Perkeso will open an online opt-out option for the LINDUNG 24 Jam scheme from 13 July, following this week’s Cabinet decision to make contributions voluntary for local workers while keeping them mandatory for foreign workers. 

Perkeso group chief executive officer Dato’ Sri Dr. Mohammed Azman Aziz Mohammed said the option follows a directive from the Human Resources Minister.

Perkeso Still Encourages Contributions

Despite the policy change, Mohammed Azman said Perkeso strongly encourages local workers to continue contributing to LINDUNG 24 Jam, which provides income replacement if a contributor is affected by an accident outside working hours. He said the contribution rate is low compared with existing protection premiums in the market and should be seen as a safety net for families rather than a financial burden.

Perkeso has recorded an average of 27 claims a day for LINDUNG 24 Jam benefits, amounting to nearly RM2 million paid out between 1 June and early July, the scheme’s first month in effect. Perkeso CEO Mohammed Azman said the figures show the scheme is working as intended, as many of these claims would previously have been rejected for not being work-related.

Opt-Out Requires A Signed Declaration

Contributors who wish to opt out must complete a liability release declaration, since LINDUNG 24 Jam operates under the Employees’ Social Security Act 1969 (Act 4). Mohammed Azman said the declaration will serve as the legal basis for any future disputes, particularly in cases involving accidents outside working hours, and confirms that opted-out contributors are exempted from the Act’s provisions. 

Perkeso has not specified which platform will host the opt-out option, only that it will be available online from 13 July. We will provide an update once the details are announced. 

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Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

About THE AUTHOR

Iman Aminuddin

Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

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