Malaysia has introduced an important change to the PERKESO Lindung 24 Jam scheme, giving local employees greater flexibility over their social security coverage.
Effective from 8 July 2026, participation in Malaysia's PERKESO Lindung 24 Jam (Non-Employment Injury Scheme) is no longer mandatory for local employees. Instead, eligible employees can choose whether to participate, with the full cost of the contribution now borne by the employee. Employers will continue to facilitate payroll deductions and remit contributions where employees opt into the scheme.
There are no changes to the requirements for foreign workers, for whom participation in the scheme remains mandatory.
What Has Changed?
The Malaysian Government has revised the operation of the PERKESO Lindung 24 Jam scheme as part of the Social Security Organisation (SOCSO) framework.
The key changes are:
The change provides employees with greater choice while allowing those who wish to extend their social security protection outside the workplace to continue participating.
Understanding the Lindung 24 Jam Scheme
Lindung 24 Jam, also referred to as the Non-Employment Injury Scheme, provides protection for accidents or injuries that occur outside the course of employment.
Unlike the Employment Injury Scheme, which covers work related accidents and occupational diseases, Lindung 24 Jam extends coverage to qualifying incidents that occur during an employee's personal time.
The scheme forms part of Malaysia's wider social security framework administered by PERKESO and is designed to provide additional protection beyond workplace related incidents.
What Does This Mean for Employers?
Although participation is now voluntary for local employees, employers continue to play an important administrative role.
Organisations should review:
Employers should also ensure that payroll systems correctly apply the different requirements for local and foreign employees.
Opt Out Process for Existing Participants
To support the transition to the voluntary arrangement, PERKESO has introduced an opt out process for local employees who no longer wish to participate in the Lindung 24 Jam scheme.
Employees can submit their preference:
PERKESO has encouraged employees to use the online portal wherever possible, although manual submissions remain available. Employers may wish to remind employees of the available options and ensure payroll records are updated where participation changes.
Employees who choose to opt out will no longer receive coverage under the Lindung 24 Jam scheme for qualifying non-work-related accidents, while participation for foreign workers remains mandatory.
What About Foreign Workers?
The changes announced in July 2026 do not affect foreign workers.
Employers should continue to:
Businesses employing both local and foreign workers should ensure their payroll processes correctly apply the different contribution requirements.
Preparing for the Change
Although the policy simplifies participation for local employees, organisations should take the opportunity to review payroll and HR processes to ensure they remain compliant.
Practical steps include:
Taking these steps can help reduce payroll errors and ensure contributions are administered correctly.
Malaysia – Global Insights
For further guidance on Malaysian payroll, employment legislation, social security and workforce compliance, visit the Malaysia Global Insights section on the activpayroll website.
Supporting Employers in Malaysia
activpayroll supports organisations operating in Malaysia with payroll compliance, legislative updates and workforce management, helping businesses adapt confidently as requirements evolve.
If you would like to understand how the PERKESO Lindung 24 Jam changes may affect your organisation, speak to our experts today.