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Minister Datuk Seri M. Saravanan said employers and companies should not take advantage of the current economic situation to avoid paying the Socso contribution for their workers. — Bernama pic
Minister Datuk Seri M. Saravanan said employers and companies should not take advantage of the current economic situation to avoid paying the Socso contribution for their workers. — Bernama pic

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IPOH, Sept 3 — The Human Resources Ministry today warned of stern action against employers who did not register or contribute to the Social Security Organisation (Socso) for their employees.

Minister Datuk Seri M. Saravanan said employers and companies should not take advantage of the current economic situation to avoid paying the Socso contribution for their workers.

“I want to give warning even though our country is facing economy downturn, don’t take this situation as an advantage to not pay the Socso contribution

“Whether they want to take this as a warning or advice it’s up to the individuals,” he told reporters after visiting the wife of late Thava Sagayam, who died from head injuries suffered during an assault while on duty as a security guard in December.

Saravanan said this after learning that Thava’s employer did not make the required Socso contributions.

“This is a sad case as the current employer did not contribute to Socso. However, the old employer had submitted the contribution.

“Socso has taken special measures to help the deceased’s wife in this case,” he said.

Earlier, Saravanan together with Socso officials, presented E. Philomena, 59, the deceased’s wife, with a beneficiary cheque at her home, which covers RM2,000 for the burial ceremony and one-off payment of RM12,737 as the deceased was bedridden in hospital for about six months.

Socso also announced that the widow will receive a lifelong pension of RM1,143.90 every month.

Saravanan also said Socso enforcers together with the Department of Labour will be conducting checks on all the companies throughout the country in a special operation to solve this issue of not paying Socso contribution for employees.

He added that the issue of not paying the Socso contribution for employees was prevalent among companies that offer security services.

“The workers’ welfare must be safeguarded. For example, in the case of Thava, imagine if he had no (Socso) contribution. How would the wife survive as the husband was the sole breadwinner and they don’t have children?” he said.

“The Socso contribution is not high. If the employers can’t pay an average of RM10 per month for their employees then it’s something wrong.

“The Socso contribution from the year 1971 until today remains unchanged. But the benefits for the workers under the Socso have increased more than 100 per cent of the contribution,” he added.

He also suggested that companies found guilty of not paying the contributions be penalised the maximum under the existing Rules and Act, which is a compulsory RM10,000 fine and two years’ imprisonment.

Saravanan also said the ministry will announce a special Socso contribution for single mothers and housewives under the E-Kasih programme soon.

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