SOCSO Social Security Quiz

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Questions and Answers

What is the primary objective of SOCSO?

To increase the wages of employees across all sectors.

To implement strict regulations for private employers.

To provide a comprehensive social security protection for Malaysians. (correct)

To reduce unemployment rates in Malaysia.

How often does SOCSO review the benefit structure of the social security scheme?

Annually

Monthly

Quarterly

Periodically (correct)

Who is classified as a principal employer under the SOCSO scheme?

An employer who provides benefits exclusively for high-earning employees.

An employer who oversees safety standards in a workplace.

An employer who directly hires and manages employees. (correct)

An employer who sub-contracts work to others.

What does the term 'immediate employer' refer to?

An employer who works for a principal employer and has direct control over employees. Signup and view all the answers

Which employees are mandated to contribute to SOCSO?

Employees earning a monthly wage of RM3,000 or less. Signup and view all the answers

Who must provide consent for an employee earning more than RM3,000 to be covered under SOCSO?

Both the employer and employee Signup and view all the answers

In which scenario must higher-earning employees continue to contribute to SOCSO?

If they have been registered and contributed previously. Signup and view all the answers

What is required from principal and immediate employers in terms of employee contributions?

They must register all employees and ensure contributions are paid. Signup and view all the answers

Which category of worker is exempted from coverage under SOCSO?

Domestic servants Signup and view all the answers

What is the principle behind the protection of employees covered under SOCSO?

Once registered, always covered Signup and view all the answers

What happens if an immediate employer cannot be located and employees are not registered?

The principal employer becomes liable for the contributions. Signup and view all the answers

At what age do employees stop being automatically covered under SOCSO, unless they continue being employed?

55 years old Signup and view all the answers

What constitutes the definition of wages for the purposes of SOCSO contributions?

All remuneration payable in money to an employee Signup and view all the answers

What type of insurance coverage must employers provide for their employees under SOCSO?

Compulsory coverage under SOCSO Signup and view all the answers

What type of payments are NOT considered as wages for SOCSO purposes?

Non-monetary benefits Signup and view all the answers

Which of the following is true about contributions to SOCSO for employees over the age of 55?

Only employers must contribute for continued coverage Signup and view all the answers

Study Notes

SOCSO Objectives

SOCSO aims to provide comprehensive social security protection for Malaysians and promote occupational health and safety.
Key initiatives include:
- Human resource development provisions.
- Periodic review of the social security benefit structure.
- Review of the benefit disbursement system.
- Secure funds through prudent financial and investment management.
- Encouragement of work safety and health among workers and employers.

Employer Definitions

Principal Employer: Directly employs individuals, responsible for wage payments and service matters.
Immediate Employer: Subcontracts part of work from the principal employer and has direct control over the employees.
Both employers must register and contribute monthly for all employees.
Principal employers are liable for ensuring all immediate employees are registered and that contributions are paid.

Employee Definitions

Defined under Social Security Act (1969) as individuals employed under a contract of service or apprenticeship.
Mandatory contribution to SOCSO if earning a monthly wage of RM3,000 or less.
Employees earning over RM3,000 must:
- Continue contributions if previously registered.
- Opt for coverage if newly earning over RM3,000 and not previously registered, with employer consent required.
Registration and contributions are mandatory for all employment statuses, including permanent, temporary, or casual.
Exemptions include:
- Government Employees
- Domestic Servants
- Self-Employed Persons
- Foreign Workers (since April 1, 1993)
Employees over 55 are still covered under the employment injury scheme if employed, with contributions solely from employers.

Wages Definition

Wages encompass all remuneration in money paid to an employee, which includes:
- Salary
- Overtime payments
- Commissions and service charges
- Leave payments (annual, sick, maternity, rest day, public holidays)
- Allowances (incentives, shift, food, cost of living, housing)
Payments made at hourly, daily, weekly, or task rates are classified as wages.
Certain payments are exempt from being classified as wages.

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Description

Test your knowledge on SOCSO's objectives and functions in providing social security protection for Malaysians. This quiz covers aspects such as human resource development, benefit structures, and financial management. Enhance your understanding of occupational health and safety initiatives.