24-Hour Protection: Contributions to Increase Gradually, Benefits to Reach 80 Percent

KUALA LUMPUR: The contribution rate for the Social Security Organisation’s (PERKESO) Non-Work Related Accident Scheme (24-Hour Protection) will be increased gradually to 1.25 percent in the sixth year, thus enabling income replacement benefits to be raised from the current 48 percent to 80 percent.

PERKESO Deputy Chief Executive (Strategic and Corporate) Edmund Cheong Peck Huang said the current contribution rate of 0.75 percent is the lowest viable rate at the initial stage, after the government directed PERKESO to introduce the scheme gradually.

He said the increase in the contribution rate takes into account the needs, ensuring that protection benefits remain relevant, including the medical and rehabilitation benefits provided by PERKESO.

“That is why we used 0.75 percent. We will increase to return to 1.25 percent in the sixth year and benefits will also increase.

“This means currently it is 48 percent, in the sixth year it will become 80 percent income replacement,” he told reporters after the Media Literacy Session with Journalists and Editors, as well as the Announcement of the PERKESO iLINDUNGu 2026 Media Awards here, today.

Cheong said the original rate of 1.25 percent was set taking into account PERKESO’s benefit structure, which typically provides income replacement between 80 and 90 percent of a person’s income.

He said for example, an individual with a salary of RM6,000 may receive a monthly payment of approximately RM4,800, if they suffer permanent total disability.

However, Cheong said the decision to implement the scheme gradually was made after the matter was discussed at the ministry and Cabinet levels, based on studies that found the current rate was suitable as an initial rate.

He said the 24-Hour Protection scheme was not introduced abruptly, as the proposal for the scheme had gone through a discussion process since around 2017, including at the Cabinet and relevant ministry levels, while employers were also informed in advance of its implementation.

Regarding the separation of contributions in the salary slip, Cheong said the measure aims to ensure transparency as well as help workers understand the protection received through each PERKESO scheme, including the Employment Injury and Disability Scheme, the Employment Insurance Scheme and the 24-Hour Protection scheme.

Meanwhile, Cheong advised workers to assess their existing level of protection before deciding to opt out of the 24-Hour Protection scheme and not to rely solely on medical cards or personal accident (PA) insurance.

He said the coverage of each policy differs and is not necessarily comprehensive, while the 24-Hour Protection scheme can provide long-term income support to workers or dependents, in the event of serious injury.

“For example, if our salary is RM2,000 and our PA is only RM10,000, it will only last for five months. But with the 24-Hour Protection scheme and if you have a serious injury, it can support you for a lifetime. That needs to be studied and understood. So, choose wisely,” he said.

Media Selangor