KUALA LUMPUR: The Social Security Organisation (Perkeso) has implemented a cost of living adjustment for all recipients of periodic benefits and increased the minimum pension rate under its disability scheme, which took effect on Jan 1.
Its chief executive, Datuk Seri Dr Mohammed Azman Aziz Mohammed, said the implementation of both initiatives under the Workers Social Security Act of 1969 (Act 4) was expected to benefit more than 456,000 Perkeso benefit recipients.
Azman said those who would benefit were benefit recipients under the Workers' Disaster Scheme and the pension scheme under Act 4, such as the permanent disability benefit, dependent's benefit, and disability and retirement pension.
He said the adjustment for the periodic benefits and pensions paid out to benefit recipients would help them deal with the rise in the cost of goods and services.
"The initiative in adjustment for cost of living for periodic benefit recipients and the increase in the minimum pension rate are an extension of the 11th Actuarial Valuation Study by the International Labour Organisation.
"It took into account the current social and economic conditions in Malaysia and the impact brought about by the Covid-19 pandemic, the rising cost of living and the increase in the inflation rate.
"Both of these measures will involve a cost of RM234 million," he said in a statement today.
Azman also said the adjustment in cost of living for Perkeso's periodic benefits was expected to benefit more than 400,000 recipients with a cost of RM213 million.
"Since 1977, there have been 12 adjustments in the cost of living for Perkeso's periodic benefit payments under the Workers' Disaster Scheme and 10 adjustments under the disability scheme."
He said the cost of living adjustment rate for Perkeso's periodic benefit recipients effective Jan 1 was between 0.7 per cent and 9.4 per cent, according to the accrued date.
"The adjustment percentage for the accrued pension before 2015 is 9.4 per cent, accrued pension for 2016 (6.2 per cent), accrued pension for 2017 (2.3 per cent), accrued pension for 2018 (1.3 per cent) and accrued pension for 2019 (0.7 per cent)."
Azman said the minimum pension rate under the disability scheme had been increased from RM475 to RM550 a month.
"The increase in the minimum pension rate will benefit about 56,000 recipients and help them deal with the rise in cost of living. This increase will cost about RM21 million.
"Perkeso hopes the two initiatives will ease the financial burden, bring about harmony and fulfil the socio-economic needs of benefit recipients."