Why did the Cabinet shift Lindung 24 Jam to voluntary for locals?

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Cabinet Shifts Lindung 24 Jam to Voluntary for Local Workers After Considering Public Feedback

The Cabinet decided to make contributions to the Non-Employment Injury Scheme (Lindung 24 Jam) voluntary for local workers, with immediate effect, after reviewing public feedback on its implementation. This shift allows local employees to decide whether to contribute based on their personal needs and circumstances. Contributions to the Lindung 24 Jam Scheme will, however, remain mandatory for foreign workers.
Public Feedback Led to Voluntary Status for Locals

The decision to transition the Lindung 24 Jam scheme to a voluntary contribution model for local workers was a direct result of the Cabinet considering feedback received from the public regarding the scheme's implementation. This indicates a responsiveness to public sentiment concerning mandatory contributions for this specific insurance coverage.
Scheme Continues to Offer Protection

Despite the change to voluntary participation for local workers, the Lindung 24 Jam scheme is still considered a vital initiative. It provides social security protection for workers who experience accidents outside of their working hours and away from their workplace, encompassing daily activities. The scheme's core protective function remains, even with the change in contribution status for locals.
Review of Scheme Mechanisms Planned

The Human Resource Ministry has committed to a comprehensive review of the scheme's implementation mechanisms by the end of the year. This review will encompass the scheme's policy direction, its effectiveness in practice, and the long-term sustainability of its funding. Such an evaluation is intended to ensure the scheme continues to serve the public effectively.
Potential Legislative Amendments Under Consideration

The findings from the upcoming review may lead to proposed amendments to the Employees’ Social Security Act 1969 (Act 4). If deemed necessary based on the review's outcome, these proposed changes will be presented to Parliament. This suggests a potential for legislative adjustments to further refine the scheme's framework.

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Why did the Cabinet shift Lindung 24 Jam to voluntary for locals?

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