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With the opt-out window for local employees having closed on 31 August 2026, Malaysia’s LINDUNG 24 Jam scheme has entered its next implementation stage. Employers should now focus on verifying employees’ participation status and accurately reflecting the results in September payroll calculations, statutory contribution filings and employee communications.
For companies expanding into Malaysia, the practical challenge often lies not in understanding an individual requirement, but in keeping information consistent across different teams and systems. The local HR team, headquarters finance team and payroll services provider may also be working from different employee lists. Employers may also be uncertain whether contributions paid previously are refundable.
If these details are not verified before payroll processing, businesses may face incorrect or missed deductions, repeated payroll adjustments and employee complaints.
LINDUNG 24 Jam is the Non-Employment Injury Scheme introduced by Malaysia’s Social Security Organisation (PERKESO, also known as SOCSO) starting from 1st June 2026. It provides eligible employees with round-the-clock protection.
Unlike the Employment Injury Scheme, which primarily covers workplace accidents and occupational injuries, LINDUNG 24 Jam covers accidents that:
Examples may include accidents at home, during personal travel or while undertaking private activities.
Subject to the applicable requirements, insured employees may be eligible for medical benefits, temporary or permanent disablement benefits, rehabilitation support and benefits related to death.
According to PERKESO’s FAQ, participation in LINDUNG 24 Jam is voluntary for local employees but operates on an automatic enrolment basis.
Existing local employees who did not voluntarily opt out by 31 August 2026 will continue to participate automatically. Foreign workers within the scope of the scheme are subject to mandatory participation and should not have their deductions stopped under the opt-out arrangements for local employees.
Before updating the September payroll, HR should divide employees into three groups:
HR should not simply reuse the August payroll list or suspend deductions based only on an employee’s verbal request.
During Phase 1, from 1 June 2026 to 31 May 2028:
These requirements apply to participating local employees and all foreign workers covered by the scheme. There is no age limit for coverage under the LINDUNG 24 jam scheme, as long as the individual holds an active employee status with an employer.
A verbal notification, chat message or email sent to HR does not constitute confirmation of a valid opt-out in PERKESO’s system.
Before processing payroll, employers should check each employee’s participation status through the contribution module in the ASSIST Portal. According to PERKESO’s official guidance, employees who have not opted out will be marked with a “#”. PERKESO will also notify the relevant employer of an employee’s opt-out decision and issue notifications to employees who submitted paper forms.
HR should cross-check the ASSIST Portal results, opt-out confirmation notices and internal employee master data. The date of verification, person responsible and supporting documents should also be recorded.
If an employee claims to have opted out but the system still shows active participation, the employer should not immediately stop the deduction. HR should first confirm when and how the employee submitted the request and, where necessary, verify the status with PERKESO. Any payroll adjustment should be based on the system record or formal notification.
Refund eligibility depends on when the contribution was paid.
Contributions for June 2026 were mandatory at the time. Therefore:
Contributions paid from July 2026 onwards may be refundable if the employee completed a valid opt-out within the permitted period. Eligibility will depend on the employee’s confirmed opt-out record and the relevant contribution period.
Employees cannot apply directly to PERKESO for these refunds. The employer must submit the application through the Refund menu under the Inspection module in the ASSIST Portal. Alternatively refund application can be submitted manually by request over the PERKESO counter.
Before refunding or offsetting any amount through payroll, employers should confirm the employee’s eligibility and the status of the refund application. This helps avoid promising a refund before approval has been confirmed.
The 31 August deadline was the central opt-out period for existing local employees. It does not mean that all local employees joining from September onwards are unable to opt out.
For a newly registered local employee:
Employers should include this process in their onboarding procedures. HR should also set a clear deadline for employees to make their selection and submit the required documents before the payroll cut-off date.
If these steps are not completed on time, the first month’s contribution may be deducted and a correction may subsequently be required. This creates additional administrative work and employee communication. Foreign workers should continue to be processed under the mandatory participation requirements.
1. Verify the employee list. Use the ASSIST Portal records as the primary reference and pay particular attention to new hires, leavers, employees with multiple employers, foreign workers and employees who claim to have opted out.
2. Verify payroll deductions and statutory filings. Confirm the participation indicator, contribution basis, 0.75% rate and RM6,000 wage ceiling in the payroll system. Check that the statutory submission file matches the final payroll results.
3. Verify employee communications. Explain the basis for continuing or stopping deductions, or submitting a refund application. Employees should also be informed of the expected process and relevant contact person. All communications should be retained for record-keeping purposes.
Responsibilities should also be clearly allocated. The local HR team should verify employee identities and participation details. Headquarters finance should confirm the accounting treatment for contributions and refunds. The payroll team or payroll outsourcing services provider should update payroll settings, process deductions, complete statutory filings and retain the relevant records.
All three parties should work from the same verified final employee list, supported by clear change-approval and version-control procedures.
Are you reviewing payroll calculations or LINDUNG 24 Jam contributions for employees in Malaysia? Links International provides payroll services, Employer of Record (EOR), social security administration and HR outsourcing services across Asia-Pacific. Contact us to simplify your payroll and statutory contribution processes in Malaysia.
Details are based on the official PERKESO LINDUNG 24 Jam guidance.
LINDUNG 24 Jam is a PERKESO (SOCSO) social protection scheme that provides eligible employees with 24-hour protection for accidents that occur outside working hours and are not directly related to employment.
Participation is voluntary for eligible local employees but operates on an automatic enrolment basis. Local employees who did not opt out by 31 August 2026 will continue contributing, while foreign workers covered by the scheme are subject to mandatory participation.
From 1 June 2026 to 31 May 2028, the contribution rate is 0.75% of monthly wages, subject to a wage ceiling of RM6,000. The contribution is fully borne by the employee and deducted and remitted by the employer.
June 2026 contributions cannot be refunded. Contributions paid from July 2026 onwards may be refundable if the employee completed a valid opt-out within the permitted period and meets PERKESO’s requirements.
Employers should verify employees’ participation status in the PERKESO ASSIST Portal, update payroll deductions, confirm statutory filings and keep records of opt-out confirmations and employee communications.
For companies expanding into Malaysia, the practical challenge often lies not in understanding an individual requirement, but in keeping information consistent across different teams and systems. The local HR team, headquarters finance team and payroll services provider may also be working from different employee lists. Employers may also be uncertain whether contributions paid previously are refundable.
If these details are not verified before payroll processing, businesses may face incorrect or missed deductions, repeated payroll adjustments and employee complaints.
What Is the LINDUNG 24 Jam Scheme?
LINDUNG 24 Jam is the Non-Employment Injury Scheme introduced by Malaysia’s Social Security Organisation (PERKESO, also known as SOCSO) starting from 1st June 2026. It provides eligible employees with round-the-clock protection.
Unlike the Employment Injury Scheme, which primarily covers workplace accidents and occupational injuries, LINDUNG 24 Jam covers accidents that:
- Occur outside working hours
- Are not directly related to the employee’s work
- Take place within Malaysia
Examples may include accidents at home, during personal travel or while undertaking private activities.
Subject to the applicable requirements, insured employees may be eligible for medical benefits, temporary or permanent disablement benefits, rehabilitation support and benefits related to death.
Who Should Continue Contributing?
According to PERKESO’s FAQ, participation in LINDUNG 24 Jam is voluntary for local employees but operates on an automatic enrolment basis.
Existing local employees who did not voluntarily opt out by 31 August 2026 will continue to participate automatically. Foreign workers within the scope of the scheme are subject to mandatory participation and should not have their deductions stopped under the opt-out arrangements for local employees.
Before updating the September payroll, HR should divide employees into three groups:
- Local employees who completed a voluntary opt-out: Payroll deductions should stop once their status has been verified.
- Local employees who did not opt out: Contributions should continue to be deducted.
- Foreign workers covered by the scheme: Contributions remain mandatory.
HR should not simply reuse the August payroll list or suspend deductions based only on an employee’s verbal request.
What Is the Contribution Rate?
During Phase 1, from 1 June 2026 to 31 May 2028:
- The contribution rate is 0.75% of monthly wages
- The contribution wage ceiling is RM6,000
- The contribution is fully borne by the employee
- The employer must deduct and remit the contribution to PERKESO each month
These requirements apply to participating local employees and all foreign workers covered by the scheme. There is no age limit for coverage under the LINDUNG 24 jam scheme, as long as the individual holds an active employee status with an employer.
How Should HR Verify an Employee’s Opt-Out Status?
A verbal notification, chat message or email sent to HR does not constitute confirmation of a valid opt-out in PERKESO’s system.
Before processing payroll, employers should check each employee’s participation status through the contribution module in the ASSIST Portal. According to PERKESO’s official guidance, employees who have not opted out will be marked with a “#”. PERKESO will also notify the relevant employer of an employee’s opt-out decision and issue notifications to employees who submitted paper forms.
HR should cross-check the ASSIST Portal results, opt-out confirmation notices and internal employee master data. The date of verification, person responsible and supporting documents should also be recorded.
If an employee claims to have opted out but the system still shows active participation, the employer should not immediately stop the deduction. HR should first confirm when and how the employee submitted the request and, where necessary, verify the status with PERKESO. Any payroll adjustment should be based on the system record or formal notification.
Which Contributions May Be Refunded?
Refund eligibility depends on when the contribution was paid.
June 2026 contributions
Contributions for June 2026 were mandatory at the time. Therefore:
- Contributions already paid cannot be refunded
- Any underpaid amount must still be deducted and paid to PERKESO
Contributions from July 2026 onwards
Contributions paid from July 2026 onwards may be refundable if the employee completed a valid opt-out within the permitted period. Eligibility will depend on the employee’s confirmed opt-out record and the relevant contribution period.
Employees cannot apply directly to PERKESO for these refunds. The employer must submit the application through the Refund menu under the Inspection module in the ASSIST Portal. Alternatively refund application can be submitted manually by request over the PERKESO counter.
Before refunding or offsetting any amount through payroll, employers should confirm the employee’s eligibility and the status of the refund application. This helps avoid promising a refund before approval has been confirmed.
How Should New Employees Joining from September Be Handled?
The 31 August deadline was the central opt-out period for existing local employees. It does not mean that all local employees joining from September onwards are unable to opt out.
For a newly registered local employee:
- The employer must register the employee through the relevant PERKESO system
- The employee should be informed about the scheme
- If the employee does not wish to participate, a Notice of Release of Liability must be submitted.
- The notice must be submitted before the first monthly contribution is deducted (within 30 days after joining the company)
Employers should include this process in their onboarding procedures. HR should also set a clear deadline for employees to make their selection and submit the required documents before the payroll cut-off date.
If these steps are not completed on time, the first month’s contribution may be deducted and a correction may subsequently be required. This creates additional administrative work and employee communication. Foreign workers should continue to be processed under the mandatory participation requirements.
Complete Three Checks Before September Payroll
1. Verify the employee list. Use the ASSIST Portal records as the primary reference and pay particular attention to new hires, leavers, employees with multiple employers, foreign workers and employees who claim to have opted out.
2. Verify payroll deductions and statutory filings. Confirm the participation indicator, contribution basis, 0.75% rate and RM6,000 wage ceiling in the payroll system. Check that the statutory submission file matches the final payroll results.
3. Verify employee communications. Explain the basis for continuing or stopping deductions, or submitting a refund application. Employees should also be informed of the expected process and relevant contact person. All communications should be retained for record-keeping purposes.
Responsibilities should also be clearly allocated. The local HR team should verify employee identities and participation details. Headquarters finance should confirm the accounting treatment for contributions and refunds. The payroll team or payroll outsourcing services provider should update payroll settings, process deductions, complete statutory filings and retain the relevant records.
All three parties should work from the same verified final employee list, supported by clear change-approval and version-control procedures.
Are you reviewing payroll calculations or LINDUNG 24 Jam contributions for employees in Malaysia? Links International provides payroll services, Employer of Record (EOR), social security administration and HR outsourcing services across Asia-Pacific. Contact us to simplify your payroll and statutory contribution processes in Malaysia.
Details are based on the official PERKESO LINDUNG 24 Jam guidance.
Frequently Asked Questions About Malaysia’s LINDUNG 24 Jam Scheme
- What is Malaysia’s LINDUNG 24 Jam scheme?
LINDUNG 24 Jam is a PERKESO (SOCSO) social protection scheme that provides eligible employees with 24-hour protection for accidents that occur outside working hours and are not directly related to employment.
- Is LINDUNG 24 Jam mandatory for employees in Malaysia?
Participation is voluntary for eligible local employees but operates on an automatic enrolment basis. Local employees who did not opt out by 31 August 2026 will continue contributing, while foreign workers covered by the scheme are subject to mandatory participation.
- What is the LINDUNG 24 Jam contribution rate?
From 1 June 2026 to 31 May 2028, the contribution rate is 0.75% of monthly wages, subject to a wage ceiling of RM6,000. The contribution is fully borne by the employee and deducted and remitted by the employer.
- Can LINDUNG 24 Jam contributions be refunded?
June 2026 contributions cannot be refunded. Contributions paid from July 2026 onwards may be refundable if the employee completed a valid opt-out within the permitted period and meets PERKESO’s requirements.
- What should employers check after the LINDUNG 24 Jam opt-out period?
Employers should verify employees’ participation status in the PERKESO ASSIST Portal, update payroll deductions, confirm statutory filings and keep records of opt-out confirmations and employee communications.