Malaysia to provide social security scheme to Nepalis worker, Lifetime allowance to the family of the deceased

Kathmandu, March 3

A memorandum of understanding has been signed between the two countries to include Nepalis worker, working in Malaysia in Malaysia’s social security scheme.

With the agreement to enlist Nepali workers in the Social Security Organization (SOSO) of Malaysia, Nepalis will be included in the scope of social security.

On behalf of Nepal, Rajan Shrestha, Executive Director of the Foreign Employment Board ,Chief Executive Officer (CEO), Mohammed Azman of SOCSO signed on behalf of Malaysia. Shrestha signed the agreement in Nepal on March 19 and Mohammed signed the agreement in Malaysia on March 30.

The government had approved the final draft of the MoU after discussions at various stages with the active participation of the Nepali Embassy in Kuala Lumpur.

A memorandum of understanding (MoU) has been signed in both Kathmandu and Kuala Lumpur through the exchange of letters in the context of the global Covid-19 transition.

What are the facilities in the plan?

After joining SOCSO, Nepali workers will get various facilities. For the affiliated workers, the employer has to pay 1.25 percent of the monthly salary of the worker on a monthly basis.

Foreign workers affiliated with SOCSO can join a scheme called Employment Injury Same for Foreign Workers. Under this scheme, the worker will get the prescribed compensation if he / she falls ill due to an accident in the workplace or due to workplace. The benefits received under this scheme are categorized as Temporary Disability Benefit, Permanent Disability Benefit, Dependent Benefit, Continuous Attendance Allowance, Funeral Expenses and Rehabilitation Facility.

Similarly, the mentioned benefits are of the nature of being available to some workers themselves, some workers ‘families and workers’. SOCSO is also updating the family data to benefit the workers’ families, the press release said.

Free treatment in case of accident or illness

Workers affiliated with SOCSO will receive free treatment in the event of an accident or illness in the workplace for any reason.

For workplace accidents, employers must fill out an accident report form with punch cards or attendance records, a medical certificate and a copy of the identity card and submit it to the SOCSO office. In case of an accident on the way to work or on the way back from work, in addition to the documents, the police report and the road map used during the evacuation should also be included.

Free treatment will be provided to the workers suffering from workplace accident or on the way to work or from workplace related diseases while undergoing treatment at panel clinics, government clinics and government hospitals affiliated with SOCSO. In addition, workers who are completely disabled, have lost 100% of their income potential in the future, and need continuous care will be entitled to continuous attendance allowance based on the recommendation of the prescribed medical board.

Disability allowance will be provided

Similarly, the employer of the deceased workers will be provided the prescribed funeral expenses as prescribed during the cremation in Malaysia or in the country of the worker.

Temporary disability benefits, permanent disability benefits and dependent benefits are benefits available to the worker himself or his family. If a worker is unable to earn a permanent income due to an accident, he or she is eligible for permanent disability benefits at the rate of 90 percent of his or her daily salary. Those who are temporarily unable to work can earn up to 80 percent of their salary, subject to certain conditions.

Lifetime allowance to the family of the deceased

According to the signature with SOCSO and the board, the family of the deceased who died in the workplace in Malaysia has been provided with lifelong allowance. Under the dependent benefit, if a worker dies in the line of duty, his / her widow / widower can get the amount at the rate of 60 percent of his / her daily salary for life.

Similarly, the child of a deceased worker can get 40 percent of the daily salary if the mother or father is alive till the age of 21 years and 60 percent of the daily salary if the mother or father dies. If there is no husband, wife or children: parents, siblings, grandparents can also get the amount at the rate of 30 to 40 percent of the daily salary.

300,000 Nepalis under social security

In the past, workers affiliated with the Foreign Workers’ Compensation Sem (FWCS) were required to register with SOCSO the day after the FWCS expires on December 31, 2019.

But after January 1, 2020, all employers must join SOCSO. Accordingly, so far more than 4 lakh employers and more than 7 million domestic and foreign workers have joined SOCSO. The organization has 54 offices across Malaysia.

Similarly, due to the provision of registration in this social security institution, about 300,000 Nepali workers have joined SOCS so far.

Following this MoU, cooperation between the two countries is expected to increase in the flow of social security benefits, exchange of views and awareness of workers and stakeholders to make the social security of Nepali workers working in Malaysia effective.