PERKESO (SOCSO) Guide for Foreign Workers

PERKESO (also known as SOCSO) registration is a legal requirement for all employers in Malaysia who hire foreign workers. Skip it and you are not just uninsured — you are non-compliant, and that surfaces at the worst possible moment: a workplace injury, or an audit.

What Is PERKESO (SOCSO)?

PERKESO (Pertubuhan Keselamatan Sosial) — known in English as SOCSO (Social Security Organisation) — is Malaysia's social security body. It provides protection to employees against workplace injuries, occupational diseases, and work-related accidents.

PERKESO is governed by the Employees' Social Security Act 1969 (Act 4) and its regulations. Registration is mandatory — it is not optional or voluntary. Every employer who hires workers, including foreign workers, must register them with PERKESO.

Employer Obligations

As an employer of foreign workers in Sarawak, you are legally required to:

• Register your business with PERKESO as an employer, if you have not already done so
• Register each foreign worker within 30 days of the start of their employment
• Pay monthly contributions on time for every registered foreign worker
• Report any workplace injuries or occupational diseases promptly
• Maintain accurate records of all registered workers and contribution payments

These obligations apply regardless of the worker's nationality, job sector, or type of work pass. Whether you employ general workers, domestic helpers, or skilled professionals, PERKESO registration is required.

Which Scheme Applies to Foreign Workers?

PERKESO operates two main schemes:

• Employment Injury Scheme — Covers workplace injuries, occupational diseases, and commuting accidents
• Invalidity Scheme — Covers invalidity (permanent disability not caused by work) and survivors' benefits

Foreign workers are covered under both schemes. The Employment Injury Scheme has applied to foreign workers since 1 January 2019, and on 1 July 2024 the Invalidity Scheme was extended to foreign workers as well — so coverage now mirrors what Malaysian employees receive under these two schemes.

A third layer arrives on 1 June 2026: the Non-Employment Injury Scheme, known as LINDUNG 24 JAM, which protects foreign workers against injuries that happen outside working hours. Unlike the two schemes above, contributions for this scheme are paid by the worker.

Registration Process

The registration process for foreign workers is straightforward. Here is an overview:

Your employment agency can assist with the registration process as part of the overall foreign worker recruitment process.

Monthly Contributions

PERKESO contributions for foreign workers are calculated on the worker's monthly wages and shared between employer and worker, covering the Employment Injury and Invalidity Schemes. Contact PERKESO or your employment agency for the current contribution schedule.

What Is Covered

Under the Employment Injury Scheme, your foreign workers are covered for:

• Workplace injuries — Accidents that occur during the course of employment, at the workplace or at any location where the worker is performing their duties
• Occupational diseases — Illnesses directly caused by the nature of the work, such as exposure to hazardous materials, repetitive strain injuries, or occupational lung diseases
• Commuting accidents — Injuries sustained while travelling between the worker's accommodation and their place of work

Benefits available under the scheme include:

• Medical treatment — Free treatment at PERKESO panel clinics and hospitals
• Temporary disablement benefit — Periodic payments while the worker is unable to work due to an employment injury
• Permanent disablement benefit — Lump sum or periodic payments for permanent loss of earning capacity
• Dependant's benefit — Payments to dependants in the event of the worker's death due to an employment injury
• Funeral benefit — A payment to cover funeral expenses in the event of death
• Rehabilitation — Physical and vocational rehabilitation for injured workers

Penalties for Non-Registration

Failing to register your foreign workers with PERKESO is a serious offence. The consequences include:

• Fines — Employers who fail to register or pay contributions can be fined under the Employees' Social Security Act 1969
• Full liability for compensation — If an unregistered worker is injured at work, the employer is personally liable for all medical costs and compensation that PERKESO would otherwise have covered
• Prosecution — Repeat or wilful offenders may face court prosecution
• Back payment of contributions — PERKESO can demand retroactive payment of all unpaid contributions with additional penalties

The financial risk of non-registration far outweighs the cost of compliance. A single workplace injury claim for an unregistered worker could cost an employer tens of thousands of ringgit in medical treatment and compensation — costs that would have been covered by PERKESO for a modest monthly contribution.

PERKESO in the Foreign Worker Hiring Process

PERKESO registration is one of several statutory requirements when hiring foreign workers in Sarawak. Here is where it fits in the overall process:

• Before arrival: Prepare your employer registration with PERKESO if not already done
• Upon arrival and pass issuance: Register the worker with PERKESO within 30 days of their employment start date
• Ongoing: Pay monthly contributions and report any workplace incidents promptly
• End of employment: Update PERKESO records when a worker's contract ends or they leave your employment

PERKESO registration works alongside other mandatory requirements including health insurance, security bond, and immigration compliance. A licensed employment agency will guide you through all of these steps as part of the recruitment process.

If a worker absconds or leaves your employment, remember to update their PERKESO status promptly to avoid continued contribution liability.

Frequently Asked Questions