(TAX UPDATE) 2025 SOCSO (PERKESO) SKSPS Updates for Self-Employed

(TAX UPDATE) 2025 SOCSO (PERKESO) SKSPS Updates for Self-Employed

Dear Valued KTP Clients,

We are writing to keep you informed about the latest changes to the Social Security Organisation (SOCSO/PERKESO) SKSPS scheme, which directly impacts self-employed individuals in Malaysia.

Please review the key updates below to ensure you remain compliant and maximize available benefits.

1. Expanded Mandatory Coverage (Effective 2025)

Starting in 2025, the SKSPS scheme will require a wider group of self-employed individuals to register.
Previously, only those in the passenger transport sector (e.g., e-hailing, taxi, and bus drivers) were required. Now, coverage extends to approximately 20 sectors, including:

  • Goods and food delivery

  • E-commerce sellers

  • Professional service providers

  • Agriculture, manufacturing, and construction

  • Hawkers, household services, and medical rehabilitation workers

All self-employed individuals in these sectors must register to avoid penalties.

2. Government Subsidy Schemes (2025 Incentives)

To support self-employed individuals, the government is offering several subsidy options:

  • Matching Subsidy:

    • For farmers, hawkers, e-hailing drivers, platform riders, and more (13 categories).

    • Government covers 70% of the annual contribution.

    • Individuals pay only about RM70 per year (previously RM232.80).

  • SPS Madani Full Subsidy:

    • For volunteers, religious/community rehabilitation workers, etc.

    • Government pays 100% of the premium for 12 months.

  • Minimum Premium for Passenger Transport:

    • E-hailing and taxi drivers pay only RM23.30 for 12 months of coverage (government covers 90%).

3. Comprehensive Protection for All Self-Employed

All registered self-employed individuals are entitled to:

  • Medical benefits (treatment at PERKESO panel clinics or government hospitals)

  • Temporary disablement allowance (RM30–RM105.33 per day for sick leave of 4 days or more)

  • Permanent disablement lump sum (90% of insured monthly income × degree of disability)

  • Constant attendance allowance (RM500/month if full-time care is required)

  • Dependant’s benefit (90% of insured income per month for spouse and children)

  • Funeral benefit (up to RM3,000 from June 2024)

  • Rehabilitation services (physical and vocational training, prosthetics, physiotherapy)

  • Education benefit (study loans or grants for children of the deceased)

4. Action Steps

  • If you are self-employed in any of the listed sectors, register for SKSPS as soon as possible to avoid fines of up to RM10,000.

  • Take advantage of government subsidies to minimize your costs while securing comprehensive protection.

So far, there has not been active enforcement of the new mandatory SKSPS contributions for the expanded self-employed sectors, as the requirement only takes effect from January 1, 2025.

For licensed hawkers and traders, the regulation was gazetted in August 2024, with a four-month transition period to allow for awareness and voluntary compliance. During this transition, SOCSO is focusing on education and outreach rather than penalties.

Enforcement actions, such as fines for non-compliance, are expected to begin after the transition period ends in January 2025. SOCSO has stated that all hawkers and traders with the relevant licenses or approvals will be required to contribute, and the agency will work with local authorities to ensure compliance. For other sectors, enforcement will follow as the mandatory requirement comes into effect.

In summary, while the groundwork for enforcement is being laid and awareness is being raised, strict enforcement and penalties have not yet started but are expected after January 1, 2025.

Apply here: https://prihatin.perkeso.gov.my

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