PUTRAJAYA, Oct 6 — The Social Security Organisation (Socso) will implement adjustments in cost of living for existing recipients of scheduled benefits and an increase in the minimum pension rate under its Invalidity Scheme effective Jan 1, 2023.
Human Resources Minister Datuk Seri M. Saravanan said this initiative was implemented following the International Labour Organisation’s (ILO) 11th Actuarial Assessment Study, by taking into consideration the current social and economic conditions in Malaysia after the COVID-19 pandemic, higher cost of living and increase in inflation rate.
“The adjustment in Socso regular benefit payments is expected to benefit more than 400,000 existing recipients and involve an estimated expenditure totalling RM213 million,” he said in a statement today.
He said Socso benefits under the Employees Social Security Act 1969 (Act 4) which are paid on a periodic basis cover Invalidity Pension and Survivors’ Pension under the Invalidity Scheme and Permanent Disablement and Dependants’ Benefits under the Employment Injury Scheme.
Saravanan said that so far, adjustments to cost of living for Socso regular benefit payments had been made 10 times under the Invalidity Scheme since 1982 and 12 times under the Employment Injury Scheme since 1977.
He said the adjustment rate in cost of living for the recipients of Socso scheduled benefit payments was between 0.7 per cent and 9.4 per cent depending on the year the pension was received.
Saravanan also said the minimum pension rate under the Invalidity Scheme of Act 4 would be increased from RM475 to RM550 a month.
“The increase in this minimum pension rate is expected to benefit about 56,000 households in the country to help address the increase in cost of living, involving an allocation of RM21 million,” he said.
Saravanan said it was hoped that this initiative would help ease the financial burden of Keluarga Malaysia in the post-COVID-19 pandemic period.