KUALA LUMPUR: The country's largest employer and employee groups have welcomed the Social Security Organisation's (Perkeso) 24-hour coverage plan, describing it as a progressive move.
Malaysian Trades Union Congress (MTUC) president, Mohd Effendy Abdul Ghani, said the plan reflects a commitment to enhancing worker well-being by offering a robust safety net that extends beyond traditional coverage.
"By addressing the realities of modern work-life dynamics, such as flexible schedules, this initiative provides much-needed peace of mind to workers and their families," he told the New Straits Times.
"While it may involve additional contributions, the long-term benefits of greater security and stability for workers make this initiative a forward-thinking and necessary step."
Yesterday, deputy Perkeso chief executive officer of strategy and corporate, Edmund Cheong, said nearly nine million Malaysian workers could enjoy 24-hour coverage as early as the middle of next year.
Round-the-clock protection could be important for those in the private sector, as many workers cannot afford to rely on their retirement savings in the event of an injury or disability outside of work.
Effendy said the plan could significantly ease the financial and emotional burden of unexpected accidents or injuries.
However, Effendy said it was important to ensure that additional contributions are fair and do not disproportionately burden employers or employees.
Meanwhile, the Malaysian Employers Federation (MEF) said the 24-hour coverage plan should ease the process of claiming benefits for an accident.
Its president, Datuk Dr Syed Hussain Syed Husman, said the extension would eliminate the complex and often cumbersome task of determining whether an injury is work-related.
"MEF is of the view that the 24-hour coverage should also come with the policy of 'no-fault claim'.
"Under 'no-fault claim', Perkeso should pay for benefits without examining the causes of such injury," he said.
Syed Hussain also said that additional contributions towards the 24-hour coverage should be phased in gradually, with increases starting at 0.5 per cent and eventually rising to 1.25 per cent.
This gradual approach, he said, would help ease the financial burden on employees.
Under the existing scheme, he said, employers are required to contribute 1.25 per cent of monthly wages toward the agency.