KUALA LUMPUR: Employers will not be severely impacted by the increased employees' monthly salary ceiling for contributions, from RM4,000 to RM5,000 this month.
Social Security Organisation (Perkeso) chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said the impact of the new salary ceiling for contributions was minimal when compared with the expanded protections offred to employees or their next of kin.
The salary ceiling increase, he said, would enable the employees' next of kin to receive wider assistance to ensure continuity and sustainability of life in the event of untoward incidents.
"In my opinion, the new monthly salary ceiling limit for contribution purposes will not to employers.
"And based on our records and registry, most of the employers affected by the salary ceiling increase are multinational companies that are performing better compared with small and medium enterprises," he told reporters here today.
The new salary ceiling followed the amendment to the Employees Social Security Act 1969 and the Employment Insurance System Act 2017.
Azman said the increase in the salary ceiling would improve and expand social security coverage by increasing the existing benefits payment rate up to 25.3 per cent.
He said it was expected that 1.5 million workers or almost 19 per cent of the total Perkeso contributors across nationwide would benefit from the salary ceiling increase.
They include local and foreign workers.
At the press conference, Azman also explained how the increase was expected to affect employers and their employees.
"For example, employees earning RM5,000 and above monthly will see an increase in their Perkeso and Employees Insurance Scheme (EIS) contributions by RM22.60 following the amendment to Employees Social Security Act 1969.
"Similarly, contribution by employers for their employees earning RM5,000 and above will see an increase by RM4 to RM19.80 following the amendment to the Employment Insurance System Act 2017.
"This means the increase in the contribution under both Employees Social Security Act 1969 and Employment Insurance System Act 2017 for employees earning RM5,000 and above is RM26.60 compared to the amount they previously contributed prior to the amendment to both Acts," he said.