PERKESO Raises Concern As Nearly Half Of 'LINDUNG 24 Jam' Scheme Opt-Outs Earn Below RM3,500

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Social security is meant to be a safety net for when the unexpected happens, but recent data has raised serious concerns among officials regarding Malaysia’s lower-income workers.

According to the Social Security Organisation (PERKESO), nearly half of the employees who chose to opt out of the Non-Employment Injury Scheme (LINDUNG 24 Jam) are individuals earning below RM3,500 a month.

12.4% total opt-out rate by August deadline

According to Kosmo!, PERKESO Group Chief Executive Officer Datuk Seri Dr Mohammed Azman Aziz Mohammed revealed at a press conference today (September 9) that 12.4% of workers decided not to continue with the 24-hour protection scheme following the opt-out deadline on August 31.

Out of that 12.4%, almost 50% fall into the lower-income bracket earning under RM3,500.

Selangor, KL, and Putrajaya record highest opt-out numbers

Geographically, urban economic hubs accounted for the majority of the opt-outs. Selangor, Kuala Lumpur, and Putrajaya made up a massive 53% of those who left the scheme. Meanwhile, Johor accounted for 11%, Penang contributed 9%, and the remaining 27% came from other states.

Dr Mohammed Azman noted that many workers in major cities might falsely assume their private insurance policies are enough to cover them.

Over 9,000 workers have already re-enrolled

Despite the initial opt-outs, PERKESO noted a positive trend in recent days. Between September 1 and September 9, approximately 9,000 to 10,000 workers who previously opted out have already chosen to re-enrol in the 24-hour scheme.

PERKESO hopes to continue raising awareness so that lower-income workers remain fully protected around the clock, both on and off the job.

Also Read: Simpang Renggam Crash: PERKESO Extends Immediate Aid to Victims Under New ‘Lindung 24 Jam’ Scheme