UNI-MLC Argues Against Abolishing LINDUNG 24 Jam

Kuala lumpur: The UNI Malaysia Labour Centre (UNI-MLC) asserted today that the LINDUNG 24 Jam initiative should not be abolished but instead improved to offer workers more comprehensive social protection.

According to BERNAMA News Agency, UNI-MLC President Datuk Mohamed Shafie BP Mammal emphasized that LINDUNG 24 Jam serves as a crucial reform to bridge the protection gap for workers involved in accidents outside working hours and not directly related to their employment. Prior to its implementation, such accidents were generally not covered under the Employment Injury Scheme, leaving some workers, including those with permanent disabilities, without adequate protection.

Mohamed Shafie highlighted that based on observations through UNI-MLC representatives involved in the Social Security Appellate Board (JRKS), only a small fraction of appeals, estimated at one or two out of every 20 cases, could be approved for being linked to Employment Injury. He pointed out that the rest did not meet the eligibility requirements under existing provisions, yet these individuals remain workers who have suffered accidents, with some sustaining permanent disabilities.

He stressed that this situation could severely impact the lives of workers and their families, resulting in loss of income, inability to continue working, and loss of the family's primary source of income. In response, UNI-MLC believes that workers need more comprehensive protection for non-employment injury accidents, including Medical Benefits, Temporary Disablement Benefits, Permanent Disablement Benefits, and Dependants' Benefits, subject to stipulated conditions.

Regarding contributions, Mohamed Shafie acknowledged that the full rate of 1.25 percent of a salary, with a salary ceiling of RM6,000, has implications for workers' incomes but supported its phased implementation. The first phase is set at 0.75 percent starting in June 2026, followed by one percent in June 2028, and 1.25 percent in June 2031.

He noted that there is an opportunity during this period for the government to reassess the national minimum wage rate from the current RM1,700 to a better structure to help alleviate the pressure from increased statutory contributions. Mohamed Shafie argued that calls to halt the collection of contributions are not a solution, as they risk reopening the protection gap that LINDUNG 24 Jam aims to address.

He suggested that if the contribution rate needs reviewing or a contribution-sharing mechanism between workers and employers is considered, it should be discussed through a proper engagement process. Additionally, he called on the government, the Social Security Organisation (PERKESO), employers, and workers' representatives to return to the negotiating table to evaluate aspects of the contribution rate, financing mechanism, benefit levels, and the scheme's implementation methods.