The Employment Insurance System (Amendment) Bill 2024 and the Workers' Social Security (Amendment) Bill 2024 were each passed by majority vote, after the third reading by Human Resources Minister Steven Sim Chee Keong.
When wrapping up the debate on the Employment Insurance System (Amendment) Bill 2024, Sim said the bill was one of his ministry's efforts towards strengthening the coverage with social protection, family institutions and driving the reform of the national labour market.
He said the amendment involves increasing the maximum insurable limit of the ceiling amount of an employee's salary from RM5,000 to RM6,000 per month
"This salary ceiling increase will improve the social security protection benefits of the Social Security Organisation (Socso) under Act 800 which will guarantee the social well-being of benefit recipients with existing benefits," he said.
Sim said for an employee's salary above RM5,000 and RM6,000, each employer and employee's share for a month the new contribution rate is between RM0.20 and RM2, depending on the salary and it is believed that the figure is not too burdensome because the increase will add more than 20 per cent benefit enjoyed by 1.5 million workers in the future.
"This employment insurance system is to ensure that if they are unfortunate enough to lose their jobs due to closures and so on, then they have a 'safety net' and this amendment will ensure that these workers not only enjoy the social safety net but also get more than 20 per cent interest," he said.
As for the Employees' Social Security (Amendment) Bill 2024, Sim said it aims to amend Section 5 as well as the Third and Fourth Schedules of the Employees' Social Security Act 1969 (Act 4) which needs to be done taking into account current issues including the increase in the cost of living, which demands benefits for workers, especially those with a salary of RM5,000 and above, should also be increased.
"The benefits received by them (employees earning more than RM5,000) are currently limited to a calculation of only RM5,000. So to provide this increase (benefit) then we have to increase the contribution.
"There are views from the Members of this House about the burden that may be felt, whether employers or employees in terms of increasing contributions but we (the government) want to do it prudently and I think that even if there is an increase in contributions but the numbers are reasonable and able to be financed ," he said.
-- BERNAMA
