Malaysian workers who no longer wish to contribute to PERKESO's LINDUNG 24 Jam scheme can officially opt out starting Monday, 13 July. However, before making that decision, it's important to understand what you'll be giving up.
Employees who choose to withdraw from the scheme will no longer be protected for accidents, injuries or deaths that occur outside of working hours, including during weekends, public holidays and personal time.
The opt-out option is only available to Malaysian employees. Contributions for foreign workers will remain compulsory.
If you decide to opt out, here's what you need to do:
1. Visit the LINDUNG 24 Jam portal and complete the online liability waiver declaration form - LINK
2. Inform your employer's Human Resources or Payroll department so they can stop future salary deductions.
Once the declaration is submitted, PERKESO Group Chief Executive Officer Dato' Sri Dr Mohammed Azman Aziz Mohammed said neither PERKESO nor the employer will be responsible for any claims involving accidents, injuries or deaths that happen outside working hours.
"This means accidents, injuries and deaths that occur outside working hours will not receive any protection. Therefore, do not hold PERKESO or your employer responsible after opting out," he said during a press conference at Menara PERKESO.
The liability waiver confirms that employees understand they will no longer be entitled to benefits under the scheme for incidents that occur during their personal time.
The decision to make LINDUNG 24 Jam voluntary for local workers follows a recent Cabinet meeting after feedback was received regarding the implementation of the scheme. Unity Government spokesperson Datuk Fahmi Fadzil said the matter was raised by Prime Minister Datuk Seri Anwar Ibrahim, leading to the policy change with immediate effect.
Previously, more than nine million contributors under the Employees' Social Security Act 1969 (Act 4) were automatically covered under the expanded protection, which came into effect on 1 June.
Although workers are now free to opt out, PERKESO is encouraging Malaysians to remain in the scheme.
According to Mohammed Azman, LINDUNG 24 Jam provides financial protection and income replacement if an employee is involved in an accident outside working hours. He added that the monthly contribution is relatively affordable compared to many private insurance plans and should be viewed as an important safety net rather than an additional financial burden.
Accidents can happen anytime, not just while you're at work. Before deciding to opt out, employees are encouraged to carefully consider whether giving up round-the-clock protection is worth the savings.
Source : Sinar Harian ,
Image Credit : The Malaysian Reserve