Release Note - version 2.11.8

Release Date: 25 May 2026 

Label Update: 20 July 2026

Country: Malaysia

SOCSO Compliance Update Effective 1 Jun 2026

This update reflects the Employees’ Social Security (Amendment) Act 2026, gazetted on 5 March 2026. Following the latest PERKESO clarification, participation in SKBBK (LINDUNG 24 Jam) is voluntary for local employees and mandatory only for foreign workers. The new category options are available in Financio Payroll, and employers must select the applicable SOCSO category for each employee. Employers should assign Category 1 or 2 (with coverage LINDUNG 24 Jam) to employees who opt in (local) or who are foreign workers (mandatory), and Category 3 or 4 to employees who do not participate.

Employees who wish to opt out should refer to the User Guide for the Notice of Liability Exemption (see “Where to Get More Information” below) for the steps to apply.

Under this scheme, if any of your employees also work for another company, only ONE employer is allowed to deduct and pay SKBBK for them.

Background & Regulatory Context

Previously, SOCSO accident protection only applied to injuries that arose out of and during the course of employment, meaning workplace injuries, accidents during the commute to or from work, and occupational diseases. If an employee was injured at home over a weekend, during a sports activity, or in any personal accident outside of working hours, they were not covered by SOCSO and had to rely on personal insurance or private takaful.

Under the new scheme Skim Kemalangan Bukan Bencana Kerja (LINDUNG 24 Jam) (SKBBK), this limitation is removed. For employees who participate, whether voluntarily (local) or as a mandatory requirement (foreign workers), coverage now extends to personal accidents that occur at any time, inside or outside of working hours, as long as the accident happens within Malaysia.

Coverage Comparison:

What is not covered under LINDUNG 24/7?

The following are excluded from SKBBK non-employment injury benefits:

• Accidents that arise out of and during the course of employment (these remain covered under the existing Employment Injury Scheme)
• Accidents occurring outside of Malaysia
• Accidents involving foreign employees who are in breach of their immigration conditions
• Accidents covered under a separate statutory scheme (e.g. public sector pension schemes)

Who bears the cost?

The SKBBK contribution applies only to employees who are participating in the scheme — local employees who voluntarily opt in, or foreign employees, for whom participation is mandatory. The SKBBK contribution is borne entirely by the employee. Unlike the Employment Injury and Invalidity schemes where both employer and employee contribute, the SKBBK scheme requires no additional employer contribution. The employer's responsibility is limited to deducting the SKBBK amount from the employee's salary each month and remitting the combined SOCSO + EIS + SKBBK total to PERKESO by the 15th of the following month.

Contribution rate — phased implementation

SKBBK contributions are borne entirely by employees and will be implemented in three phases. All rates are applied on the employee's monthly contribution salary, capped at the RM6,000 wage ceiling.

All rates are capped at the RM6,000 monthly wage ceiling. Financio automatically applies the correct phase rate based on the scheme year — no manual updates are required.

Steps to set SOCSO Contribution in the Financio Payroll:

The following screens have been updated to reflect the SKBBK (LINDUNG 24 Jam) scheme.

1. SOCSO Category

The SOCSO category dropdown options have been updated to include LINDUNG 24 Jam coverage.

Categories 1 and 2 (with SKBBK) apply to foreign workers, or to local employees who have voluntarily opted in. Local employees who do not opt in, or who have designated another employer to handle their SKBBK contribution, should be assigned Category 3 or 4 instead.

Updated category options:

• [RENAME with LINDUNG 24 JAM] Category 1: Employment Injury / Invalidity with LINDUNG 24 JAM

For employees below 60 years of age. Contribution rates: 1.75% employer's share and 0.5% employee's share, plus an additional 0.75% employee's share for SKBBK (LINDUNG 24 Jam).

• [RENAME with LINDUNG 24 JAM] Category 2: Employment Injury with LINDUNG 24 JAM

For employees who have attained the age of 60. Contribution rate: 1.25% of the employee's monthly wages, borne solely by the employer, plus an additional 0.75% employee's share for SKBBK (LINDUNG 24 Jam).

• Category 3: Employment Injury and Invalidity Scheme 

For employees below 60 years of age. Contribution rates: 1.75% employer's share and 0.5% employee's share. SKBBK (LINDUNG 24 Jam) deduction does not apply under this category.

• Category 4: Employment Injury Scheme 

For employees who have attained the age of 60. Contribution rate: 1.25% of the employee's monthly wages, borne solely by the employer. SKBBK (LINDUNG 24 Jam) deduction does not apply under this category.

Note: Category 3 and Category 4 apply to employees who have more than one employer, or employees who choose to opt out. As SKBBK is voluntary for local employees, “opting out” and “not participating” refer to the same outcome — no SKBBK (LINDUNG 24 Jam) deduction is made. Employees who choose to opt in and have more than one (1) employer are required to designate which employer will handle their SKBBK contribution within 30 days from 1 June 2026, or from the date the notification is received. The selection can be made via the PERKESO portal at https://lindungfaedah.perkeso.gov.my. For more information, visit the PERKESO website.

2. Salary Calculation Table

A new column, Employee SKBBK Contribution, has been added to the Salary Calculation page to display the SKBBK deduction amount per employee.

For employees under Category 1 or 2 (with LINDUNG 24 Jam), the SKBBK contribution amount will be displayed. For employees under Category 3 or 4 (without LINDUNG 24 Jam), the SKBBK contribution amount will show as 0.00, as SKBBK does not apply to these categories.

3. Payslip

The following updates have been made to the payslip formats:

• Column Detail Format: A new SKBBK column has been added to display the SKBBK deduction on the payslip.

[For Category 1 and 2]

[For Category 3 and 4]

• T-Format: A new SKBBK column has been added. The YTD label has been updated to YTD Employee SOCSO & SKBBK, reflecting the combined SOCSO and SKBBK contribution amount.

[For Category 1 and 2 - with LINDUNG 24 Jam]

The YTD Employee SOCSO & SKBBK amount is a combined total of the employee's SOCSO contribution and SKBBK contribution:

YTD Employee SOCSO & SKBBK = SOCSO + SOCSO SKBBK

In the sample payslip above, the employee's deduction breakdown shows SOCSO (RM 29.75) and SOCSO SKBBK (RM 44.65) listed separately under Deductions. These two amounts are added together and reflected as a single YTD figure (YTD Employee SOCSO & SKBBK: RM 74.40) since this category includes SKBBK (LINDUNG 24 Jam) coverage.

[For Category 3 and 4 - without LINDUNG 24 Jam]

Since SKBBK does not apply under these categories, the YTD Employee SOCSO & SKBBK amount reflects the SOCSO contribution only:

YTD Employee SOCSO & SKBBK = SOCSO only

In the sample payslip above, only SOCSO (RM 12.25) is deducted. There is no SOCSO SKBBK line item, so the YTD figure shown, RM 12.25, is the SOCSO amount alone.

Where To Get More Information

For the official government position on the scheme, refer to the PERKESO website and FAQ:

• PERKESO SKBBK overview: https://www.perkeso.gov.my/skim-kemalangan-bukan-bencana-kerja-lindung-24-jam.html 
• PERKESO SKBBK FAQ (PDF): https://www.perkeso.gov.my/images/borang/lindung24jam/SoalanLazimLindung24Jam.pdf 
• User Guide for the Notice of Liability Exemption — LINDUNG 24 Jam Scheme: https://www.perkeso.gov.my/images/lindung/lindung-24-jam/130726-PANDUAN_PENGGUNA_NOTIS_PELEPASAN_LIABILITI_SKIM_LINDUNG_24_JAM.pdf 

If you have questions about how this change affects your specific payroll setup, don't hesitate to get in touch with the Financio support team.