Page 61 - BPAReport

66. In addition, Malaysia has recently ratified the Equality of Treatment (Accident
Compensation) Convention 1925 (No. 19) and Conference Committee on Application of
Standards under the International Labour Organisation.

67. Accordingly the government has declared that beginning January 2019, employers
who hire foreign workers with valid documents including expatriates must register these
workers with SOCSO and contribute to the Employment Injury Scheme under the Employees
Social Security Act 1969. Benefits under this scheme include Medical Benefits, Temporary
Disablement Benefits, Permanent Disablement Benefits, Constant – Attendance Allowance,
Dependant’s Benefit and Rehabilitation and Repatriation Cost including funeral expenses.
The benefits will not include coverage provided by the Invalidity Pension Scheme. The
SOCSO Scheme in the present form will not cover hospitalisation and medical expenses for
matters that do not arise from the workplace or in the course of travelling to and from work.

68. It is recommended that an Insurance Scheme for Medical expenses outside the
SOCSO Scheme be introduced for foreign workers. The scheme should also cover outpatient
treatment. The Committee recommends that the employers should pay for this coverage.
Access to EPF Scheme and Employment Insurance Scheme (EIS)

69. The Independent Committee recommends that it should be mandatory for employers
and PKLS workers to participate in the Employers Provident Fund (EPF) scheme or similar
pension saving-type funds. This is particularly relevant where the PLKS worker duration of
service may potentially be up to 10 years or beyond. The Committee recommends that the
contributions by foreign workers and employers be at the same rate as paid by Malaysian
workers and employers for Malaysian workers.

70. The Independent Committee further recommends that foreign workers be included in
the Employment Insurance Scheme (EIS)

71. The Independent Committee notes with concern the recent proposal to deduct 20% of
the foreign workers wages and for the said sum to be channelled to SOCSO. The deducted
sum would be returned to the foreign workers when they leave Malaysia. The ostensible
reasons stated are to ensure that foreign workers will have savings to be taken back when
they have completed their contract work here; and to prevent foreign workers from
absconding. This proposal would be discriminatory to foreign workers vis a vis Malaysian
workers who would not be subjected to the same deduction to ensure savings and to prevent
absconding.

Portability of SOCSO, EPF benefits and payments

72. The global Compact on Migration to achieve its goal of “safe, orderly and regular
migration” has proposed several actionable commitments including calling upon states to
“establish mechanism for the portability of social security entitlements and earned benefits.
The Independent Committee recommends that as the Government has proposed that foreign
workers be covered under the SOCSO Scheme and the Committee has proposed that the EPF

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