KUALA LUMPUR, Aug 17 (Bernama) -- The contribution rate for the Social Security Organisation's (PERKESO) Non-Employment Injury Scheme, or LINDUNG 24 Jam, will be increased gradually to 1.25 per cent in the sixth year, thus allowing income replacement benefits to be raised from the current 48 per cent to 80 per cent.
PERKESO deputy chief executive (Strategic and Corporate) Edmund Cheong Peck Huang said the current contribution rate of 0.75 per cent was the lowest that could be implemented at the initial stage after the government instructed PERKESO to introduce the scheme in stages.
He said the increase in the contribution rate took into account the need to ensure that the protection benefits remained relevant, including the medical and rehabilitation benefits provided by PERKESO.
“So, that’s why we went to 0.75 per cent. We will increase it back to 1.25 per cent in the sixth year and the benefits will also increase. Meaning that now it is 48 per cent, and in the sixth year it will become 80 per cent income replacement,” he told reporters after the Media Literacy Session with Journalists and Editors and the announcement of the PERKESO iLINDUNGu 2026 Media Awards here today.
Elaborating, Cheong said the original contribution rate of 1.25 per cent was set by taking into account PERKESO’s benefits structure, which usually provides income replacement of between 80 and 90 per cent of a person’s income.
For example, he said an individual earning RM6,000 might receive a monthly payment of about RM4,800 if he suffered total permanent disability.
However, he said decision to implement the scheme gradually was made after the matter was discussed at the ministry and Cabinet levels, based on a study which found that the current rate to be suitable as a starting rate.
Cheong said LINDUNG 24 Jam was not introduced suddenly as the proposed scheme had been under discussion since 2017, including at the Cabinet and relevant ministry levels, while employers had also been informed in advance about its implementation.
On the separation of contributions on salary slips, he said the move was aimed at ensuring transparency and helping workers understand the protection provided under each PERKESO scheme, including the Employment Injury and Invalidity Scheme, Employment Insurance Scheme and LINDUNG 24 Jam.
Cheong also advised employees to assess their existing level of protection before deciding to opt out of LINDUNG 24 Jam and not rely solely on medical cards or personal accident (PA) insurance.
He said coveratge provided by each policy was different and not necessarily comprehensive, while LINDUNG 24 Jam could provide long-term income support to workers or their dependants in event of a serious injury.
“For example, if we earn RM2,000 and our PA coverage is only RM10,000, it will only last for five months. But with LINDUNG 24 Jam, if you suffer a serious injury, it can support you for the rest of your life. That needs to be studied and understood. So, choose wisely,” he added.
-- BERNAMA