fbpx

Two things you should know if you’re an expat worker in Malaysia

Other Expats insurance restrictions

Two things you should know if you’re an expat worker in Malaysia

Two major updates. The first is about insurance. One of the biggest insurance companies in Malaysia recently released a memo (not public) about countries that are sanctioned. We’re not sure if the sanctions are on a national level by Malaysia or just this one single company. But here’s what you need to know.

What countries are sanctioned?
Not sure why they are sanctioned and whether by the Malaysian government or it is just the insurance company which is one of the biggest in Malaysia. So, it is worth noting.

Countries with severe sanctions
Iran
Cuba
North Korea
Syria
Crimea

Countries with limited (less severe) sanctions
Somalia
Sudan
Belarus
South Sudan
Zimbabwe
Democratic Republic of Congo
Russia and
Ukraine

What this means and what to do

If you plan to get any form of insurance, maybe do it now. Expats from the countries are not completely banned from receiving insurance.

They will just require extra clearance before they can be approved. Not sure how they came up with the list either.

You won’t find this in the news anywhere, yet. Only if you go to try to get insurance.

The second is about SOSCO

What is SOSCO

 

Social Security Organization (SOCSO) is a government agency established to implement social security schemes and provide social security protection to employees and their dependents.

It currently only applies to Malaysian citizens and permanent residents. But starting on 1 January 2019, expats and foreign workers will be included too in line with the Equality of Treatment (Accident Compensation) Convention, 1925 (No.19) and Conference Committee on the Application of Standard under the International Labour Organisation (ILO).

What this means
You will need to contribute some of your monthly salary to the Employment Injury Scheme (EIS) which is like insurance. Your employer will also contribute some part of it too.

The program provides insurance against work-related injuries. For instance, if you require treatment as a result of injuries suffered at work or in the line of duty (like going to work or coming back from work).

It also includes Medical Benefits, Temporary Disablement Benefits, Permanent Disablement Benefits, Constant-attendance Allowance, Dependants’ Benefits and Rehabilitation, an RM6,500 repatriation cost as well as funeral costs. See more details here.

How much is it?
The contribution rate varies. But it ranges from 10 sens to RM19.75 for you (as an employee), and between 40 sens and RM69.05 for employers.

 

Contribution Rates

The actual monthly wage of the monthFirst Category (Employment Injury Scheme and Invalidity scheme)Second Category (Employment Injury Scheme)
Employer’s contributionEmployee’s contributionTotal ContributionContribution By Employer Only
1.Wages up to RM30

 

40 cents10 cents50 cents30 cents
2.When wages exceed RM30 but not RM5070 cents20 cents90 cents50 cents
3.When wages exceed RM50 but not RM70RM1.1030 centsRM1.4080 cents
4.When wages exceed RM70 but not RM100RM1.5040 centsRM1.90RM1.10
5.When wages exceed RM100 but not RM140RM2.1060 centsRM2.70RM1.50
6.When wages exceed RM140 but not RM200RM2.9585 centsRM3.80RM2.10
7.When wages exceed RM200 but not RM300RM4.35RM1.25RM5.60RM3.10
8.When wages exceed RM300 but not RM400RM6.15RM1.75RM7.90RM4.40
9.When wages exceed RM400 but not RM500RM7.85RM2.25RM10.10RM5.60
10.When wages exceed RM500 but not RM600RM9.65RM2.75RM12.40RM6.90
11.When wages exceed RM600 but not RM700RM11.35RM3.25RM14.60RM8.10
12.When wages exceed RM700 but not RM800RM13.15RM3.75RM16.90RM9.40
13.When wages exceed RM800 but not RM900RM14.85RM4.25RM19.10RM10.60
14.When wages exceed RM900 but not RM1,000RM16.65RM4.75RM21.40RM11.90
15.When wages exceed RM1,000 but not RM1,100RM18.35RM5.25RM23.60RM13.10
16.When wages exceed RM1,100 but not RM1,200RM20.15RM5.75RM25.90RM14.40
17.When wages exceed RM1,200 but not RM1,300RM21.85RM6.25RM28.10RM15.60
18.When wages exceed RM1,300 but not RM1,400RM23.65RM6.75RM30.40RM16.90
19.When wages exceed RM1,400 but not RM1,500RM25.35RM7.25RM32.60RM18.10
20.When wages exceed RM1,500 but not RM1,600RM27.15RM7.75RM34.90RM19.40
21.When wages exceed RM1,600 but not RM1,700RM28.85RM8.25RM37.10RM20.60
22.When wages exceed RM1,700 but not RM1,800RM30.65RM8.75RM39.40RM21.90
23.When wages exceed RM1,800 but not RM1,900RM32.35RM9.25RM41.60RM23.10
24.When wages exceed RM1,900 but not RM2,000RM34.15RM9.75RM43.90RM24.40
25.When wages exceed RM2,000 but not RM2,100RM35.85RM10.25RM46.10RM25.60
26.When wages exceed RM2,100 but not RM2,200RM37.65RM10.75RM48.40RM26.90
27.When wages exceed RM2,200 but not RM2,300RM39.35RM11.25RM50.60RM28.10
28.When wages exceed RM2,300 but not RM2,400RM41.15RM11.75RM52.90RM29.40
29.When wages exceed RM2,400 but not RM2,500RM42.85RM12.25RM55.10RM30.60
30.When wages exceed RM2,500 but not RM2,600RM44.65RM12.75RM57.40RM31.90
31.When wages exceed RM2,600 but not RM2,700RM46.35RM13.25RM59.60RM33.10
32.When wages exceed RM2,700 but not RM2,800RM48.15RM13.75RM61.90RM34.40
33.When wages exceed RM2,800 but not RM2,900RM49.85RM14.25RM64.10RM35.60
34.When wages exceed RM2,900 but not RM3,000RM51.65RM14.75RM66.40RM36.90
35.When wages exceed RM3,000 but not RM3,100RM53.35RM15.25RM68.60RM38.10
36.When wages exceed RM3,100 but not RM3,200RM55.15RM15.75RM70.90RM39.40
37.When wages exceed RM3,200 but not RM3,300RM56.85RM16.25RM73.10RM40.60
38.When wages exceed RM3,300 but not RM3,400RM58.65RM16.75RM75.40RM41.90
39.When wages exceed RM3,400 but not RM3,500RM60.35RM17.25RM77.60RM43.10
40.When wages exceed RM3,500 but not RM3,600RM62.15RM17.75RM79.90RM44.40
41.When wages exceed RM3,600 but not RM3,700RM63.85RM18.25RM82.10RM45.60
42.When wages exceed RM3,700 but not RM3,800RM65.65RM18.75RM84.40RM46.90
43.When wages exceed RM3,800 but not RM3,900RM67.35RM19.25RM86.60RM48.10
44.When wages exceed RM3,900 but not RM4,000RM69.05RM19.75RM88.80RM49.40
45.When wages exceed RM4,000RM69.05RM19.75RM88.80RM49.40

 

The First Category refers to employees who are less than 60 years old. Or those who are 55 years old and have never contributed to Sosco because of non-eligibility. The calculations for this is 1.74% from the employer and 0.5% from the employee.

The Second Category refers to employees above 60 years old. The contribution rate is 1.25% of the employee’s wage paid by the employer.

Other Expats on Instagram

Stay in the loop! 

Like what you read? Get  updates like this directly in your inbox!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

© rewordink/Other Expats 2019