Do you know what is social security? Based on what I understand, social security is the foundation of economic security that provides monetary assistance to people who retirees, disabled person, and families of retired, disabled or deceased workers.
In Malaysia, social security provided by SOCSO, the Social Security Organization. At the same time, the Employment Provident Fund (EPF) supplys benefits which are predominantly for retirement purpose. It also provides withdrawal schemes for specific purpose.
What Is SOCSO?
SOCSO is funded by contributions from both the employer and the employee. The amount paid into the scheme depends on an employee's earning. It is the responsibility of employer to ensure that their employees are registered with SOCSO.
Foreign workers are no covered by SOCSO, but under the 1952 Worker's Compensation, they are eligible for employment injury compensation.
What Is EPF?
EPF is essentially a savings fund with contributions made by the employer and their employees. The amount paid in is proportional to an employee's wage. All employees, with the exception of domestic workers and the self-employed are required by law to make payments to the EPF.
The contribution to the SOCSO and EPF are compulsory, this means employee and employer is obligated to pay a certain amount of the employee's monthly wage into these fund.
This is the way how to calculate our EPF
No comments:
Post a Comment