KUALA LUMPUR: Over 300,000 Social Security Organisation (Socso) beneficiaries will receive an increase of up to 10 percent in payouts to help alleviate the rising cost of living.
Payment of arrears will be made from Dec 26 to former contributors who are getting payments from pension schemes under Socso or schemes for their dependents, from before 2015.
Human Resources Minister Datuk Seri Richard Riot said the adjustment rate would be as high as 10.4 per cent and as low as 1.2 per cent for the 328,056 beneficiaries.
“The different rates are due to the various pension payment received, where one may have received a higher payout compared to another in an earlier year,” said Riot in a press conference here.
He said the adjustments were in line with the 10th Actuarial Studies report, and this would be the first adjustment rate made since 2012.
The increase includes those who receive payments from the dependents’ benefit, permanent disablement benefit, invalidity pension and survivors’ pension schemes.
Pensioners will receive a different rate per year; 2011 and before (10.4 per cent), 2011 (8.3 per cent), 2012 (6.6 per cent), 2013 (4.4 per cent) and before 2014 (1.2 per cent).
Under the new adjusted rates, a total of RM72.62 million has been allocated for the payment of arrears for this year. “On top of that, they will be spending RM238million to pay out the arrear payments next year.
“Socso has already spent RM2.9 billion allocated for pensions in 2016 and, more than RM3 billion this year,” he said.
“This shows that the government through its agencies are concern for the people and are always on the lookout to find ways to help people to reduce their burdens,” said Riot.
Socso which was established in 1971 has more than 6.8 million contributors and since its establishment, the contribution rate per person had always been consistent.