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Wednesday, April 9, 2025

Socso identifies 3 sectors with worst non-compliance rates

 

Free Malaysia Today
Employers who fail to register and pay Socso contributions for their workers can be fined up to RM5,000 and face legal action. (Bernama pic)

PETALING JAYA
The accommodation and food and beverage sectors top the non-compliance list for Social Security Organisation (Socso) contributions, with 880 fines and prosecutions issued since the start of last year.

Vehicle maintenance companies and beauty salons recorded 658 cases while the manufacturing sector recorded 590 cases during the same period, said Socso.

In a statement, CEO Azman Aziz Mohammed said action, comprising fines, penalties for late payment, and prosecution, would not be taken against employers who voluntarily register their workers from April 1-30 and pay for their contributions.

“This one-month opportunity is considered the final chance for employers to register their employees and settle any outstanding contributions before Sosco rolls out enforcement measures nationwide to ensure compliance,” he said.

“Employers in these sectors are also encouraged to continue registering and settling contributions for their foreign workers to avoid any legal action.”

Azman said Socso’s foreign worker coverage had increased by 5.5%, covering 120,608 new contributors as of February compared to the same period in 2024.

Based on Socso’s current registration records, the manufacturing sector had the highest intake of foreign workers (24%), followed by construction (17%), and other service activities (11%).

Employers who fail to register and pay Socso contributions for their workers can be fined up to RM5,000 and face legal action.

Azman said 15,922 compounds totalling RM11.9 million were issued to employers who failed to register their businesses and workers from 2019 to 2024, with 13,215 cases prosecuted under the Workers’ Social Security Act and the Employment Insurance System Act for various offences.

He said that Socso statistics up to February showed that although nearly 1.64 million employers were registered under the Workers’ Social Security Act 1969, only 641,631 employers actively contributed (at least one contribution in the last 12 months).

Socso encourages all eligible employers who have yet to register to do so immediately by visiting any of its 54 offices nationwide or by contacting its careline at 1-300-22-8000. - FMT

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