What steps will Socso take before imposing compounds on employers?

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Socso to Issue Compliance Notices Before Imposing Compounds on Employers

Before imposing any compounds, the Social Security Organisation (Socso) will first issue compliance notices to employers. These notices are intended to provide employers with an opportunity to undertake corrective actions regarding their reporting obligations for job vacancies. This approach prioritises education and compliance within the employment ecosystem.
Progressive Penalty Structure for Non-Compliance

Amendments to the Employment Insurance System (Amendment) Bill 2025 have introduced a progressive penalty structure for employers who fail to notify Socso of job vacancies. This system starts with a fine of up to RM1,000 for a first offence, increasing to RM3,000 for a second offence, and up to RM5,000 for a third or subsequent offence. This structure was developed after considering feedback from employers during engagement sessions.
Emphasis on Education and Guidance

The amended bill places a significant emphasis on educating employers and fostering compliance. Socso will continue to conduct guidance and engagement sessions to assist employers in meeting their reporting requirements. This educational approach aims to ensure a more organised employment landscape by helping businesses understand and adhere to the necessary procedures.
Feedback Incorporated into Amendments

The amendments have taken into account feedback gathered from employers through various nationwide engagement and advocacy sessions conducted by Socso. As a direct result of this feedback, the maximum fine was reduced from an initial proposal of RM10,000 to the current progressive structure, with the penalty for a first offence revised to RM1,000. This demonstrates a balance between enforcement and the operational realities faced by businesses.

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What steps will Socso take before imposing compounds on employers?

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