Nation

Govt committed to providing safety net for retired private sector workers

KUALA LUMPUR: The government is committed to ensuring that private sector workers will have access to a safety net upon reaching retirement age.

Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad said this was necessary as many Social Security Organisation (Perkeso) contributors did not have a safety net once they retired.

He, however, added that the ministry's focus is first to amend the Social Security Act 1969 to provide coverage for non-employment-related injuries under Perkeso.

He also said the government, in principle, had agreed to amend the Act following a cabinet meeting in March this year.

"We know that by 2030, there will be a 15 per cent increase in the elderly population, as outlined in the Human Policy Framework 2025-2030.

"For workers aged 60 and above who are still employed in the formal sector, they are eligible for protection under the Employment Injury Scheme (of Perkeso).

"This means that matters outside of work will also be covered, and this has been agreed upon by the cabinet.

"Hence, we hope that the Act will be amended through the cabinet and presented again at the next Dewan Rakyat session," he said during the minister's question time in Dewan Rakyat today.

He said this in response to a supplementary question from Datuk Seri M. Saravanan (BN-Tapah), who enquired about the government's efforts to provide a safety net for private sector workers after retirement age.

In terms of the Invalidity Scheme (Skim Ilat), Rahman added that there was no age limit set by Perkeso for insured individuals to submit employment insurance claims.

He added that this would provide some flexibility for insured individuals to claim their rights for insurance protection.

"The age limit for eligibility for Perkeso benefits such as the Invalidity Pension and Survivors' Pension (Pencen Penakat) remains at age 60.

"The amendment to raise the eligibility age limit from 55 years to 60 years was implemented by Perkeso in 2013, in line with the Minimum Retirement Age Act 2012," he said.

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