What SOCSO SKBBK (Lindung 24 Jam) Actually Covers, and What You Give Up If You Opt Out

Now that SKBBK (Lindung 24 Jam) is voluntary for Malaysian employees, a lot of people are asking the wrong question first.

The question doing the rounds is "how do I stop the deduction?" The more useful one is "what am I actually paying for?" Every local employee now has a real decision to make, and most will make it without ever having been told what the scheme covers.

This guide sets out the facts on both sides of that decision, taken from PERKESO's own scheme documentation: what SKBBK pays for, what it costs, what it does not cover, and what changes if you opt out. It is not a recommendation either way. That choice belongs to the employee.

The gap SKBBK was built to close

Before June 2026, PERKESO protection was essentially about work. Accidents that did not arise out of and in the course of employment were simply not covered under the Employment Injury Scheme. If something happened to you at home, on a weekend, or on holiday, you were on your own.

That is the gap SKBBK closes. It provides 24-hour protection for accidents that are not related to your employment, occurring within Malaysia.

PERKESO estimates that around 250,000 employees a year who have accidents, and who are currently not covered under Act 4, will benefit from the scheme. Its stated rationale is that this protection matters most for lower-income workers, who are least able to afford private insurance, since commercial premiums are relatively high compared with the scheme's contribution rate.

What SKBBK actually covers

Cover applies to accidents occurring within Malaysia and outside working hours, including journeys unrelated to work. PERKESO's own examples are more useful than any paraphrase:

• Accidents while travelling back to your hometown or returning home during festive seasons, whether alone or with family or friends

• Accidents while taking family on holiday or leisure trips anywhere in Malaysia

• Falls from a sleeping place at home

• Accidents while preparing for or performing religious worship, including the journey there

• Injury from an animal attack, or during the Qurban sacrificial ritual

• Accidents on a return journey to the workplace or home to retrieve forgotten belongings

• Accidents during recreation or private sport, such as cycling or football

• Accidents while carrying out repairs at your own home, provided it is not income-generating work

• Any other personal accident not related to employment under Act 4

  
  

The eight benefits

The benefits are identical to those under the Employment Injury Scheme. If a claim is accepted, an employee may be eligible for:

• Temporary Disablement Benefit. Paid for the duration of medical leave certified by the attending doctor, for a period of not less than four days including the day of the accident. It is still paid even if the employee attends work and receives wages.

• Permanent Disablement Benefit. Assessed by the Medical Board, with payment based on the assessment rate, average wage and age.

• Medical Benefit. Free treatment at PERKESO panel clinics or government clinics and hospitals until fully recovered. Severe injuries are treated at a government hospital in a second-class ward, with specialist treatment if needed.

• Constant-Attendance Allowance. Fixed at RM500 a month, for an employee assessed with permanent total disablement who needs another person's constant attendance.

• Physical and vocational rehabilitation. Physiotherapy, occupational therapy, prosthetics and appliances such as wheelchairs, crutches and hearing aids, plus vocational retraining and Return to Work support, borne by PERKESO at fixed rates.

• Dependants' Benefit. Paid if the employee dies from a non-employment injury, at rates identical to the LINDUNG Pekerja scheme.

• Funeral Benefit. RM3,000, paid to the widow, widower, child, mother or father, or otherwise against actual funeral expenses up to that maximum.

• Education Benefit. Provided in the form of a loan to a dependant's child, where the insured person dies or is receiving periodical Permanent Disablement payments. Subject to PERKESO's terms.

  
  

Claims are made through the LINDUNG Benefit Portal at lindungfaedah.perkeso.gov.my or at a PERKESO office, with the prescribed supporting documents.

Two points most people miss

You can claim even if you already have private insurance. Benefits are available regardless of whether the employee holds a private policy, a medical card, or cover provided by their employer. "I already have insurance" is not, by itself, a reason the scheme would pay nothing.

But you cannot claim twice for the same accident. An employee is only eligible for one benefit for the same accident, so you cannot draw on both the Employment Injury Scheme and SKBBK for a single incident.

What it does not cover

• Accidents while working. Still covered separately under the Employment Injury Scheme, so nothing changes there whether you opt out of SKBBK or not.

• Accidents outside Malaysia. There is no coverage while the employee is abroad.

• Fraudulent or staged accidents, accidents involving criminal acts, and self-inflicted injuries or suicide attempts.

• Self-employed individuals, who are not covered and contribute instead under the Self-Employment Social Security Scheme (Act 789).

• Accidents before 1 June 2026, the scheme's effective date.

• Any illness or injury not caused by an accident, including occupational diseases.

• Certain unpaid-leave situations where no contribution was made for the month of the accident, with limited exceptions.

  
  

So opting out of SKBBK does not strip your work-injury protection. It removes cover for accidents in your own time.

What it costs, and where the rate is heading

SKBBK is borne entirely by the employee. Employers do not contribute, because they already pay 1.25% under the Employment Injury Scheme, which covers work-related and commuting accidents.

The contribution is taken from monthly wages, subject to the RM6,000 wage ceiling, so the most anyone pays in the current phase is RM44.65 a month. For an employee on RM4,500, it is RM33.35 a month. There is no age limit: cover continues for as long as you remain an employee.

The rate everyone is arguing about is only the opening one. It is scheduled to rise in three phases:

• Phase 1: 0.75% from 1 June 2026 to 31 May 2028 (the current phase)

• Phase 2: 1.00% from 1 June 2028 to 31 May 2031

• Phase 3: 1.25% from 1 June 2031

  
  

So an employee deciding today is not really deciding about 0.75%. They are deciding about a contribution that, on current plans, rises by two-thirds by 2031. That belongs in the conversation, whichever way they lean.

PERKESO's case for staying in

PERKESO has been openly encouraging workers not to opt out, and their argument is worth understanding rather than just the headline about the deduction.

Their case, as put by Group Chief Executive Officer Dato' Sri Dr Mohammed Azman Aziz Mohammed, is essentially about value: that Malaysia's contribution rate is among the lowest of the 164 countries under the International Social Security Association, and that the protection received when something goes wrong is disproportionate to the small amount paid in. PERKESO has also pointed to early claims activity, roughly 27 claims a day and close to RM2 million paid out in the scheme's first month, as evidence the cover is being used.

That is PERKESO's position, and we report it as theirs. There is also public discussion about the deduction and about the opt-out mechanism itself. Employees will weigh both.

Our own view is narrower, and it is not about whether anyone should stay in: the decision should be an informed one. Right now a lot of people are choosing based on a line on a payslip, without knowing what that line buys, or that it is scheduled to rise.

What employers should do

You are not the decision-maker here, but you are the messenger, and that carries some responsibility.

• Keep deducting until an employee opts out. SKBBK is opt-out, not opt-in. The 0.75% continues by default. Do not stop it for local staff on assumption.

• Tell your staff what it is. Most employees have never had the scheme explained. A short, neutral internal note covering what it pays for, what it costs, and how to opt out is the most useful thing an HR team can send this week.

• Stay neutral. Do not push employees to stay in or to leave. Give them the facts and let them decide. It is their money and their risk.

• Foreign workers have no opt-out. SKBBK remains mandatory for them.

• Label it clearly on the payslip. A distinct "SOCSO - SKBBK (Lindung 24 Jam)" line cuts down on queries enormously.

  
  

One further note for employers: PERKESO has provided a six-month grace period from the scheme's enforcement, during which employers are exempt from penalties or legal action specifically relating to SKBBK non-compliance. Other obligations under existing law still apply, and failure to deduct can otherwise carry a fine of up to RM10,000, up to two years' imprisonment, or both.

The bottom line

SKBBK costs an employee up to RM44.65 a month today, rising in phases to 2031, and buys 24-hour accident cover in Malaysia: income replacement while you cannot work, free medical treatment, RM500 a month if you need constant care, a RM3,000 funeral benefit, and support for your dependants if the worst happens. It does not cover accidents at work (already covered) or accidents abroad.

Whether that is worth it depends on the individual: what other cover they hold, what their household would do without their income for three months, and how they weigh a small certain cost against a large uncertain one.

That is a personal call. Our job is to make sure it is an informed one.

Want to see what SKBBK costs on a specific salary? Use our free EPF, SOCSO, EIS & SKBBK calculator to check any employee in seconds, with SKBBK on or off.

For the rules on the opt-out itself, see our companion guide: SKBBK (Lindung 24 Jam) is now opt-out: what Malaysian employers need to know.

If you decide to opt out, here is how

Doing nothing keeps you in. PERKESO has confirmed that if it receives no opt-out notice by 31 August 2026, your participation in Lindung 24 Jam is automatically activated. There is no deadline to stay in, only a deadline to leave.

The opt-out window runs from 13 July to 31 August 2026. To leave the scheme, an employee submits a Release of Liability Notice (Notis Pelepasan Liabiliti):

• Sign up and log in to the LINDUNG Faedah portal at lindungfaedah.perkeso.gov.my

• Complete the selection form (Borang Pilihan), giving your full name, identity card number, and selecting the employer or employers it applies to

• Confirm the declaration that you choose not to participate, understand you will not be entitled to the scheme's benefits, and will not hold your employer or PERKESO liable for consequences arising from that decision

• Download the user guide (Panduan Pengguna) and the notice form from PERKESO's Lindung 24 Jam scheme page if you want to read them first

  
  

The form itself lists the benefits you are giving up, and asks you to confirm the decision is made voluntarily, without pressure or coercion from any party. That last clause matters: this is the employee's decision to make, not the employer's to make for them.

For the employer-side rules on deductions and payroll handling, see our companion guide: SKBBK (Lindung 24 Jam) is now opt-out: what Malaysian employers need to know.

Frequently asked questions

What does SKBBK (Lindung 24 Jam) actually cover?

Accidents that occur within Malaysia, outside working hours, and are unrelated to employment. PERKESO's examples include festive-season journeys home, holiday and leisure trips, falls from a sleeping place at home, accidents during religious worship or the Qurban ritual, recreational sport such as cycling or football, and repairs at your own home.

What benefits does SKBBK pay?

Eight benefits, identical to the Employment Injury Scheme: Temporary Disablement Benefit, Permanent Disablement Benefit, Medical Benefit, Constant-Attendance Allowance (RM500 a month), physical and vocational rehabilitation including Return to Work, Dependants' Benefit, Funeral Benefit (RM3,000), and an Education Benefit provided as a loan to a dependant's child.

How much does SKBBK cost?

It is borne entirely by the employee, subject to the RM6,000 wage ceiling, so a maximum of RM44.65 a month in the current phase. The rate is 0.75% until 31 May 2028, then 1.00% until 31 May 2031, then 1.25% from 1 June 2031.

Can I claim SKBBK if I already have private insurance?

Yes. Benefits are available regardless of whether you hold a private policy, a medical card, or cover provided by your employer. However, you can only receive one benefit for the same accident, so you cannot claim under both the Employment Injury Scheme and SKBBK for a single incident.

What is not covered by SKBBK?

Accidents while working (covered by the Employment Injury Scheme instead), accidents outside Malaysia, fraudulent or staged accidents, accidents involving criminal acts, self-inflicted injuries, illnesses and occupational diseases not caused by an accident, and self-employed individuals, who contribute under a separate scheme (Act 789).

If I opt out of SKBBK, do I lose all my SOCSO protection?

No. Opting out only removes cover for non-work accidents. Employment Injury and Invalidity protection, which the employer contributes to, is unaffected.

Does SKBBK cover employees over 60?

Yes. There is no age limit, as long as the person remains an employee.

How do I claim under Lindung 24 Jam?

Through the LINDUNG Benefit Portal at lindungfaedah.perkeso.gov.my, or at your nearest PERKESO office, with the prescribed supporting documents.

Sources

• PERKESO, Lindung 24 Jam FAQ (English), 25 June 2026 - benefits, exclusions, contribution phases, grace period and claims process. Note this FAQ predates the 8 July 2026 decision, so its statement that contributions are mandatory for all employees has since been superseded for local workers.

  
  

• PERKESO media release, 10 July 2026, "Opsyen 'Opt-Out' Lindung 24 Jam Disediakan Isnin Depan" - the opt-out mechanism, claims activity, and PERKESO's case for continued participation.

  
  

• PERKESO scheme page: https://www.perkeso.gov.my/en/skim-kemalangan-bukan-bencana-kerja-lindung-24-jam.html

  
  

This guide is for general reference. Coverage, benefits and eligibility are determined by PERKESO under the Employees' Social Security Act 1969 (Act 4), as amended by Act A1788. Claims remain subject to PERKESO's assessment.