MOT Allocates RM3.5 Million for Self-Employed Social Security Scheme

Seberang jaya: The Transport Ministry (MOT) has allocated RM3.5 million for the Self-Employed Social Security Scheme (LINDUNG Kendiri) initiative this year, benefiting 50,000 taxi, rental car, and school bus drivers nationwide. Transport Minister Anthony Loke announced that the government's contribution rate under the scheme is set at 70 percent, to be implemented by the Ministry of Human Resources through the Social Security Organisation (PERKESO), effective January 1, 2025.

According to BERNAMA News Agency, the ministry will sponsor the remaining 30 percent of the total contribution. Loke clarified that the RM3.5 million allocation comes from the proceeds of Special Registration Numbers (NPI) bids and not from the Ministry of Finance (MoF). "This RM3.5 million allocation is not provided by MoF, as there is no specific budget item for this purpose in MOT's annual allocation. Therefore, we decided to use the proceeds from NPI number plate bids to fund it," he stated.

Loke made this announcement after inaugurating the Seberang Jaya branch PERKESO Dialysis Centre and presenting the LINDUNG Kendiri sponsorship at the Penang PERKESO office. The sponsorship targets 50,000 drivers, comprising 35,000 taxi or rental car drivers and 15,000 school bus drivers who are active nationwide.

The allocation increase from RM1.165 million in 2024 to RM3.5 million this year aims not only to improve protection but also to raise awareness among the self-employed regarding the importance of social protection. In 2024, MOT sponsored the remaining 10 percent or RM23.30 per person, disbursing almost RM524,000 in total. The government, through PERKESO, covered 90 percent (RM209.50) of the full contribution of RM232.80, benefiting around 22,000 drivers.

Meanwhile, Human Resources Minister Steven Sim noted that this year marks the second consecutive year of collaboration between MOT and KESUMA to provide free contributions to 50,000 drivers nationwide. He emphasized the importance of drivers being aware of their participation in the scheme and their entitlement to make claims in the event of accidents or disasters.

According to PERKESO statistics, from January to September 5 this year, 829,771 Self-Employed Persons contributed to LINDUNG Kendiri, with 189,662 from the passenger transport category. During the same period, benefit distributions under LINDUNG Kendiri recorded 5,712 recipients, with total payments exceeding RM21.2 million.