The Malaysian Cabinet has decided that contributions to the Social Security Organisation’s (PERKESO) Non-Workplace Accident Scheme, known as LINDUNG 24 Jam, will no longer be mandatory. Instead, participation in the scheme will now be voluntary with immediate effect.
Government spokesperson Datuk Fahmi Fadzil said the decision was made after Prime Minister Datuk Seri Anwar Ibrahim raised concerns and public feedback regarding the implementation of the contribution scheme during the Cabinet meeting.
Fahmi said the Cabinet agreed that the previously mandated contribution rate of 0.75 per cent of an employee’s monthly salary should no longer be compulsory. He added that the Ministry of Human Resources (KESUMA) will issue a detailed statement explaining the revised implementation of the scheme.
The decision marks a significant policy shift following public concerns over the compulsory nature of the contributions. The government said the move demonstrates its willingness to review policies based on feedback while maintaining efforts to strengthen social protection for workers.
Previously, more than nine million contributors covered under the Employees’ Social Security Act 1969 (Act 4) automatically received protection for non-workplace accidents beginning on June 1. The LINDUNG 24 Jam scheme was introduced through amendments to the Act to expand social security coverage for employees, including during public holidays and non-working hours.
Human Resources Minister Datuk Seri R. Ramanan had earlier said the scheme was fully funded through employee contributions and would be implemented in phases, subject to a monthly salary ceiling of RM6,000. Under the initial implementation, employees were required to contribute 0.75 per cent of their monthly wages, while employers were responsible for deducting the contributions from salaries and remitting them to PERKESO each month.
