KUALA LUMPUR – The Cabinet has decided to make the Social Security Organisation’s (Perkeso) Employment Injury Scheme for Non-Workplace Accidents (SKBBK), better known as Lindung 24 Jam, voluntary instead of mandatory, effective immediately.
The decision means employees are no longer required to contribute 0.75% of their monthly salaries to the scheme, following concerns raised over its implementation.
Communications Minister and Government Spokesperson Datuk Fahmi Fadzil said the matter was deliberated at today’s Cabinet meeting after Prime Minister Datuk Seri Anwar Ibrahim highlighted public feedback on the policy.
“The Prime Minister (Datuk Seri Anwar Ibrahim) raised the feedback received regarding the implementation of the 0.75% contribution from employees’ salaries for the Lindung 24 Jam scheme under the Social Security Organisation (Perkeso).
“Accordingly, the Cabinet has today decided that the contribution will no longer be mandatory but will instead be implemented on a voluntary basis, effective immediately.
“A further statement on this decision will be issued by the Ministry of Human Resources (Kesuma),” he said in a statement.
The Lindung 24 Jam scheme came into force on June 1 under its first phase, extending employment injury protection beyond the workplace to cover accidents occurring outside working hours, including during public holidays and rest days.
Under the original implementation, employees were required to bear the full 0.75% contribution, subject to a monthly salary ceiling of RM6,000.
Separately, Fahmi said the Cabinet also discussed Norway’s decision to revoke the export licence for missiles intended for installation on the Royal Malaysian Navy’s Littoral Combat Ships (LCS).
“The Cabinet has decided that the Ministry of Defence will immediately halt any new procurement of defence equipment or assets from Norway,” he said.
On another policy matter, Fahmi said the government had no plans to raise the retirement age for civil servants.
He said the mandatory retirement age would remain at 60.
The Cabinet also approved a 10-year extension of the tax exemption status for Tunku Abdul Rahman University of Management and Technology (TAR UMT).
“However, TAR UMT remains subject to compliance reviews throughout the approval period, including the requirement to submit audited financial statements annually in accordance with Subsection 44(6) of the Income Tax Act 1967,” he said. – July 8, 2026