Invalidity Scheme
An Insured Person shall be considered as suffering from invalidity by reason of specific morbid condition of permanent nature either incurable or is not likely to be cured and no longer capable of earning, by work corresponding to his strength and physical ability, at least 1/3 of the customary earnings of a sound Insured Person.
The scheme provides 24-hour coverage to employee who suffers from invalidity or death due to any cause and not related to his employment.
Benefits Under Invalidity Scheme :
- Invalidity Pension
- Invalidity Grant
- Constant-attendance Allowance
- Survivors’ Pension
- Funeral Benefit
- Facilities for Physical / Vocational Rehabilitation and Dialysis
- Education Benefit
Invalidity Pension
Invalidity Pension is :
- Payable to the eligible insured persons who have been certified invalid by the Medical Board or Appellate Medical Board.
- Payable from the date Notice of Invalidity is received or from the employee’s resignation date if he / she resigns after the Notice of Invalidity is received by Organisation.
- Payable as long as the employee is invalid or until death.
- Replaced by Survivors’ Pension if the Invalidity Pension recipient dies, regardless of his / her age.
Qualifying Conditions
- Not attained 60 years of age at the time Invalidity Notice is received; or
- In the event that the employee exceeded 60 years of age (with effective from 1 January 2013) at the time the Invalidity Notice is received, he/she must show evidence of :
- Suffering from a specific morbid condition of permanent nature.
- Incapable of engaging in any substantially gainful activities.
- A morbid condition that has set in before attaining 60 years of age and has not been gainfully employed since then.
- Certified invalid by the Medical Board or Appellate Medical Board.
- Fulfills the qualifying contribution conditions either full or reduced qualifying period.
Full Qualifying Period
Insured Persons are deemed to have fulfilled the qualifying period for full contribution if :
- Their monthly contribution has been paid for at least 24 months within a period of 40 consecutive months prior to the month in which their Invalidity Notice is received by SOSCO; or
- Their monthly contribution has been paid for not less than 2/3 of the complete months comprised between the date when contribution first become payable and the Invalidity Notice is received by SOCSO (the total number of monthly contributions that has been paid within that period must be at least 24 months).
Invalidity Pension Rate
The rate of Invalidity Pension for full qualifying period is from 50% to 65% of the average assumed monthly wage subject to a minimum pension of RM475 per month.
The Insured Persons are entitled to receive a pension at the rate of 50% of the average assumed monthly wage, increase by 1% for every 12 months contributions that are paid in excess. However, the rate of monthly pension shall not in any case exceed 65%.
Example of Calculations For Full Qualifying Period
- Monthly contribution have been paid not less than 24 months within 40 months
Date of joining the scheme > 01/03/2012
Date of Notice of Invalidity received > 01/07/2015
40 consecutive months preceding
the month of Notice received > 03/2012–06/2015
Based on the above example, employees are eligible to receive a pension at a rate of 50% of their average assumed monthly wages. - Monthly contribution have been paid not less than 2/3 of the number of complete months when contribution first become payable
Date of joining the scheme > 01/07/1999
Date of Notice of Invalidity received > 01/01/2015
Number of monthly contributions for
July 1999 to December 2014 > 186 months
2/3 monthly contributions paid > 2/3 x 186 months = 124 contributions
Based on the example, employees are eligible to receive a pension at the rate of 59% of the average assumed monthly wage based on the following calculation :
Reduced Qualifying Period
The rate of Invalidity Pension for reduced qualifying period is 50% of the average assumed monthly wage subject to a minimum pension of RM475 per month.
Insured Person are deemed to have fulfilled the reduced qualifying period if :
- Their monthly contribution have been paid for not less than 1/3 of the complete months comprised between the date when contribution first become payable and the Notice of Invalidity is received by Organisation
- The total number of monthly contributions that has been paid within that period must be at least 24 months
Example of Calculations For Reduced Qualifying Period :
- Monthly contribution have been paid not less than 1/3 of the number of complete months when contribution first become payable
Date of joining the scheme > 01/07/1999
Date of Notice of Invalidity received > 01/01/2015
Number of monthly contribution for
July 1999 to December 2014 > 186 months
1/3 monthly contributions paid > 1/3 x 186 months = 62 contributions
Based on the above example, employees are eligible to receive a pension at the rate of 50% of the average assumed monthly wage.
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