An injury sustained outside working hours by Murkesh (not his real name) inadvertently exposed his employer’s failure to make any contributions to the Social Security Organisation (PERKESO) on his behalf, despite him being a foreign worker in Malaysia.
The incident prompted PERKESO to raid the office of the Nepalese security guard’s employer, resulting in the company being charged and fined for failing to make the mandatory PERKESO contributions for its foreign workers.
“I initially knew nothing about LINDUNG 24 Jam until a friend told me about it. When I tried to make a claim, I was informed that I was not eligible because my employer had not made any contributions for me.
“That was when I found out that, apart from LINDUNG 24 Jam, my employer had also failed to make contributions to other schemes for foreign workers like me,” he told Bernama through an interpreter.
Murkesh was fortunate to have a friend who was aware of the various benefits provided by the Malaysian government, particularly through PERKESO, to safeguard the welfare of foreign workers.
However, not all documented foreign workers are aware of their rights or the protection available to them.
PROTECTION BEYOND THE WORKPLACE
Since June 1, PERKESO has enforced LINDUNG 24 Jam, also known as the Non-Occupational Accident Scheme, for eligible foreign workers. The scheme complements two other forms of protection available to foreign workers in Malaysia -- the Foreign Workers’ Employment Injury Scheme, which came into force on Jan 1, 2019, and the Invalidity Scheme, extended to foreign workers from July 1, 2024.
While the Foreign Workers’ Employment Injury Scheme protects workers against accidents or occupational diseases arising from their employment, the Invalidity Scheme provides a safety net for those who suffer permanent invalidity due to chronic illness or non-work-related injuries that result in a loss of at least one-third of their capacity to work.
The scheme also provides protection in cases of death occurring outside working hours, regardless of the cause.
Complementing these two schemes, LINDUNG 24 Jam was introduced to safeguard all workers, including foreign workers who suffer injuries outside working hours. Without such protection, workers would have to bear their medical expenses themselves.
Under the scheme, contributions are made to PERKESO through a deduction from the worker’s wages by the employer at the prescribed rate.
Nevertheless, PERKESO Chief Executive Officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said nearly 500,000 foreign workers registered with the organisation had yet to have contributions made under the scheme since its implementation.
“Without contributions, workers will not receive protection in the event of workplace accidents, permanent disability, occupational diseases or death.
“Employers have a responsibility to ensure that PERKESO contributions are made to safeguard their workers’ welfare and comply with the law.
“Employers found failing to do so may face a maximum fine of RM10,000, imprisonment of up to two years, or both upon conviction in court under the Employees’ Social Security Act 1969 (Act 4),” he said in a statement.
LOW ACCESS TO HEALTHCARE BENEFITS
However, findings from the Joining.com platform indicate that access to healthcare benefits among migrant workers remains low.
Joining.com is a platform that gives migrant workers a voice by enabling them to anonymously share their experiences with employers and recruitment agencies, while also providing practical information and support for those working abroad.
Available in 16 languages, the platform currently features more than 5,000 worker reviews, including over 2,000 reviews from migrant workers in Malaysia.
Based on about 2,000 reviews by migrant workers in Malaysia, only 19 per cent indicated that they received healthcare benefits.
The figure was even lower in the security sector, with only eight per cent of migrant workers reporting that they received such benefits.
Social mobiliser, case management assistant and associate researcher at the North-South Initiative (NSI), Md Abu Sayed, said many employers chose not to make PERKESO contributions for their foreign workers because of cost constraints.
“Many employers assume that their foreign workers are unaware of their rights or of the Malaysian government’s initiatives to protect their safety and welfare while working in the country.
“Some workers are also deeply concerned that they may lose their livelihoods if they lodge complaints with the authorities. There are also cases where their identification documents and mobile phones are confiscated and kept by their employers,” he told Bernama.
Meanwhile, SUHAKAM Chairman Datuk Seri Mohd Hishamudin Yunus said the commission had received 107 complaints since 2021, including those involving workers’ rights, such as the lack of healthcare protection, salary deductions for taking medical leave and excessive working hours.
He said the highest number of complaints came from the services sector, particularly involving factory workers and security guards, followed by the plantation sector.
“We provide migrant workers with a QR-code platform through which they can anonymously lodge complaints about their employers or any problems they encounter outside working hours, including issues related to contributions to their social protection schemes.
“The platform is available in four languages -- English, Bangla, Hindi and Nepali.
“SUHAKAM also conducts monitoring visits to detention centres, where we meet foreign detainees.
“During these visits, we assess their treatment and conditions of detention, including their access to healthcare, communication with family members and consular assistance, as well as whether they are given reasonable access to representatives of their respective embassies,” he said.
Mohd Hishamudin said the commission had continuously worked with embassies and international human rights organisations, including the National Human Rights Commission of Nepal (HRCN), on migrant workers’ rights since 2019.
“This underscores our commitment to strengthening bilateral cooperation by focusing on investigating human rights violation cases involving migrant workers, addressing high fatality rates, and engaging with PERKESO to enhance access to social security schemes for migrant workers in Malaysia,” he said.
ELIGIBILITY FOR PROTECTION
PERKESO Foreign Workers Division head Hairiri Harun said foreign workers must meet several criteria to qualify for PERKESO protection, including entering Malaysia legally, holding a valid pass or work permit, and working for an employer registered in the country.
They must also have an employer-employee relationship under a contract of service rather than working independently without an employer.
“A worker may have a passport and valid permit and work for a company registered in Malaysia, but they must also be employed under a contract of service.
“They cannot be an independent worker without an employer. There must be an employer-employee relationship,” he told Bernama.
Hairiri said that before 2019, foreign workers in Malaysia were not covered by PERKESO schemes but were instead subject to a workers’ compensation mechanism administered by the Labour Department (JTK).
According to him, the government’s decision to extend PERKESO protection to foreign workers also took into account calls and views from various quarters, including the International Labour Organisation (ILO) and non-governmental organisations, for the group to be provided with appropriate social protection.
“Among the main sectors employing foreign workers are manufacturing, plantations, services and mining, while domestic workers were not initially included under the protection.
“Domestic workers were subsequently brought under PERKESO protection from July 1, 2021,” he said.
ASSISTANCE FOR REPATRIATION
Hairiri said PERKESO also provides assistance to ease the cost of repatriating the remains of foreign workers to their home countries in the event of death.
He said the organisation recognised that the cost of repatriating remains could place a considerable burden on employers or those responsible for making the arrangements.
As such, a benefit of up to RM4,500 is provided to those who bear the repatriation costs, subject to the prescribed conditions.
“The assistance may cover both work-related and non-work-related deaths,” he said.
However, he noted that repatriating a worker who is still alive but has suffered a serious injury or health condition, such as paralysis, could cost considerably more.
He recalled one case involving a Myanmar worker who was paralysed and bedridden, where the cost of repatriation exceeded RM50,000.
Such experiences, he said, were among the factors that prompted efforts to introduce additional protection relating to the repatriation of foreign workers.
REGULAR ENFORCEMENT OPERATIONS
PERKESO Deputy Chief Executive Officer (Operations) Azirruan Ariffin said the organisation remained committed to ensuring that no group was left behind in terms of social protection.
This includes advocacy and enforcement efforts in implementing LINDUNG 24 Jam, particularly among employers of foreign workers.
He said regular enforcement operations were carried out under Op Kesan to identify employers who violated the law. Such employers could be issued warnings and reprimands, as well as compounds nationwide.
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“From the implementation of Ops Kesan between 2020 and September 2026, a total of 25,011 compound notices amounting to RM15 million were issued to employers who failed to register their businesses and workers, while 21,177 cases were prosecuted for various offences,” he said.
Azirruan said PERKESO had earlier conducted the Regularisation Month initiative, initially from May 21 to June 22 before being extended to June 30, 2026, as part of its advocacy and voluntary compliance efforts.
The initiative gave employers an opportunity to register their businesses and workers without being penalised for late registration or contribution payments.
“Through the initiative, 6,586 employers and 281,930 new workers were registered, comprising 247,025 local workers and 34,905 foreign workers,” he said.
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In addition to LINDUNG 24 Jam, PERKESO also provides two other mandatory protection schemes for foreign workers, including expatriates and foreign domestic workers.
The three schemes collectively provide comprehensive protection under LINDUNG PEKERJA.
The other two schemes are as follows: [1, 2]
1. Foreign Workers’ Employment Injury Scheme
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Effective date: Implemented on Jan 1, 2019, replacing the former Foreign Workers’ Compensation Scheme (SPPA). [1, 2]
- Scope of protection: Protects foreign workers against accidents or occupational diseases arising from their employment. This includes:
- Accidents at the workplace;
- Accidents occurring while travelling to and from work via the usual route;
- Accidents occurring during emergencies at the employer’s premises; and
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Occupational diseases, including health problems caused by exposure to workplace hazards such as dust, chemicals or excessive noise. [1, 2, 3, 4]
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Contribution rate: Fully borne by the employer at 1.25 per cent of the worker’s monthly wages. No salary deduction is made from foreign workers for this scheme. [1, 2, 3]
2. Invalidity Scheme
- Effective date: Protection was officially extended to foreign workers below the age of 60 from July 1, 2024. [1, 2]
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Scope of protection: Provides a safety net for foreign workers who suffer permanent invalidity due to chronic illness or non-work-related injuries that result in the loss of at least one-third of their capacity to work. The scheme also covers deaths occurring outside working hours, regardless of the cause. [1, 2]
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Key benefits: Eligible contributors may receive monthly benefits such as the Invalidity Pension and Invalidity/Death Pension for dependants, as well as physical rehabilitation facilities and Funeral Management Benefit (Repatriation) of up to RM7,500 if the deceased worker’s remains are repatriated to their home country. [1]
- Contribution rate: Contributions are shared between the employer and worker:
- Employer: 0.5 per cent of the worker’s monthly wages;
- Foreign worker: 0.5 per cent of the worker’s monthly wages, deducted from the worker’s salary.