KUALA LUMPUR: A two-month grace period will be given for employers to register their companies and employees with the Social Security Organisation (Socso) before the start of the 14th Ops Kesan in July.
Those who register from May 2 to June 30 will be exempted from needing to pay any compounds, interest on late payment of contributions or legal action even if they had exceeded the previously set period to register and contribute, said Socso chief executive Datuk Seri Dr Mohammed Azman Aziz Mohammed.
Ops Kesan is an annual intensified inspection carried out by Socso officers on all registered employers and employees nationwide that is aimed at identifying employers who failed to register their businesses or employees under Socso.
The aim of the operation is to ensure that all eligible employers and workers contribute to Socso, which is in turn used to provide social security protection for all workers.
Mohammed Azman said the extended grace period this year was to ensure that all employers and employees would have the opportunity to register in time.
“In previous Ops Kesan operations, we found that there were still a significant number of employers who were either unaware of the grace period given or learned about it too late, leaving them unable to register in time.
“As such, we plan to utilise all available platforms and hold more awareness campaigns within the next two months to spread awareness of this grace period as much as possible,” he said during a press briefing at Menara Perkeso here yesterday.
Mohammed Azman noted that all employers, even those with a single worker, were required to register and contribute based on the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
Those who fail to do so after the grace period ends will face compounds of up to RM10,000, or up to two years’ imprisonment, or both.
Employers will also be charged interest on late payment of contributions at a rate of 6% of total late payment for each year that contributions were not paid.
As of March 31, close to 1.15 million active employers have registered under Sosco – covering over 9.31 million workers.
However, only 573,390 registered employers are active contributors to Socso, and of the 2.3 million foreign workers registered, only 52% or 1.2 million have actively contributed to Sosco.
Registration can be done at any Socso office around the country or through its online portal ASSIST, or by contacting its helpline at 1300 228 000.
