Malaysia Payroll Alert 2026: New SOCSO SKBBK (LINDUNG 24 JAM)

If you run payroll for employees in Malaysia, June 2026 has introduced a new mandatory deduction that every payslip must now reflect. SOCSO — formally known as PERKESO (Pertubuhan Keselamatan Sosial) — has launched the SKBBK (Skim Kemalangan Bukan Bencana Kerja), publicly branded as LINDUNG 24 JAM (24-hour protection). This is a brand-new, separately structured scheme — distinct from the Employment Injury Scheme and Invalidity Scheme most Malaysian employers already administer.

This guide gives HR teams, payroll managers, and operations leaders everything they need to implement the deduction correctly, understand the phased rate structure, communicate the change clearly to employees, and stay on the right side of SOCSO compliance from the very first affected pay cycle.

1. What Is SKBBK (LINDUNG 24 JAM)?

The change

SKBBK stands for Skim Kemalangan Bukan Bencana Kerja — the Non-Occupational Accident Scheme. It is administered by SOCSO under the Employees' Social Security Act 1969 (Akta Keselamatan Sosial Pekerja 1969). LINDUNG 24 JAM is the public-facing brand name, translating directly as "24-hour protection."

What it does

Malaysia's existing SOCSO Employment Injury Scheme covers employees for accidents and occupational diseases that arise out of and in the course of employment — workplace incidents and work-related travel. SKBBK extends mandatory coverage to accidents that occur outside of work: at home, during leisure, during personal travel, or anywhere else in an employee's daily life — around the clock, seven days a week.

Benefits provided under SKBBK mirror the structure of the Employment Injury Scheme applied to the non-occupational context. They include medical treatment costs, temporary disablement benefit, permanent disablement benefit, constant attendance allowance, and dependants' benefit in the event of death from a qualifying non-work accident. For the complete benefit schedule, see the official SOCSO SKBBK page ↗.

2. Who Is Covered — and Who Pays?

Who is covered

SKBBK applies to all employees currently registered under SOCSO's First Category contributions — employees under 60 years of age who contribute to both the Employment Injury Scheme and the Invalidity Scheme. If your employees are already on standard SOCSO First Category, they are automatically covered under SKBBK from 1 June 2026. There is no separate registration process for individual employees.

Who pays — and who does not

This is the single most important operational detail for payroll teams to communicate correctly, both internally and to employees. SKBBK is 100% employee-borne. There is no employer contribution share for this specific scheme. The full deduction is taken from the employee's monthly gross salary. The employer's role is limited to withholding the correct amount and remitting it to SOCSO alongside existing contributions — the cost does not appear on the employer side of the payroll ledger.

3. Contribution Rates and Phased Implementation

The phased rate structure

SKBBK contributions are calculated as a percentage of the employee's assumed monthly salary — consistent with how all existing SOCSO contributions are calculated using the tiered SOCSO contribution schedule. The rate increases in three steps over the first six years of the scheme.

What the deduction looks like in practice

The examples below show the Phase 1 deduction (0.75%) at common salary levels. Note that the actual deduction follows the SOCSO assumed salary bracket schedule — your payroll system should apply the bracket-based amount, not a raw percentage of exact gross salary.

Rate transition timeline

4. Payroll Implementation — What to Do Right Now

June 2026 payroll

The effective date is 1 June 2026, which means the SKBBK deduction must be included in June payroll — not deferred to July. If your June payroll has already been processed without the deduction, contact your payroll provider immediately to discuss the correction approach and confirm the SOCSO remittance obligation for the missed cycle.

Payslip labelling

The deduction should appear as a clearly labelled separate line item on the employee payslip, distinct from existing SOCSO Employment Injury and Invalidity Scheme contributions. Recommended label: SOCSO — SKBBK (LINDUNG 24 JAM). A clear label significantly reduces employee queries and prevents confusion with other SOCSO deductions.

SOCSO remittance

SKBBK contributions are submitted to SOCSO via the ASSIST portal ↗ alongside existing SOCSO monthly contributions. The standard SOCSO remittance deadline applies: by the 15th of the following month. June 2026 contributions are therefore due by 15 July 2026.

• —Update your payroll software now. Configure the SKBBK deduction at 0.75% using the SOCSO assumed salary bracket schedule. Do not apply a flat percentage to exact gross salary — the bracket-based calculation is required for SOCSO compliance.
• —Label the payslip line item clearly. SOCSO — SKBBK (LINDUNG 24 JAM) as a standalone deduction line. Do not merge it with existing SOCSO contributions.
• —Submit via ASSIST by 15 July 2026. Include SKBBK contributions in the June SOCSO monthly submission. Late remittances attract a 6% per annum surcharge under the Employees' Social Security Act.
• —Communicate to employees before the payslip is issued. See Section 6 for a ready-to-use employee communication template.
• —Retain contribution records. SOCSO audits cover all schemes. Keep SKBBK remittance records alongside your existing SOCSO documentation as part of your standard payroll audit trail.

Managing Malaysia payroll through Slasify?

Slasify handles SOCSO, EPF, EIS, HRDF, and now SKBBK for all Malaysia payroll clients — so your June 2026 deductions are correct from day one. Talk to your account manager or reach our Malaysia compliance team directly.

Talk to our Malaysia team

5. How SKBBK Fits Into Malaysia's Full Statutory Contribution Picture

For employers managing Malaysian payroll, it helps to see SKBBK in context alongside every other statutory contribution your payroll must handle. The table below gives the complete 2026 picture, with SKBBK highlighted as the new addition.

For employers already running compliant Malaysian payroll, SKBBK adds one new employee-side deduction line and one additional contribution amount in the monthly SOCSO ASSIST portal submission. No new registration is required and no new portal access is needed — it is an extension of the existing SOCSO workflow.

6. What to Tell Your Employees — Suggested Communication

Because SKBBK directly reduces employee take-home pay, proactive communication before the June payslip is issued is not optional — it is a basic trust-management requirement. Employees who receive an unexplained new deduction on their paycheck without prior notice will escalate to HR, payroll, or line managers. A single clear message sent in advance — before the payslip is distributed — prevents the majority of those queries.

The key framing principle: lead with the benefit, not the deduction. Employees are gaining 24-hour accident protection — the deduction is the mechanism that funds it. Messaging that leads with the benefit produces significantly better reception than messaging that leads with the amount being deducted.

🌐 Frequently Asked Questions

1. Is SKBBK mandatory for all employees in Malaysia, or only certain categories?

SKBBK applies to all employees currently registered under SOCSO's First Category contributions — employees under 60 years of age who contribute to both the Employment Injury Scheme and the Invalidity Scheme. If your employees are already enrolled in standard First Category SOCSO, they are automatically covered under SKBBK from 1 June 2026. No separate employee registration is needed. The deduction is applied through the existing payroll and SOCSO ASSIST portal workflow.

2. Does the employer need to contribute anything to SKBBK?

No. SKBBK is 100% employee-borne. The employer's role is to deduct the correct amount from the employee's monthly gross salary and remit it to SOCSO via the ASSIST portal by the 15th of the following month. The cost of the scheme does not appear on the employer side of the payroll ledger. This is structurally different from the Employment Injury Scheme, where the employer bears the full contribution. Getting this distinction right on the payslip and in your payroll system is essential for compliance accuracy.

3. How is SKBBK different from the existing SOCSO Employment Injury Scheme?

The existing Employment Injury Scheme covers employees for accidents and occupational diseases that arise out of and in the course of employment — incidents that occur at the workplace or are directly tied to work duties. SKBBK covers accidents that occur outside of work: at home, during personal travel, during leisure, or any non-occupational context. Together, the two schemes provide comprehensive 24-hour accident coverage. The key operational differences for payroll: the Employment Injury Scheme is employer-paid with no employee contribution, while SKBBK is employee-paid with no employer contribution.

4. What happens if we missed the SKBBK deduction in our June 2026 payroll?

If the SKBBK deduction was not included in the June 2026 payroll cycle, contact your payroll provider or HR team immediately. The standard correction approach is to apply the missed deduction in the next payroll cycle and include the outstanding contribution in the next SOCSO ASSIST submission. Late SOCSO contributions attract a surcharge of 6% per annum on unpaid amounts under the Employees' Social Security Act. We recommend confirming the exact correction method with SOCSO directly or through your in-country payroll advisor, as SOCSO's guidance on catch-up remittances should be followed precisely.

5. Does SKBBK apply to foreign employees working in Malaysia?

Foreign employees already enrolled in SOCSO First Category contributions in Malaysia will be subject to SKBBK from June 2026. The determining factor is whether the employee is currently contributing under First Category SOCSO — not their nationality. SOCSO coverage for foreign workers has expanded in recent years, and many foreign nationals on Malaysian employment contracts are now enrolled. Confirm each foreign employee's current SOCSO registration status via the ASSIST portal or with your payroll provider before processing the June deduction.

6. When does the rate increase from 0.75% to 1.00%, and do we need to do anything now?

The Phase 1 rate of 0.75% applies for the first two years of the scheme — from June 2026 through May 2028. The Phase 2 rate of 1.00% takes effect from June 2028, and the Phase 3 rate of 1.25% from June 2031. No action is required now for Phase 2 or Phase 3. Continue applying the 0.75% Phase 1 rate until SOCSO issues updated contribution schedules ahead of each transition. Slasify clients managing Malaysia payroll through our platform will be notified proactively before each phase change takes effect.