Malaysia is introducing a significant enhancement to its social security framework through LINDUNG 24 Jam, a 24-hour accident protection scheme under the Social Security Organisation (SOCSO). Effective June 2026, the reform extends protection beyond traditional workplace boundaries, providing continuous coverage for eligible employees regardless of when or where an accident occurs. While employer contribution rates remain unchanged, the measure introduces a mandatory employee-only statutory deduction and requires employers to ensure payroll systems are fully compliant ahead of implementation.
LINDUNG 24 Jam represents a structural extension of Malaysia’s social security coverage, broadening SOCSO (Social Security Organisation) protection from employment-related incidents to a continuous 24-hour model.
Under the expanded framework, employees will be covered for accidents occurring:
This development reflects a policy shift towards broader employee welfare protection, recognising that accidents are not confined to working hours or the workplace environment.
The scheme is introduced under the Employees’ Social Security (Amendment) Act 2025, which was approved by Parliament in December 2025. SOCSO has confirmed enforcement will take effect from June 2026.
From June 2026, a new statutory employee-only contribution will be introduced to fund LINDUNG 24 Jam coverage. This represents the primary payroll change for employers.
Key requirements include:
Although employers are not bearing additional direct contribution costs, they remain responsible for accurate payroll calculation, deduction, and timely remittance to SOCSO. This makes payroll configuration and validation a critical compliance requirement ahead of implementation.
The employee contribution will increase in defined phases as part of a legislated long-term framework:
These rates are statutory and mandatory, with no employer or employee discretion. Payroll systems must therefore be capable of supporting scheduled rate changes over multiple payroll cycles and compliance periods.
While the reform does not increase employer SOCSO contribution rates, it introduces a new payroll deduction that must be accurately implemented within existing payroll operations.
Employers should ensure:
For multinational employers, consistency across regional payroll operations will be essential to ensure uniform compliance and avoid discrepancies in statutory application.
Despite the introduction of expanded accident protection, the wider statutory payroll framework remains stable.
The following remain unchanged:
This continuity provides stability for employers but reinforces the importance of accurate payroll execution for the new employee-only deduction.
Although LINDUNG 24 Jam does not introduce additional employer contribution costs, it does introduce a mandatory payroll deduction that must be correctly administered from the point of implementation.
Organisations should treat this as a payroll systems change rather than a purely policy update, ensuring:
Early preparation will be essential to minimise compliance risk and ensure operational continuity during implementation.
The introduction of LINDUNG 24 Jam marks a significant expansion of Malaysia’s social security framework, extending SOCSO protection to a continuous 24-hour accident coverage model. While employer contribution obligations remain unchanged, the reform introduces a mandatory employee-only deduction from June 2026, with scheduled increases through to 2031.
For employers, the primary focus is operational readiness. Accurate payroll configuration, compliance alignment, and clear employee communication will be critical to ensuring a smooth transition and ongoing statutory compliance.
For further detailed guidance on tax, compliance and mobility requirements in Malaysia, visit our Malaysia Global Insights on the activpayroll website.
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