19th August 2026 - 3 min read
The contribution rate for the Social Security Organisation’s (PERKESO) Non-Employment Injury Scheme, better known as LINDUNG 24 Jam, will increase in stages from 0.75% to 1.25% by the sixth year. At the same time, the scheme’s income replacement benefit will rise to 80% from the current 48%.
PERKESO Deputy Chief Executive Officer (Strategy and Corporate) Edmund Cheong Peck Huang said the current 0.75% rate was the lowest the scheme could start with after the government decided to introduce LINDUNG 24 Jam in stages.
LINDUNG 24 Jam provides protection for accidents that happen outside of work, while PERKESO’s Employment Injury Scheme covers injuries sustained during employment.
Cheong said the 1.25% rate was set around PERKESO’s usual benefits structure, which normally replaces between 80% and 90% of a person’s income. The decision to increase the contribution rate gradually came after discussions at ministry and Cabinet level.
The contribution runs in three phases. It is 0.75% of your wages from 1 June 2026, 1.00% from 1 June 2028, and 1.25% from 1 June 2031. The contribution is paid entirely by you rather than shared with your employer, and it applies to wages up to a ceiling of RM6,000, which means the maximum deduction is around RM45 a month now, rising to around RM75 once the rate reaches 1.25%.
Contributions to LINDUNG 24 Jam are shown separately on salary slips, alongside contributions for other PERKESO schemes. These include the Employment Injury Scheme, the Invalidity Scheme, and the Employment Insurance System.
Malaysian employees can choose to opt out of LINDUNG 24 Jam, while contributions remain mandatory for foreign workers. However, PERKESO has advised workers to consider the protection they already have before doing so.
A medical card or personal accident (PA) policy may provide some protection, but the benefits and payout structure can be different from LINDUNG 24 Jam. A PA policy pays a fixed sum, and the full amount is usually paid only for death or total permanent disability. Smaller injuries pay a percentage of that sum according to the policy’s own scale.
LINDUNG 24 Jam pays differently depending on the injury. The temporary disablement benefit is paid while you are on doctor-certified medical leave of at least four days, and it stops when your medical leave ends. The permanent disablement benefit is assessed by a Medical Board, which determines how much you receive based on how serious the disability is.
If you are considering opting out, check how much your existing policies pay, when they pay it and how long the benefits last before deciding whether the coverage is enough for your needs.
The opt-out declaration is submitted through PERKESO’s LINDUNG Faedah portal or at any PERKESO counter, and the deadline is 31 August 2026. If PERKESO does not receive your declaration by then, you stay in the scheme and the deduction continues. There is no form to fill in if you want to remain covered.
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As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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