(Kuala Lumpur, 9th) Human Resources Minister V. Sivakumar said that although the “24-hour Protection Plan” (LINDUNG 24) introduced by the Social Security Organization has shifted to a voluntary participation model, this does not apply to foreign workers.
He said that foreign employees are still required to pay the premium and this will continue to be enforced under existing laws.
In a statement today, he said that the Cabinet made the decision after considering public feedback on the implementation of the plan.
“Local employees can now choose whether or not to pay into the LINDUNG 24 scheme according to their own needs and considerations.
“Details regarding the voluntary participation mechanism and procedures for local employees will be announced by the Social Security Organization soon.”
The Cabinet decided yesterday that the LINDUNG 24 scheme will no longer compulsorily deduct 0.75% of employees’ monthly salaries, and will instead be implemented on a voluntary basis, effective immediately.
Sivakumar said that although the plan is now voluntary for local employees, it remains an important initiative, offering social protection for employees in the event of accidents outside of working hours and working premises, including during daily activities.
In light of this, he said, the ministry will review the implementation mechanisms of the plan before the end of this year, including its policy direction, effectiveness of execution, and fund sustainability, to ensure LINDUNG 24 continues to benefit the people.
“If necessary, the findings will be submitted to Parliament, in order to propose amendments to the Employees Social Security Act 1969 (Act 4).”
The Social Security Organization also stated that it will continue to raise public awareness of the scheme and the importance of social protection.