Human resources minister R Ramanan says the scheme will continue to be applied for foreign workers in accordance with existing legal provisions.
This comes after communications minister Fahmi Fadzil said the Cabinet had decided that the scheme would be voluntary instead of mandatory, with immediate effect.
“Contributions to Lindung 24/7 will remain mandatory for foreign workers and will continue to be implemented in accordance with existing legal provisions,” human resources minister R Ramanan said in a statement.
He said the decision allowed local workers to choose whether to contribute to the scheme based on their individual needs and circumstances, with Perkeso set to announce the implementation mechanism and voluntary enrolment process in the near future.
“The ministry will review the implementation mechanism of the scheme towards the end of the year. This review will cover the scheme’s policy direction, implementation effectiveness and fund sustainability to ensure it remains viable and continues to benefit the public,” he added.
Ramanan also said that, if necessary, the findings of the review would be tabled in Parliament together with proposed amendments to the Employees’ Social Security Act 1969.
Fahmi said yesterday that the decision to make the scheme voluntary for local workers was finalised during the Cabinet meeting on Wednesday, after Prime Minister Anwar Ibrahim raised the public feedback he had received on the implementation.
Introduced last month, Lindung 24/7 is fully worker-funded, unlike traditional Perkeso models which are funded mainly by employers. Contributions start at 0.75% of monthly wages, rising to 1% in year three and 1.25% from the sixth year onward.
Monthly Perkeso contributions for workers earning RM3,000 to RM5,000 a month range from RM22.50 to RM37.50, deducted directly from their wages.
Employers remit the amount to Perkeso alongside the other usual monthly contributions, allowing eligible workers to receive coverage without taking up a separate policy.
Lindung 24/7 offers standardised protection to all contributors regardless of age as long as they remain employed, instead of benefits varying according to individual policy terms and coverage levels. - FMT
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