PSM slams 'spineless' govt U-turn on Socso's Lindung 24 Jam scheme

 

Parti Sosialis Malaysia (PSM) has condemned the government’s decision to make Social Security Organisation’s (Socso) Lindung 24 Jam scheme voluntary, describing the move as a “spineless U-turn”.

In a statement issued yesterday, PSM deputy chairperson S Arutchelvan said the reversal came barely a month after the scheme was launched as a mandatory programme.

“If the government is going to make a U-turn on this critical scheme from mandatory to voluntary, then it should not be called Lindung 24 Jam.

“The very name implies round-the-clock protection. What we now have is protection only if you can afford it,” he said.

The criticism came after government spokesperson Fahmi Fadzil announced yesterday that the cabinet had decided to make participation in the scheme voluntary with immediate effect.

Public feedback considered

Elaborating on the decision today, Human Resources Minister R Ramanan said the decision was made after considering public feedback on the scheme.

R Ramanan

He said the move allows Malaysian workers to decide for themselves whether to contribute to the scheme according to their needs and circumstances, while participation remains mandatory for foreign workers under existing legal provisions.

Ramanan added that Socso would announce details of the voluntary participation mechanism for local workers in the near future, and that the ministry would also review the scheme's implementation mechanism by the end of the year.

“The review will cover its policy direction, implementation effectiveness and financial sustainability to ensure the scheme remains viable and continues to benefit the public,” he said in a statement.

‘Protection gap’ remains unsolved

However, Arutchelvan warned that making the scheme voluntary would likely discourage participation, particularly among lower-income workers.

"Between 2018 and August 2025, Socso rejected 26,865 claims because they were classified as non-work-related accidents. The Lindung 24 Jam scheme was specifically designed to close this protection gap," he said.

He added that the voluntary nature may make low-income workers opt out of the scheme due to financial constraints.

The deputy chairperson also claimed that during a meeting between PSM and Socso on July 2, the party was informed that it was the cabinet, rather than Socso itself, that had insisted workers bear the full cost of contributions.

"Now, it appears even that compromise has been overridden by the same cabinet, most likely to appease certain vested interests," he added.

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Arutchelvan argued that mandatory contributions are a cornerstone of Malaysia's social security system, thus calling on the government to reverse the decision to make the scheme voluntary.

“We call on the government to reverse this decision and restore the mandatory nature of the Lindung 24 Jam scheme. Workers deserve protection, not uncertainty,” he said.

Automatic enrolment

Previously, the Lindung 24 Jam scheme was implemented on June 1 to extend Socso's protection to accidents occurring outside working hours, including during rest days, public holidays and other daily activities.

Under the original implementation, all eligible Malaysian workers covered by Socso were automatically enrolled, with contributions deducted from their salaries by employers.

Employees were to bear the full cost of the scheme, with contributions calculated based on monthly wages up to a salary ceiling of RM6,000.

The contribution rate was set at 0.75 percent for the first two years, increasing to one percent for the following three years and 1.25 percent from the sixth year onwards.

PSM secretary-general Sivaranjani Manickam had criticised this, saying that it would be only right for employers to also contribute to the protection scheme.

She argued that if company profits can increase due to the contribution of the workers, then employers must also play a bigger role in ensuring workers get proper social protection. - Mkini