SOCSO to exempt late payment fees for employers who register between 1 March to 30 June 2021

This exemption applies to registration under both the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).

Malaysia's Social Security Organization (SOCSO) has announced that it will exempt the Late Payment Contribution Benefit (FCLB) to employers who have not registered with SOCSO, but registered between 1 March to 30 June 2021.

This exemption applies to registration under both the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800), Dato’ Sri Dr. Mohammed Azman Bin Dato’ Aziz Mohammed, Chief Executive of SOCSO, said in a statement last week. For employers who have passed the period, a discount will be given to the compound imposed.

He said: "These two incentives are an appreciation from SOCSO in conjunction with the organisation's Golden Jubilee Celebration, for the co-operation and support of employers throughout the country over the years. It also aims to alleviate the financial burden of employers because SOCSO is aware of the difficulties faced by employers in the COVID-19 pandemic situation."

All eligible employers who have yet to register under the Acts are encouraged to do so. Employer registration can be done online through the ASSIST Portal.

As of 31 December 2020, a total of 487,706 active employers registered under Act 4 with 8.57mn employees now have SOCSO protection. SOCSO has also expanded the scope of coverage of Act 4 to foreign workers working legally in the country, effective 1 January 2019, where a total of 1.6mn foreign workers have been registered to date.

The failure of employers to register their enterprises and employees within the stipulated period is an offense punishable by compounding action and two prosecutions. If charged in court and convicted, the employer can be fined up to RM10,000.00 or jailed for up to two years, or both. In addition, employers will also be charged interest at the rate of 6% per annum on late contributions if they register late within the stipulated period.

From 2010 to 31 December 2020, a total of 17,471 cases were received for prosecution under Act 4, for various offenses.

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