All businesses in Malaysia are reminded of their legal obligations by the Social Security Organisation (Perkeso). With the 2024 enforcement of Ops Kesan in full swing, Perkeso requires employers to register and contribute to the social security schemes for their employees. Non-compliance can result in severe penalties, including fines and imprisonment. Here’s an overview of what this entails and how businesses can ensure compliance.

Key Requirements for Perkeso Registration

Importance of Perkeso Compliance

Perkeso plays a crucial role in safeguarding the welfare of workers through its social security programmes. These programmes provide financial support in the event of illness, injury, disability, or death caused by employment. All employers—whether they hire local, foreign, or domestic workers—must comply with Perkeso regulations.

Who Needs to Register?

According to the Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800), all employers are required to register both their businesses and all employees. This includes:

  • Local Workers: All Malaysian citizens employed by a business.
  • Foreign Workers: Non-citizens with official employment contracts.
  • Domestic Helpers: Workers hired for household duties.

Additionally, principal employers are responsible for ensuring that all workers employed by immediate employers are registered with SOCSO and that contributions are paid. Failure to fulfill this responsibility can result in significant fines and legal action.

How to Register

Employers can register with Perkeso through the following steps:

  • Create an Account: Employers need to create an account on the PERKESO Assist Portal.
  • Download Forms: Employers must download the necessary forms from the PERKESO website:
    • Borang Permohonan Enrolment Penggunaan Portal Assist
    • Borang 1 – Pendaftaran Majikan (Employer Registration)
    • Borang 2 – Pendaftaran Pekerja (Employee Registration)
    • Borang SIP 1 – Pendaftaran Majikan (Employer Registration for Employment Insurance)
    • Borang SIP 2 – Pendaftaran Pekerja (Employee Registration for Employment Insurance)
  • Submit Forms: Employers need to fill out the forms on the portal and upload the required supporting documents. The completed Borang Permohonan Enrolment Penggunaan Portal Assist must be sent to idportal@perkeso.gov.my for enrollment approval.

For in-person assistance, employers can also visit any of the 54 Perkeso offices nationwide or call the Perkeso Careline at 1-300-22-8000 for help.

Consequences of Non-Compliance to PERKESO

Employers who fail to comply with Perkeso regulations face significant penalties:

Registration

Employers who do not register with SOCSO or fail to contribute to the scheme may be prosecuted and fined up to RM10,000 or imprisoned for up to two years, or both.

Compound Notices

Perkeso may issue compound notices for offenses that are reported or identified during inspections. Once issued, recipients have 14 days to pay the full compound amount to avoid further legal action. Failure to settle the compound within this timeframe can result in prosecution without further notice.

Continuing Offenses

Employers who are convicted of a continuing offense may be subjected to a daily fine of up to RM1,000 for each day the offense continues after conviction.

Repeated Offenses

For employers who commit repeated offenses, the penalties are even more severe. Those convicted of a repeated offense may face fines of up to RM20,000 or imprisonment for up to five years.

Monetary Penalties

Failure to make timely contributions can also result in significant financial penalties:

  • Compounds: Up to RM5,000 per violation.
  • Late Payment Interest: Charged at 6% annually for delayed contributions.

Employers may face further prosecution under the Employees' Social Security Act:

  • Fines: Up to RM10,000 for each violation.
  • Imprisonment: Up to two years for initial offenses, or up to five years for repeated offenses.

Ops Kesan 2024: Enforcement and Objectives

What is Ops Kesan?

Ops Kesan is an annual enforcement campaign led by Perkeso to ensure that employers comply with social security regulations. The campaign focuses on:

  • Ensuring Compliance: Verifying that all eligible employers are registered and making the required contributions.
  • Accident Prevention: Raising awareness about workplace health and safety.
  • Promoting Worker Welfare: Encouraging employers to prioritize the well-being of their employees through compliance with Perkeso’s Vision Zero plan.

As of 2024, approximately 1.55 million employers are registered under Act 4. However, only 600,819 have actively contributed over the past year, affecting the welfare of millions of workers. Ops Kesan aims to reduce the rising non-compliance rates, particularly among small and medium-sized enterprises.

How to Ensure PERKESO Employer Compliance

Step-by-Step Guide for Employers
  1. Review Your Obligations: Familiarize yourself with the requirements under Act 4 and Act 800.
  2. Gather Necessary Documents: Prepare employment contracts and identification details.
  3. Register Online: Create an account and submit the required forms via the PERKESO Assist Portal.
  4. Submit Enrollment Forms: Send the completed Borang Permohonan Enrolment Penggunaan Portal Assist to idportal@perkeso.gov.my for portal access.
  5. Make Timely Contributions: Ensure that contributions are made by the 15th of each month to avoid fines.
  6. Seek Assistance: Contact the Perkeso Careline or visit a Perkeso office for any issues.

For detailed instructions, refer to Kakitangan.com’s guide on registering and adding employees to the ASSIST Portal.

Benefits of PERKESO Compliance

  • Worker Protection: Ensure that your employees are covered in case of illness or workplace accidents.
  • Avoid Penalties: Stay compliant to avoid costly fines and legal action.
  • Employer Responsibility: Demonstrate your commitment to employee welfare and social responsibility.

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Get Going Right Now!

Make sure Perkeso compliance is something your company is ready for. You can concentrate on what is important with Kakitangan your business. Learn more perkeso employer help information on What if an employer discovers a mistake in one of the government forms but has already submitted?.