Senate Passes Two Human Resources Ministry Bills


 


The Dewan Negara sitting today approved two Bills under the Human Resources Ministry related to the employment insurance system and social security of workers that aim to improve the rights and welfare of workers in this country.
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 of the bill, Sim said it was one of his ministry’s efforts to strengthen insurance coverage, social protection, the family institution, and to drive reforms in the labour market.
He said the amendment involves increasing the maximum insurable limit 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 (above) said for employees whose salaries are above RM5,000 and RM6,000, the monthly contribution rate between employer and employee is between RM0.20 and RM2 respectively, depending on the salary.
The minister said the figure is not too burdensome because the increase will add more than 20 percent to benefits 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 percent 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.
He said this needed to be done due to the increase in the cost of living, which demands benefits for workers, especially those with a salary of RM5,000 and above, 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


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