Great news for Filipino domestic workers based in Malaysia! The government announced that it will expand its social security protection coverage, benefitting approximately 100,000 workers in this sector.
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Officials noted that both local and foreign domestic helpers will enjoy the added benefits provided by the expanded version of the social security plan, as mandated by law.
Malaysia’s Domestic Workers Soon to be Covered Under Social Security Plan
In line with this, Human Resources Minister Datuk Seri M. Saravanan announced the Cabinet’s approval of the proposed expansion plan of the social security coverage to domestic helpers under the Employees Social Security Act 1969 (Act 4) and Employment Insurance System Act 2017 (Act 800), The Star reported.
“The government hopes to enforce this expansion through these regulations that is expected to be implemented on June 1,” Saravanan mentioned.
The expansion of the act will benefit domestic helpers who are Malaysians or Permanent Residents contributing to SOCSO. They will be protected under the Employment Injury Scheme and the Disability Scheme under Act 4, as well as the Employment Insurance System under Act 800.
In the same manner, foreign domestic workers will be covered under Act 4 of the Employment Injury Scheme.
Act 4 of the Employees’ Social Security Act 1969 administers Employment Injury Scheme and Invalidity Scheme, which offers protection for employees who suffer injuries due to accidents or occupational diseases arising in the course of employment, and provides 24-hour protection to employees against invalidity or death due to any cause.
The labor minister emphasized that workers covered by the expanded social security plan include those who work in informal sectors such as drivers, gardeners, and babysitters.
With this, he said that the contributions paid by the employer and employee will follow the current rate under Act 4 and Act 800.
“A total of 104,400 domestic helpers comprising 15,000 Malaysians and Permanent Residents, as well as 89,400 foreigners are expected to benefit from this,” he explained.
The expansion of coverage will protect the domestic helpers who previously did not qualify for coverage under Act 4 and Act 800, according to Saravanan.
Malaysia is among the top destinations among OFWs in 2019-2020, accounting for 25% of the OFWs deployed in the Southeast and Southeast Asian region.