Self-employed

The Self-Employment Social Security Scheme was introduced to provide protection for individuals who are self-employed under the provisions of the Self-Employment Social Security Act 2017.

In the beginning, this scheme is compulsory for the self-employed in the Passenger Transportation Sector which are taxi, e-hailing and bus drivers under the provisions of the Self-Employment Social Security Act 2017, which took effect on 1 June 2017.

Effective from 1 January 2020, the coverage of the scheme was extended to 19 other sectors, making it 20 sectors covered by the scheme.

The coverage for self-employed individuals contributing to the scheme starts from the date and time the contribution is paid and recognised on the contribution payment receipt.

Self-employed Sectors

Passenger Transportation Sector
Good or Food Transport
Agriculture
Livestock
Forestry
Fisheries
Food
Construction
Manufacturing
Hawkers
Accomodation Premises
Online Business
Information Technology
Data Processing
Agents
Professional Services
Support Services
Arts
Household Services
Beauty and Healthcare

Eligibility

Malaysian citizen / permanent resident without age limit.
Individuals who work for themselves to earn a living.

Required Documents

Photocopy of identity card (IC)
Copy of driving licence / e-hailing profile / permit / certificate or letter of confirmation from the relevant association or agency subject to the type of sector.

Self-employed Protection Scheme

This Scheme provides protection for self-employed insured persons against employment injuries including occupational diseases and accidents during work-related activities. Self-employment injury means personal injury to self-employed insured person caused by an accident or an occupational disease arising out of and in the course of his or her self-employment activity including while travelling for the purpose of his or her self-employment activity.

Occupational disease is a disease caused by or arising from any occupation specified in the Fifth Schedule of the Employees’ Social Security Act 1969. This scheme provides cash benefits to the insured persons and their dependants besides medical treatment, physical rehabilitation and vocational training.

Benefits provided by PERKESO :

Medical Benefit

Self-employed injury or occupational disease may receive free medical treatment at PERKESO’s panel clinics/government hospitals; or
Self-employed insured persons can claim for reimbursement of expenses incurred in getting medical treatment at PERKESO’s non-panel clinics
Application can be made to PERKESO and the reimbursement is subject to such conditions as determined by PERKESO or according to the Fees Act 1951.

Temporary Disablement Benefit

Temporary Disablement Benefit is paid for the period the self-employed insured person is on medical leave certified by a doctor for not less than (4) days including the day of accident.
Medical certificate (mc) is required.
The minimum rate is RM 30.00 per day while the maximum rate is RM 105.33 per day

Permanent Disablement Benefit

Self-employed insured person who suffer from permanent disability due to self-employment injury can apply for this benefit.
The rate of Permanent Disablement Benefit is 90% of the selected insured monthly earning.
Example of calculation of Permanent Disablement Benefit (lump sum payment) - if the assessment is 20%, the age factor is 8873 (below 20 years of age) and the contribution is RM 592.80.
= (RM 3,950 X 90% - 30 Days) x 20% x 8873
= RM 210,290.10

Constant-attendance Allowance

This allowance is paid to the self-employed insured person who is suffering from total permanent disablement as a result of self-employment injury and is so severely incapacitated as to constantly require the personal attendance of another person, certified by Medical Assessor or the Appellate Medical Board.
The allowance is fixed at RM 500 per month.

Dependants' Benefit

If a self-employed insured person dies as a result of self-employment injury, his dependant/dependants shall be entitled to Dependants’ Benefit. A payment of 90% from selected insured monthly earning.
Eligible dependants: Widow or widower and children under 21 years old. If there are no widow, widower or child :
a) Parents; or
b) Brothers or sisters below 21 years old; or
c) Grandparents
Widow/widower,parents,grandparents receive lifetime benefits. Children are eligible to receive the benefit up to age 21 or until they get married (whichever occurs earlier). If the child is studying in an institution of higher learning, he/she will receive the benefit until the completion of the first degree or he/she gets married (whichever occurs earlier).
The calculation of the Dependants' Benefit is shown below:

Facilities for Physical or Vocational Rehabilitation

Physical rehabilitation and vocational rehabilitation are provided free of charge
Physical rehabilitation includes physiotherapy, occupational therapy, reconstructive surgery, supply of prosthetics, orthotics and other appliances, supply of orthopaedics apparatus such as wheelchair, crutches, hearing aids, spectacles, special shoes and others
Vocational rehabilitation include courses such as in sewing, radio repair and others.

Funeral Benefit

Funeral Benefit will be paid to the eligible person if the self-employed insured person dies as a result of self-employment injury or while receiving periodical Permanent Disablement Benefit. The amount paid will be the actual amount incurred or RM3,000 (effective from 1 June 2024) whichever is lower.

Education Benefit

This benefit is in the form of loans that may be provided to a dependant child/children of self-employed insured person who dies as a result of self-employment injury or while receiving periodical payments of Permanent Disablement Benefit.