SOCSO on track to exceed RM9.17 billion contribution target as claims and payouts rise | Malaysia

SOCSO on track to exceed RM9.17 billion contribution target as claims and payouts rise
July 24, 2026

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SOCSO on track to exceed RM9.17 billion contribution target as claims and payouts rise | Malaysia

THE Social Security Organisation (SOCSO) expects annual contribution collections across all schemes under its administration to exceed its original RM9.17 billion target this year, reflecting expanding social security coverage and improved compliance among employers and employees.

SOCSO chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed said the steady rise in collections demonstrates growing awareness of social protection obligations while supporting the organisation’s efforts to extend coverage to a broader segment of the workforce.

He said SOCSO collected RM8.65 billion in contributions last year, a significant increase from RM7.52 billion in 2024. At the same time, expenditure on benefits and compensation has also risen in line with the increasing number of contributors and workplace-related risks.

“The compensation most frequently claimed and accounting for the highest payouts is Survivors’ Pension under the Employees’ Social Security Act 1969 (Act 4), or LINDUNG Pekerja, as well as benefits under the Housewives’ Social Security Act 2022 (Act 838), or LINDUNG Kasih,” he told BH.

Mohammed Azman said road accidents involving employees travelling to and from work remain one of the largest contributors to claims under the Employment Injury Scheme.

Commuting accident claims increased from 42,265 cases in 2024 to 46,541 in 2025, while 16,183 cases had already been recorded as of April this year.

To meet growing rehabilitation needs, he said the Sultan Nazrin Shah SOCSO Rehabilitation Centre in Bandar Meru Raya, Ipoh, began phased operations on July 22.

A second rehabilitation centre in Merang, Setiu, is expected to be completed in April 2027, while plans are also being developed for a similar facility in Penang.

Meanwhile, the manufacturing sector continued to record the highest number of workplace accident claims between 2024 and April this year. SOCSO also noted a rise in claims involving cardiovascular diseases and cancer.

“Looking at the trend of workplace accidents and the increasing number of critical illness cases, SOCSO recommends and urges eligible workers, particularly those aged 40 and above, to undergo free health screening through the Health Screening Programme (HSP).

“Early detection of non-communicable diseases (NCDs) is not only a life-saving measure but also helps workers maintain their physical capability and productivity, ensuring their continued livelihood and the wellbeing of their families,” he said. – July 24, 2026

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