📢 SOCSO Lindung 24/7 is Now Voluntary: What Malaysian Employers and Employees Need to Do

 
 
 
 
 
HR Compliance SOCSO Lindung 24/7 Now Voluntary

SOCSO Lindung 24/7
is Now Voluntary:
What Malaysian Employers and Employees Need to Do

Effective 8 July 2026: PERKESO has changed SOCSO Lindung 24/7
from a compulsory scheme to a voluntary participation scheme
for Malaysian employees.

This update requires action from both employees and HR departments to ensure payroll records and SOCSO contributions remain accurate.

July 2026
4 Min Read
01
 

Who Does This Apply To?

SOCSO Logo
Malaysian Employees
All Malaysian employees must choose whether to continue participating or opt out of the SOCSO Lindung 24/7 (Non-Employment Injury Scheme) through the SOCSO portal.
Foreign Employees
No action is required for foreign workers. Their SOCSO coverage under the compulsory scheme remains unchanged.

📌 Note:The voluntary participation option applies only to Malaysian employees.

02
 

✅ Action Required for Employees

📤 If You Wish to Opt Out

Employees who do not wish to participate in the scheme must complete the following steps:

1

Log In to the SOCSO Portal

Access the SOCSO portal and select your preferred participation option.

Login to SOCSO Portal →
2

Download the Declaration Form

After submitting your participation choice, download the Declaration Form from the SOCSO portal. Refer to page 6 of the official user guide.

3

Submit the Form to HR

Submit a copy of your Declaration Form to your HR Department.

If You Wish to Continue
Employees who wish to remain covered under the SOCSO LINDUNG 24/7 Scheme do not need to take any action through the SOCSO Portal.

Important: Automatic Enrolment After the Deadline
Employees who do not submit an opt-out application by 31 August 2026 will be automatically enrolled in the SOCSO LINDUNG 24/7 Scheme, and contributions will continue.

03
 

💼 What HR Needs to Do

📩 SOCSO will notify employers when an employee successfully submits an opt-out application.

After receiving the employee's Declaration Form, HR should update the employee's payroll profile. For employees who opt out of the SOCSO Lindung 24/7 scheme:

1
Open the employee's profile in SQL Payroll.
2
Navigate to the employee's SOCSO settings.
Untick the "Non-Employment Injury Scheme"option for employees who have opted out.
Save the changes before processing the July payroll.

This ensures the employee's SOCSO contribution is calculated according to their selected participation status.

To maintain proper employment records, HR is encouraged to request employees who choose to continue participating to sign a declaration form confirming their decision for management records.

 
04
 
Solution Spotlight

💻 Managing the Update
in SQL Payroll

SQL Payroll makes it simple for HR teams to manage the latest SOCSO Lindung 24/7 changes. Once an employee's declaration has been received:

Review the employee's participation choice.
Update the employee's profile in SQL Payroll.
Untick the Non-Employment Injury Scheme option for employees who have opted out.
Process payroll confidently with the correct SOCSO contribution.

Keeping employee records up to date helps reduce payroll errors and supports compliance with the latest PERKESO requirements.

 

SQL Payroll

Explore
05
 

Video

Navigating the Update:
Expert Software Guidance

Watch this quick video to understand the SOCSO Lindung 24/7 voluntary participation update and its exact impact on your payroll.

Learn practical tips on leveraging SQL Payroll to easily manage opt-in and opt-out records for each employee.

Key policy updates
Payroll impacts
Actionable software guidance
06
 

📋 Quick Summary

👤 Employee Type 📌 Required Action
Malaysian Employees Submit the opt-out application on or before 31 August 2026 via SOCSO Portal.
Foreign Workers No action required. The compulsory SOCSO scheme remains unchanged.
HR Department Update the employee's SQL Payroll profile based on the submitted Declaration Form before processing the July payroll.
07
 

❓ Frequently Asked Questions (FAQ)

1Is there an age limit for coverage under the SOCSO LINDUNG 24/7 Scheme?
No. There is no age limit as long as the individual remains employed by an employer.
2Can an employee who has chosen to participate opt out in the future?
No. Once an employee chooses to participate in the SOCSO LINDUNG 24/7 Scheme, the participation is considered "once eligible, always eligible." The employee must continue contributing under the scheme to ensure continuous protection.
3What should Malaysian employees do if they do not wish to participate?
Employees who wish to opt out must submit their declaration through one of the following methods:
  • SOCSO Lindung Faedah Portal
  • 1Best System (at any SOCSO/PERKESO office)
  • Liability Release Notice (Notis Pelepasan Liabiliti Skim LINDUNG 24 Jam) if the online system is unavailable
Employees who wish to continue participating are not required to submit any declaration.

4Can June 2026 contributions be refunded?
No. Contributions for June 2026 were mandatory under the law before the Cabinet's decision on 8 July 2026. Therefore, contributions paid for June 2026 cannot be refunded, as required under the Employees' Social Security (Amendment) Act 2026, which came into effect on 1 June 2026.
5What if an employee has more than one employer?
Employees with multiple employers must select one employer only to make contributions under the SOCSO LINDUNG 24/7 Scheme through the SOCSO Lindung Faedah Portal if they have not already made a selection before or on 8 July 2026. If no employer is selected, SOCSO will automatically assign one employer based on its prescribed criteria.
08
 

⭐ Stay Compliant with SQL Payroll

Employment regulations continue to evolve, and payroll systems need to keep pace. With SQL Payroll, HR teams can efficiently manage statutory changes, employee records, and payroll calculations — helping reduce manual work while improving payroll accuracy and compliance.

By updating employee profiles based on the latest PERKESO requirements, businesses can process payroll confidently while maintaining proper employee records.

💡 Using SQL Payroll? Simply update the employee's Non-Employment Injury Scheme setting based on the submitted Declaration Form before running your July payroll.

"Every employee now makes their own choice.
Shouldn't your payroll system keep track of it for you?"

SQL Payroll

Jul 14,2026