How many Socso recipients will benefit from cost of living adjustments?

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Over 400,000 Socso Recipients to Benefit from Cost of Living Adjustments

Effective January 1, 2023, the Social Security Organisation (Socso) will implement adjustments to the cost of living for existing recipients of scheduled benefits. This initiative is anticipated to benefit more than 400,000 individuals, reflecting considerations of current economic conditions, a higher cost of living, and inflation rates post-pandemic. The total estimated expenditure for these adjustments is RM213 million.
Basis for Adjustments

The adjustments are guided by the International Labour Organisation’s (ILO) 11th Actuarial Assessment Study. This assessment takes into account contemporary social and economic circumstances in Malaysia, alongside the increased cost of living and inflation observed following the Covid-19 pandemic.
Scope of Affected Benefits

The Socso benefits slated for these adjustments include periodic payments such as Invalidity Pension and Survivors’ Pension under the Invalidity Scheme, as well as Permanent Disablement and Dependants’ Benefits under the Employment Injury Scheme. These fall under the purview of the Employees Social Security Act 1969.
Historical Precedent for Adjustments

Socso has a history of implementing cost of living adjustments for its regular benefit payments. Prior to the 2023 adjustments, such changes had been made ten times under the Invalidity Scheme since 1982 and twelve times under the Employment Injury Scheme since 1977. The current adjustment rate for the cost of living ranges between 0.7 per cent and 9.4 per cent, varying based on the year an individual began receiving their pension.

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How many Socso recipients will benefit from cost of living adjustments?

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