PUTRAJAYA: The Non-Work-Related Accident Scheme (Lindung 24 Hour) under the Social Security Organisation (PERKESO) remains mandatory for foreign workers and will continue to be implemented according to existing legal provisions.
However, Human Resources Minister, Datuk Seri R. Ramanan, said that the scheme is no longer mandatory for local workers, instead being implemented on a voluntary basis with immediate effect.
“This decision gives local workers the flexibility to choose whether they wish to contribute under the scheme according to their respective needs and considerations.
“The implementation mechanism and the voluntary participation process for local workers will be announced by PERKESO in the near future,” he said in a statement here today.
Yesterday, the Cabinet meeting decided that contributions for the Lindung 24 Hour Scheme are not mandatory and will be implemented on a voluntary basis with immediate effect.
Although its implementation is now voluntary for local workers, he said that the scheme remains an important initiative in providing social security protection to workers.
He said that this is in the event that workers experience accidents outside working hours and workplace, including while carrying out daily activities.
“KESUMA will review the implementation mechanism of this scheme towards the end of the year.
“This includes aspects of policy direction, effectiveness of implementation, and fund sustainability to ensure that this scheme remains sustainable and beneficial to the people,” he said.
He clarified that if necessary, the findings of the review will be presented to Parliament for proposed amendments to the Employees’ Social Security Act 1969 [Act 4].
Kosmo Online