or Survivors Pension may apply

FURTHER BENEFITS

 Cik A, 39 yrs, worked in factory, had breast cancer, RM1000 Encik B, 53 yrs, worked statutory body, died cancer kidney. Wife getting pension RM1000. Daughter getting help for college fees. Puan C, 53 yrs, factory worker, Guillain- Barre Syndrome, pension RM400, supplied with hospital bed, wheel chair, pampers Cik D, worked in factory, Ca breast, RM 1000 , wheelchair, pampers

SOME EXAMPLES IN HHP

1. Employee must initiate claim with forms from SOCSO 2. He/she has to see a doctor who will prepare medical report - at Hospital PP it will be ready within a month - fee for report RM 40 3. SOCSO will then arrange for Medical Board / Appellate Board 4. If approved locally benefit 2 weeks / 4-6 weeks for invalidity pension as approved in KL 5. To apply for prosthesis / orthotic aids same time or as need arises 6. Constant attendance allowance further medical report/ M Board

PROCESS FOR MAKING CLAIM

Employee unaware or not aware of all the benefits did not apply or delays in application failures in contribution by employer Doctor delays in advising SOCSO or giving report not fully aware of all the benefits e.g. pampers, stoma bags, catheters, nutritional aids grey area when patients needs change with time SOCSO is it only reactive or also proactive ? Hospice staff /volunteers unaware and do not ask patient

FAILURE TO GET BENEFITS

 Is the patient less than 55 years old? Yes/No Was the patient ever employed in private sector Yes / No If the answer to both questions is yes then the patient should make a claim at the SOCSO office for invalidity pension

NB. If the patient was employed in the private sector and died before the age of 55 the family should make a claim at the SOCSO office for survivors pension

Questions to Ask

 SOCSO benefits only apply before age of 55 years

For that one must fall ill or die before age 55 years An employee who gets say cancer when over the age of 55 and becomes invalid will not be entitled to make any claims from SOCSO This ruling applies even though an employee has contributed for years. Is this fair? NB. Claim can be considered if cancer began before 55 yrs and employee stopped working at 55 and then cancer relapsed a few years later. Does not apply say to DM if organ failure after age 55. Employees sick leave limited unlike Government servants (up to 2 yrs) so if procedures delayed have no sick leave and no benefits

A QUESTION FOR SOCIETY

CREDIT IN EPF divided into sub accounts and can be withdrawn as per regulations ADDITIONAL BENEFITS Incapacitation physical or mental - RM5000 Death Benefit dies before 60 yrs - RM2500 paid to dependents NB. Problems arise when a members fails to nominate a beneficiary or change it say when he gets married.

EMPOYEES PROVIDENT FUND ACT 1991

Not statutory Some state governments only Only Malaysian residents Funeral benefits ranges from RM1000 to RM2500

DEATH BENEFITS FROM STATE GOVERNMENTS