WORKMEN

1
WORKMENS COMPENSATION ACT

• CHAPTER
• EIGHT
• 8

2
4.4 SOCIAL SECURITY FOR MIGRANT WORKERS AND
DEPENDENTS

• Initially, foreign workers are protected under
  Employees Social Security Act, but then it was
  resolved in 1st April 1993 due several reasons.
• There are also fund provided for foreign workers
  under EPF Act, but it was also resolved in 1st
  August 1998.
• Now, their benefits are under workmens
  Compensation (Foreign Workers Compensation
  Scheme) (Insurance) Order 1998.

3
SOCIAL SECURITY FOR MIGRANT WORKERS

• All migrant workers
• Not more than RM500 monthly income
• Manual labour (Unlimited monthly income)
• Employers responsibility
• All employers must pay a Insurance premium, for
  RM86 yearly for ach workers from selected
  insurance company ie
• Arab Malaysian Assurance Bhd / Mayban Assurance
  Bhd
• MNI Bhd / Sykt Takaful

4
SOCIAL SECURITY FOR MIGRANT WORKERS

• No deduction of employees salary for premium
  insurance payment purposes
• Compensation is paid directly to the migrant
  workers

5
SOCIAL SECURITY FOR MIGRANT WORKERS AND DEPENDENTS

• Additional benefits.
• The insurer, in addition to its contractual
  obligations to pay in accordance with the policy
  of insurance subscribed by the employer in favour
  of his workman, shall provide under the Scheme
  the following additional benefits without
  imposing any additional premium on the employer

6
SOCIAL SECURITY FOR WORKERS AND DEPENDENTS MIGRANT

• (a) a sum of RM25,000 in the event of death of
  a workman from personal injury sustained in an
  accident which arises out of and in the course
  of his employment
• (b) where the personal injury is sustained in
  an accident which occurs outside the working
  hours of a workman
• (i) a sum of RM23,000 in the event of death or
  permanent total disablement

7
SOCIAL SECURITY FOR WORKERS AND DEPENDENTS MIGRANT

• (ii) a sum of money equivalent to the amount
  of compensation awarded under section 8 of the
  Act for, and in the event of, permanent partial
  disablement or temporary disablement and
• (c) a sum of RM4,800 or the actual expenses
  incurred in repatriating a workman to his
  country of origin in the event of his death or
  permanent total disablement, whichever is lower.

8
SOCIAL SECURITY FOR MIGRANT WORKERS
Benefits Working Hours Off Working Hours
Death RM 25,000.00 RM 23,000.00
Permanent Disablement As per Workmen Compensation Act (Max. RM 23,000.00) RM 23,000.00
Temporary Loss of Income Due to Temporary Disablement As per Workmen Compensation Act 1952 As per Workmen Compensation Act 1952
Hospitalization Medical Expenses As per Workmen Compensation Act 1952 (Max. RM 520.00) As per Workmen Compensation Act 1952 (Max. RM 520.00)
Repatriation Due to Death and Permanent Disablement RM 4,800.00 RM 4,800.00
9
PENALTY
OFFENCES PENALTY
Deduct employees salary to purchase premium insurance RM 5,000 / 1 year imprisonment / both
Fail to purchase employees premium insurance RM 20,000 / 2 year imprisonment / both
Fail to report the accident First RM5,000 Second RM10,000