Two things you should know if you’re an expat worker in Malaysia

Two major updates. The first is about insurance. One of the biggest insurance companies in Malaysia recently released a memo (not public) about countries that are sanctioned. We’re not sure whether the sanctions are at the national level in Malaysia or just for this one company. But here’s what you need to know.

What countries are sanctioned?
Not sure why they are sanctioned, whether by the Malaysian government or it is just the insurance company, which is one of the biggest in Malaysia. So, it is worth noting.

Countries with severe sanctions
Iran
Cuba
North Korea
Syria
Crimea

Countries with limited (less severe) sanctions
Somalia
Sudan
Belarus
South Sudan
Zimbabwe
Democratic Republic of Congo
Russia and
Ukraine

What this means and what to do
If you plan to get any form of insurance, maybe do it now. Expats from these countries are not completely banned from receiving insurance.

They will just require extra clearance before they can be approved. Not sure how they came up with the list either.

You won’t find this in the news anywhere, yet. Only if you go to try to get insurance.

The second is about SOSCO

What is SOSCO

Social Security Organization (SOCSO) is a government agency established to implement social security schemes and provide social security protection to employees and their dependents.

It currently only applies to Malaysian citizens and permanent residents. But starting on 1 January 2019, expats and foreign workers will be included too in line with the Equality of Treatment (Accident Compensation) Convention, 1925 (No.19) and Conference Committee on the Application of Standards under the International Labour Organisation (ILO).

What this means
You will need to contribute some of your monthly salary to the Employment Injury Scheme (EIS), which is like insurance. Your employer will also contribute some part of it.

The program provides insurance against work-related injuries. For instance, if you require treatment as a result of injuries suffered at work or in the line of duty (like going to work or coming back from work).

It also includes Medical Benefits, Temporary Disablement Benefits, Permanent Disablement Benefits, Constant Attendance Allowance, Dependants’ Benefits and Rehabilitation, an RM6,500 repatriation cost, and funeral costs. See more details here.

How much is it?
The contribution rate varies. But it ranges from 10 sens to RM19.75 for you (as an employee) and from 40 sens to RM69.05 for employers.

Contribution Rates

The actual monthly wage of the month

First Category (Employment Injury Scheme and Invalidity Scheme)

Second Category (Employment Injury Scheme)

Employer’s contribution

Employee’s contribution

Total Contribution

Contribution By Employer Only

1.

Wages up to RM30

40 cents

10 cents

50 cents

30 cents

2.

When wages exceed RM30 but not RM50

70 cents

20 cents

90 cents

50 cents

3.

When wages exceed RM50 but not RM70

RM1.10

30 cents

RM1.40

80 cents

4.

When wages exceed RM70 but not RM100

RM1.50

40 cents

RM1.90

RM1.10

5.

When wages exceed RM100 but not RM140

RM2.10

60 cents

RM2.70

RM1.50

6.

When wages exceed RM140 but not RM200

RM2.95

85 cents

RM3.80

RM2.10

7.

When wages exceed RM200 but not RM300

RM4.35

RM1.25

RM5.60

RM3.10

8.

When wages exceed RM300 but not RM400

RM6.15

RM1.75

RM7.90

RM4.40

9.

When wages exceed RM400 but not RM500

RM7.85

RM2.25

RM10.10

RM5.60

10.

When wages exceed RM500 but not RM600

RM9.65

RM2.75

RM12.40

RM6.90

11.

When wages exceed RM600 but not RM700

RM11.35

RM3.25

RM14.60

RM8.10

12.

When wages exceed RM700 but not RM800

RM13.15

RM3.75

RM16.90

RM9.40

13.

When wages exceed RM800 but not RM900

RM14.85

RM4.25

RM19.10

RM10.60

14.

When wages exceed RM900 but not RM1,000

RM16.65

RM4.75

RM21.40

RM11.90

15.

When wages exceed RM1,000 but not RM1,100

RM18.35

RM5.25

RM23.60

RM13.10

16.

When wages exceed RM1,100 but not RM1,200

RM20.15

RM5.75

RM25.90

RM14.40

17.

When wages exceed RM1,200 but not RM1,300

RM21.85

RM6.25

RM28.10

RM15.60

18.

When wages exceed RM1,300 but not RM1,400

RM23.65

RM6.75

RM30.40

RM16.90

19.

When wages exceed RM1,400 but not RM1,500

RM25.35

RM7.25

RM32.60

RM18.10

20.

When wages exceed RM1,500 but not RM1,600

RM27.15

RM7.75

RM34.90

RM19.40

21.

When wages exceed RM1,600 but not RM1,700

RM28.85

RM8.25

RM37.10

RM20.60

22.

When wages exceed RM1,700 but not RM1,800

RM30.65

RM8.75

RM39.40

RM21.90

23.

When wages exceed RM1,800 but not RM1,900

RM32.35

RM9.25

RM41.60

RM23.10

24.

When wages exceed RM1,900 but not RM2,000

RM34.15

RM9.75

RM43.90

RM24.40

25.

When wages exceed RM2,000 but not RM2,100

RM35.85

RM10.25

RM46.10

RM25.60

26.

When wages exceed RM2,100 but not RM2,200

RM37.65

RM10.75

RM48.40

RM26.90

27.

When wages exceed RM2,200 but not RM2,300

RM39.35

RM11.25

RM50.60

RM28.10

28.

When wages exceed RM2,300 but not RM2,400

RM41.15

RM11.75

RM52.90

RM29.40

29.

When wages exceed RM2,400 but not RM2,500

RM42.85

RM12.25

RM55.10

RM30.60

30.

When wages exceed RM2,500 but not RM2,600

RM44.65

RM12.75

RM57.40

RM31.90

31.

When wages exceed RM2,600 but not RM2,700

RM46.35

RM13.25

RM59.60

RM33.10

32.

When wages exceed RM2,700 but not RM2,800

RM48.15

RM13.75

RM61.90

RM34.40

33.

When wages exceed RM2,800 but not RM2,900

RM49.85

RM14.25

RM64.10

RM35.60

34.

When wages exceed RM2,900 but not RM3,000

RM51.65

RM14.75

RM66.40

RM36.90

35.

When wages exceed RM3,000 but not RM3,100

RM53.35

RM15.25

RM68.60

RM38.10

36.

When wages exceed RM3,100 but not RM3,200

RM55.15

RM15.75

RM70.90

RM39.40

37.

When wages exceed RM3,200 but not RM3,300

RM56.85

RM16.25

RM73.10

RM40.60

38.

When wages exceed RM3,300 but not RM3,400

RM58.65

RM16.75

RM75.40

RM41.90

39.

When wages exceed RM3,400 but not RM3,500

RM60.35

RM17.25

RM77.60

RM43.10

40.

When wages exceed RM3,500 but not RM3,600

RM62.15

RM17.75

RM79.90

RM44.40

41.

When wages exceed RM3,600 but not RM3,700

RM63.85

RM18.25

RM82.10

RM45.60

42.

When wages exceed RM3,700 but not RM3,800

RM65.65

RM18.75

RM84.40

RM46.90

43.

When wages exceed RM3,800 but not RM3,900

RM67.35

RM19.25

RM86.60

RM48.10

44.

When wages exceed RM3,900 but not RM4,000

RM69.05

RM19.75

RM88.80

RM49.40

45.

When wages exceed RM4,000

RM69.05

RM19.75

RM88.80

RM49.40

The First Category refers to employees who are less than 60 years old. Or those who are 55 years old and have never contributed to Sosco because of non-eligibility. The calculations for this is 1.74% from the employer and 0.5% from the employee.

The Second Category refers to employees aged 60 or older. The contribution rate is 1.25% of the employee’s wage paid by the employer.