20 December 2022
On 11 October 2022, the Employees’ Social Security (Minimum Average Monthly Wage) Regulations 2022 (“2022 Regulations”) were gazetted in Malaysia. The 2022 Regulations will come into effect on 1 January 2023 and the Employees’ Social Security (Minimum Average Monthly Wage) Regulations 2014 (“2014 Regulations”) will be revoked.
The amendments under the 2022 Regulations are as follows:
- The minimum average monthly wage for an insured person for the purpose of an invalidity pension referred to in section 20(2) of the Employees’ Social Security Act 1969 (“SOCSO Act”), or the survivors’ pension referred to in paragraph 4 of the Eighth Schedule to the SOCSO Act is increased from RM 950 to RM 1,100;
- The minimum average monthly wage shall apply to an insured person if the rate of the invalidity pension or survivors’ pension received on 31 December 2022 by the insured person or his dependants, as the case may be, is less than RM 550 as compared to RM 475 under the 2014 Regulations.