Malaysia Parliament passes amendment to Social Security Act, enabling 24/7 protection for 9.6mn workers
Author style
Punchy: This is a clear policy shift — wide-reaching and immediate in effect for formal-sector workers. If you handle HR, benefits or employment law in Malaysia, the detail matters.
Summary
Malaysia’s Dewan Rakyat has approved the Employees Social Security Act (Amendment) Bill 2025 (Act 4), introduced by YB Steven Sim Chee Keong and championed by the Ministry of Human Resources (KESUMA). The amendment creates a new 24/7 protection scheme under the Social Security Organisation (SOCSO), extending accident protection to formal workers round the clock regardless of when or where an accident occurs.
More than 9.6 million active contributors in the formal sector are expected to benefit. The reform removes the previous need to prove an accident occurred during working hours — a change prompted in part by 12,306 claims rejected between 2023 and October 2025 for being classified as non-work-related. Core SOCSO benefits (medical care, temporary and permanent disability benefits, dependant support, rehabilitation, funeral benefits and educational loans) remain available under the expanded coverage. KESUMA says implementation will be closely monitored for transparency and timely delivery.
Key Points
- Parliament approved the Employees Social Security Act (Amendment) Bill 2025, introducing Act 4.
- SOCSO will operate a 24/7 protection scheme covering accidents at any time or place for formal workers.
- Approximately 9.6 million active formal-sector contributors will gain the expanded protection.
- The amendment removes the requirement to prove accidents happened during working hours, addressing previously rejected claims (12,306 rejections from 2023 to Oct 2025).
- Existing SOCSO benefits remain: medical care, FHUS (Temporary Disability), FHUK (Permanent Disability), FOT (Dependent’s Benefit), ELS (Constant Service Allowance), FPM (Funeral Management), rehabilitation and educational loan facilities.
- KESUMA emphasises monitoring, transparency and timely delivery of benefits during rollout.
Context and relevance
Why this matters: the amendment recognises modern labour realities — hybrid, flexible and remote working have blurred the line between work and personal time. Extending 24/7 coverage aligns Malaysia’s social protection closer to standards in more developed jurisdictions and reduces the risk of workers being left uncompensated for out-of-hours accidents.
Implications for employers and HR teams include updated compliance obligations, potential changes to corporate insurance and risk assessments, and likely shifts in claims patterns and costs. For employees it reduces financial exposure from injuries outside conventional working hours — important in a market where only around 42% of workers reportedly have personal accident insurance or takaful.
Why should I read this?
Short and blunt: if you employ people in Malaysia or advise on benefits, this changes the game. It affects liability, payroll/benefit design and claims handling — so skim the highlights now and dig into the detail if you deal with workplace policy, insurance or compliance.