Most women to be covered under Socso

KUALA LUMPUR: The Social Security Organisation (Socso) will expand its coverage from July 1 to include spouses working with their entrepreneur partners, housewives, single mothers and widows.

Human Resources Minister M. Kulasegaran, who disclosed this yesterday, said regulations disqualifying spouses of business partners from working with them would be removed from that date.

This group is currently not considered employees under the Social Security Act 1969 and Employment Insurance Scheme (EIS) 2017.

“A committee has been set up to look into this and once I get the recommendations, I will sign an order to allow protection for spouses working for business owners,” he told a press conference.

A total of 34,000 spouses actively working in their partners’ companies are not covered under Socso, although they contribute to EPF and are subject to income tax.

From next month, they will be eligible for coverage for all accidents and illnesses caused by their work.

They will also be protected under the EIS should they lose their jobs in their partners’ companies.

Kulasegaran said their monthly Socso contribution would be similar to that of a regular employee, which is 1.25% by the employer and 0.5% from the employee under the Social Security Act.

As for the EIS, the contribution is 0.2% each for employer and employee (spouse), he said.

The minister said a Cabinet paper would be tabled to expand Socso coverage to housewives, single mothers and widows of those insured under Socso.

“An estimated 1.4 million housewives, single mothers and widows will benefit once this proposal is passed,” he said.

On another matter, Kulasegaran said only 4,425 of the nearly 100,000 taxi drivers had registered with Socso for the self-employed employment injury scheme.

“The 4,425 taxi drivers have a contribution of RM860,000,” he said.

Taxi drivers, ridesharing app drivers and rental car drivers can choose their contribution rate, ranging from RM157.20 to RM592.80 a year.

Kulasegaran said Socso would hold discussions with the Transport Ministry to get these drivers to register and contribute under the scheme.

At a town hall session for the Human Resources Development Fund (HRDF) training providers earlier, he said the ministry planned to set up an independent board to look into complaints involving HRDF.

HRDF chief executive officer Datuk CM Vignaesvaran came under fire during the two-hour session with various complaints raised by training providers, which included potential conflict of interest by a board member who also owned a training company.