Human Resources Minister Dato’ Sri R. Ramanan said the LINDUNG 24 Jam scheme under PERKESO should not be viewed as a financial burden, but as an affordable social protection measure for workers and their families.
He said the scheme’s low contribution rate was intentionally set to ensure wider access while providing a safety net against unexpected events including accidents, disability and loss of income.
“If we view this scheme as a burden, we would not appreciate its value until something untoward happens. How many cases occur in a single week due to accidents? Someone falls off a motorcycle, the bike is damaged, a leg is broken, an arm is broken. They cannot care for their children, cannot look after their parents, and so on.
“Is 0.75 per cent too high if it ensures that families continue to be taken care of in the event of something unforeseen? The contribution is meant to protect yourself and your family,” he told reporters after officiating the LINDUNG Kerjaya MADANI Carnival in Seremban on Tuesday.
Ramanan urged workers and employers to understand the scheme’s benefits, including the financial assistance and rehabilitation support provided, before assessing its value.
He said more than nine million contributors under the Employees’ Social Security Act 1969 (Act 4) have been automatically covered under LINDUNG 24 Jam for non-work-related accidents since June 1.
The scheme carries an initial contribution rate of 0.75% of monthly wages, with employers responsible for deducting salaries and making monthly payments to PERKESO on behalf of employees.
