SOCSO – Invalidity Pension Scheme Benefits
In the final instalment of our guide to SOCSO, SaveMoney.my will explain the benefits under the Invalidity Pension Scheme.
Invalidity Pension Scheme – Benefits
Invalidity Pension
The Invalidity Pension is paid to employees who suffer from a chronic illness (before they attain the age of 55) that renders them invalid and unable to work (e.g. heart attack, renal or kidney failure, cancer, mental illness, etc.). This is paid for as long as the employee suffers from the invalidity or dies.
The conditions for eligibility:
Has not reached the age of 55 at the time of invalidity (this must be evidenced to SOCSO)
Certified invalid by SOCSO’s Medical Board or Medical Appeals Board
Fulfilled either the Full Qualifying Condition or Reduced Qualifying Condition
Full Qualifying Condition:
Monthly contributions paid for at least 24 out of the past 40 consecutive months immediately preceding the month in which notice of invalidity is received by SOCSO, or at least 2/3rds of contributing months from the point of start of coverage (usually start of employment) to date of notice of invalidity.
The full invalidity pension rate is between 50% – 65% of last monthly wage depending on the number of contributions made.
Reduced Qualifying Condition:
Monthly contributions paid for at least 1/3rds of complete months between the point of coverage starting to the date of notice of invalidity given to SOCSO; this must be at least 24 contributions.
The reduced invalidity pension rate is 50% of last monthly wage depending on number of contributions made, with a minimum amount of RM250 a month.
Constant Attendant Allowance
This is paid to an employee who is suffering from invalidity, and is so severely incapacitated that he constantly requires the personal attendance of another person. The allowance is equal to 40% of the rate of the Invalidity Pension subject to a maximum of RM500 a month. Eligibility for this allowance is determined by the SOCSO Medical Board or the Medical Appeals Board and payment is made directly to the recipient of the benefit.
To apply, the Insured Person is required to fill in and complete the following forms and provide the following information:
Form PKS(F)41 (Notice of Invalidity)
Medical Report (Attachment 1 – Format provided by SOCSO)
A copy of Identity Card
Invalidity Grant
An employee can receive this Grant if they have been certified to be suffering from invalidity by the SOCSO Medical Board or the Medical Appeals Board, however is not eligible to receive Invalidity Pension as he does not fulfil any of the qualifying contribution conditions, but has made contributions for at least 12 months.
The invalidity grant is equal to the total amount of contributions paid by the employee for the Invalidity Pension Scheme including interest. This payment is made in form of a one-time lump sum payment.
Survivor’s Pension
This pension is payable to the dependents of an employee who dies while receiving the Invalidity Pension, or who dies before the age of 55 but has met the Full or Reduced Qualifying Conditions.
The same benefit will be divided amongst the employee’s surviving spouse(s) and children in the following priority and proportions:
Spouse(s) – 3/5ths – receives benefit for life even after remarriage
Children (up to 21 years of age or upon marriage) – 2/5ths of total in total – includes biological, step-children, adopted children and children born out of wedlock
If the employee leaves behind no spouse(s) or children, the dependent’s benefit will be divided into the following priority and proportions:
Parents: 4/10ths – for life
Siblings: 3/10ths – till age of 21 or marriage
Grandparents: 4/10ths – for life
*Hann Liew is the Founder and Editor-in-Chief of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.
