SOCSO Lindung 24 Jam Opt-Out: What Malaysian Employers Must Do Now

If you run a kedai, F&B outlet, or small kilang, you may have heard that SOCSO Lindung 24 Jam is now voluntary. That is good news for flexibility, but it also creates a new admin task for you as an employer.

You cannot simply stop deducting contributions because a worker says they do not want to join. There is a proper process, and skipping it can expose your business to compliance issues.

Here is a clear, step-by-step guide on what to do.

What Is SOCSO Lindung 24 Jam?

Lindung 24 Jam is a SOCSO (PERKESO) scheme that provides workers with insurance coverage around the clock, not just during working hours. It covers accidents and death, similar to the Employment Injury Scheme but extended beyond the workplace.

Earlier plans made enrolment mandatory, but the government has since confirmed the scheme is voluntary. Workers who do not want to participate must submit a written exemption form. Without that form, contributions apply by default.

Why the Opt-Out Form Matters for Employers

As the employer, you are responsible for managing contributions through the PERKESO system. If a worker verbally tells you they want to opt out but does not submit the exemption form, you are still obligated to deduct and remit contributions on their behalf.

In short: no form, no opt-out.

This protects both parties. The worker has a documented record of their decision. You have proof you followed the correct procedure.

Step-by-Step: How to Manage the Opt-Out Process

Step 1: Inform Your Workers

Tell all affected staff about the scheme and their right to opt out. You can do this through a notice board, group chat, or team briefing. Keep it simple: explain what Lindung 24 Jam is, what it costs, and that they have a choice.

Step 2: Provide the Exemption Form

Workers who wish to opt out must complete the official exemption form from PERKESO. Direct them to the PERKESO website or nearest branch to obtain the current version. Do not create your own form, as only the official document is accepted.

Step 3: Collect and File the Completed Form

Once the worker fills in and signs the form, collect a copy for your HR records. Keep it filed with their employment documents. This is your evidence if PERKESO or a worker ever questions the deduction status.

Step 4: Update Your Payroll Accordingly

Only after receiving the signed exemption form should you stop the Lindung 24 Jam contribution for that worker. Update your payroll system or records to reflect the change from the correct effective date.

Step 5: Keep Monitoring

Workers who initially opted out may change their mind later. Build a simple tracker so you know which staff are enrolled and which have exemptions on file. Review it whenever you onboard new staff or when PERKESO issues updates.

Worked Example

Ahmad runs a small construction firm in Selangor with 12 workers. Two of his workers, Ravi and Zulkifli, tell him they do not want Lindung 24 Jam.

Ahmad prints the PERKESO exemption form for both of them. Ravi fills it in and returns it the next day. Zulkifli says he will do it later but never submits the form.

For the following month's payroll, Ahmad continues deducting Lindung 24 Jam contributions for Zulkifli because no form has been received. Only Ravi's deduction is stopped, and Ahmad files Ravi's form in his HR folder.

If Zulkifli later complains that money was taken from his salary, Ahmad can show the process was followed correctly and that the deduction stopped only when the form was submitted.

Contribution amounts vary depending on the worker's wage and scheme structure. Always check the latest PERKESO notice for current rates before updating your payroll.

Common Mistakes to Avoid

Stopping contributions based on verbal agreement only. A conversation is not enough. You need the signed form.

Using an unofficial opt-out letter. Only the PERKESO exemption form is valid. A letter you draft yourself does not count.

Not keeping a copy of the form. If you pass the original to PERKESO, make sure you retain a copy for your own records.

Forgetting to update payroll on the correct date. The opt-out takes effect from a specific date. Backdating without proper documentation can cause issues.

StaffE helps SME employers track which staff are enrolled or exempted, so your payroll stays clean and your records are always audit-ready.

FAQ

Q: Is every worker required to opt out, or only certain categories?

A: The opt-out process applies to workers who are covered under the Lindung 24 Jam scheme and wish to exit. If you are unsure whether a specific worker category is included, check the latest PERKESO notice or contact your nearest PERKESO branch.

Q: What happens if I accidentally stop contributions without a form?

A: You may be considered non-compliant with SOCSO regulations. Reinstate the deduction immediately and document the error. If there is a shortfall, PERKESO may require back payment. Consult PERKESO directly for guidance on your specific situation.

Q: Can a worker who opted out re-enrol later?

A: Yes, workers can choose to re-enrol. The process for re-enrolment may differ from the opt-out process. Direct the worker to PERKESO for the correct steps, and update your payroll records once re-enrolment is confirmed.