Perkeso: What Your Payslip Deduction Really Covers
PETALING JAYA: Many Malaysian workers recognise the Social Security Organisation (Perkeso) contribution on their payslips, often viewing it as just another deduction. But what exactly does Perkeso do, and how does it benefit workers?
Perkeso, formerly known as the Employees' Provident Fund (EPF), is a government agency responsible for administering social security for Malaysian workers. Its core function is to provide financial assistance and rehabilitation services to workers who experience employment-related injuries, illnesses, or disabilities. This includes providing income replacement during periods of absence from work due to such incidents.
The contributions made by both employers and employees fund Perkeso's operations. Employers are the primary contributors, with a percentage of their payroll allocated to Perkeso. Employees also contribute a smaller portion of their salaries. The current contribution rate for employees is 1.75% of their monthly salary, up to a maximum contribution of RM437.50 per month. Employers contribute 3.75%.
Beyond financial assistance, Perkeso offers a range of services including vocational rehabilitation, job placement assistance, and medical rehabilitation. These services aim to help injured or disabled workers return to employment and regain their independence. The organisation also plays a role in promoting workplace safety and preventing accidents through various initiatives and awareness campaigns.
Understanding the purpose of Perkeso contributions can provide workers with a greater appreciation for the social safety net in place to protect them during challenging circumstances. More information on Perkeso's services and contribution rates can be found on their official website.