Introducing SOCSO

Many employees are exposed to various risks that cause hardship in their lives. Accidents that result in disablement or death, occupational diseases and others not only results in problems to the employee but also affects the lives of the dependents. Employees have to be protected by social insurance to reduce the sufferings and to provide financial help and guarantee to the family as a whole.

Purpose of SOCSO
The purpose of SOCSO is to provide security and protection, as well as a just, accurate, timely and quality service economically to all employees, their dependents and their employers. SOCSO aims to:

		pay temporary disablement benefits (first payment) to injured employees within a month
		pay disablement benefits (first payment) and constant attendance allowance to all injured employees within 3 months
		pay dependents benefits (first payment) to dependents within 3 months
		pay invalidity pension (first payment)/ invalidity grant/ constant attendance allowance to employees who qualify within a period of 3 months
		pay survivor's pension (first payment) to dependents within a period of 3 months
		pay funeral benefits to eligible dependents of deceased person within 15 days

Registering with SOCSO
Employers are required to fill Form 1 (Employer Registration Form) and Form 2 (Employee Registration Form) for registration with SOCSO. SOCSO will then issue a employers code number to be used in all correspondence with the company.

Employer
Principal employer- This refers to an employer who has employed the employee directly to work for him. The employer undertakes the payment of wages and all the service matters of the employee.

Immediate employer- This refers to an employer who works for a principal employer or undertakes part of the work of the principal employer by sub-contract. The immediate employer has direct control of the employees employed by him.

The principal and immediate employer who employs one or more employees is required to register and contribute monthly for all employees. The principle employer is also liable to ensure that all employees employed by the immediate employer have to be registered and their contributions paid. In the event that the employees have not been registered and the immediate employer cannot be located, the principal employer is liable under the Social Security Act 1969 for all contributions.

Employee
A person employed under a contract of service or apprenticeship is an employee under the Act. It is compulsory for an employee earning a monthly wage of less than RM2000 to make contributions to SOCSO. What happens with an employee earning a monthly wage of more than RM2000?

There are 2 situations regarding this matter. They are:

		Employees who previously registered with and have contributed to SOCSO must compulsorily continue to contribute even if their present wage exceeds RM2000 monthly. The employees must be protected in line with the principle of "once covered, always covered" to preserve their rights accumulated under the Invalidity Pension Scheme.
		Employees who receive a monthly wage exceeding RM2000 and who have not previously registered or paid contributions to SOCSO are given an option to be covered under the Act. Both the employer and employee have to consent to the coverage by filling in the necessary forms.

Are all employees eligible for SOCSO coverage?
All employees eligible for coverage under the Act must register and contribute to SOCSO irrespective of employment status, whether permanent, temporary or casual in nature. However, certain categories of employment are exempted from coverage, namely:

		Government service
		Domestic servants
		Self- employed persons
		Foreign workers (exempted since April 1st, 1993)

Is the age of the employee a factor?
All employees must be registered irrespective of their age. However, employees who exceed age 55 will continue to be protected under the employment injury scheme if they continue to be employed after that age. Only the employer shall contribute to SOCSO for such employees.

Is this scheme compulsory?
This is a compulsory scheme. Employers must cover their employees even if they have other private insurance coverage for them. Employees are eligible for all benefits from SOCSO and compensation under any private insurance policy in the event of an accident.

Contribution
The principal employer must make a monthly contribution for each eligible employee according to the rates specified under the Act. The employee's share of 0.5% of wages should be paid for coverage under the Invalidity Pension Scheme while the employer pays 1.75% for the Employment Injury Insurance Scheme and the Invalidity Pension Scheme.

Types and categories of contribution:

		The first category: Employment Injury Insurance Scheme and Invalidity Pension Scheme. The payment of the contribution is by both the employer and employee.
		The second category: Employment Injury Insurance Scheme Only. The payment of contributions is made only by the employer, i.e. for an employee who is not eligible for coverage under the Invalidity Pension Scheme.

Defining 'wages'
All remuneration payable in money to an employee is wages for purposes of SOCSO contributions. This includes the following payments:

		Salary
		Overtime payments
		Commissions and service charge
		Payments for leave, annual leave, maternity, rest day, public holidays and other
		Allowances, incentives, shifts, food, cost of living, housing and others

All payments made to an employee paid at an hourly rate, daily rate, weekly rate, piece or task rate is considered as wages, except the below:

		Payments by an employer to any statutory fund for employees
		Mileage claims
		Gratuity payments or payments for dismissal or retrenchments
		Annual bonus

Coverage
SOCSO provides protection to eligible employees through two schemes namely the Employment Injury Insurance Scheme and the Invalidity Pension Scheme.

Employment Injury Insurance Scheme
The scheme provides an employee with protection for accidents that occur while:

		Traveling (commuting accident)
		Arising out of and in the course of employment
		Occupational diseases

What are the benefits provided under the scheme? The benefits provided are:

		Medical benefit
		Temporary disablement benefit
		Permenant disablement benefit
		Constant dependent benefit
		Dependent's benefit
		Funeral benefit
		Rehabilitation benefit
		Education benefit

Has your employer registered you with SOCSO?
Each employee registered with SOCSO will be given a Social Security Registered Number. If your employer has not registered you, please contact the SOCSO Office nearest to you. For more information, please contact:

Pertubuhan Keselamatan Sosial (PERKESO)
Menara PERKESO,
Lot 281, Jalan Ampang,
50538 Kuala Lumpur.

General Line: 03-4253 5320
Call Center: 03-4257 5755

E-mail: perkeso@perkeso.gov.my
Website: www.perkeso.gov.my

Prudent Spending

Nowadays without prudent planning, it would be really tough for us to survive in this society especially with the inflation or rising cost living.

What does RM100 get you if you are a young executive in Kuala Lumpur? I think you could not do much about it except for your normal routine transportation and meals. Some might finish it within 1 day or 2 but some are able to survive with it for a week, why is that? The reason is because it depends on how do you spend it and the way you choose to live with.

You can make your money stretch further if you learn how to manage it carefully, such as:

Know what you want to do with your money
Be transparent with your own financial status. Ensure you know how much is left at the end of the month after allocating money for your monthly expenses such as rental, car installment, petrol, meals and other necessities.

Know where your money goes
Be aware and alert where your money goes and make sure you do not spend on unnecessary things. Things like clothes, shoes or accessories are endless favourite buying products. There are always new trends, fashion and style, so if you do not know how to limit yourself, then all your money will be gone in the wind.

Know your spending habits
If you found that you have not much money left to spend at the end of the day, then you might want to look into your daily expenses, grocery bills and households item. Check whether there are any items that are not necessary to purchase.

You should also look out for some of the warning signals of bad spending habits that will lead to real money problems:

	You use your savings to pay current bills
	You delay payment of some bills which you used to pay on time
	You take out new loans to pay for old ones
	You defer your loan repayments
	You prefer to pay by installments when buying everyday household items
	You owe more than you earn at the end of the month
	You buy on impulse even though you know you can't afford it

Develop a prudent spending plan
Establish your monthly total income, total up all the fixed monthly bills, repayments, daily living expenses and etc. Place aside a fixed sum of money that is enough to handle emergency or seasonal expenses. (Income tax, Insurance renewals, etc)

Spend wisely and within your means
Ask yourself this question whenever you want to spend on something, 'Is that a need or just a want?' Do not spend on unnecessary thing.

Reserve some money for your future
If you found there is no surplus left after deducting all the expenses, you might need to review your list again. Try to cut down the expenses by Do-It-Yourself. For example, making your own breakfast or cook more often, exercise at home or park instead of paying to join the gym center and etc. You may want to cut down utility bill by monitoring the use of your water and electricity and also restrict calling at peak hours.

It is always a matter on how you plan and spend your money and not how much you earn. Besides that, we always have to learn how to tight on thrift.

Remember Cash Is Best - Always pay cash in any transaction (other than buying a car or house). Do not fall for hire purchase schemes, however attractive they may be. The tactic or philosophy is - if you cannot afford it, you do not need it! Paying by credit cards in advance merely postpones the payment - until month-end.

Beating traffic jams

Time is money to the professional businessperson. Thus, the worst thing that could happen to them is by idling their time away by getting stuck in a traffic jam. Although a handphone may be of some consolation to getting some things done, nothing is compared to the "professional" time wasted in traffic jams.

An average motorist probably earns between RM2,500 to RM 4,000 a month, thus earning approximately RM10.50 to RM16.50 an hour. If a motorist gets stuck in a traffic jam for an average of 2 hours each day, they are effectively losing between RM21 and RM33 everyday. Based on an estimate of 50,000 motorists on the road each day, we have a monumental loss that could run between RM105 million and RM165 million per day! That's a huge sum even though it's only based on estimation but that's the common scenario we have on our busy Kuala Lumpur roads. This bad traffic does not even include the inflow of the morning traffic into the city or the outflow of evening traffic to the suburbs.

There is constantly bad traffic on our roads. And that's not half as bad as when the rainy season starts.

With high traffic in our city at all times, it doesn't take much to start a jam. An accident, a car breaking down, burst pipes, power failures affecting the traffic lights, haphazard parking or anything unusual happening along the road- 4D numbers anyone?

What's more, the high number of road constructions constantly going on at the same time doesn't help to ease traffic flow either.

The traffic situation is further worsened by the high number of single occupancy vehicles. Motorists can help themselves if they practice car-pooling, but car-pooling is only successful if it is done amongst colleagues from the same company. And car-pooling won't work among those who need to mobile in their line of work- and this number of people is huge. Car-pooling is usually inconvenient and other countries have applied it with little success. Why should Malaysia be any different?

Traffic jams are stressful for the motorist, more so if he or she is late for an appointment or function and getting nowhere anytime soon. It is also unhealthy- with vehicle exhaust including harmful substances such as hydrocarbons, carbon dioxide, etc, that causes polluted air, haze and acid rain.

To make matters worse, fewer parking spaces will be allocated on public roads with higher parking fees. New buildings constructed are not required to include ample parking space. This will directly cause congestion on the roads worse.

Although there are measures being taken currently to lessen the present worsening situation, implementation is slow and takes time.

In the future, a zoning system will be introduced (similar to that of Singapore) whereby motorists are not allowed to enter the city during certain hours unless they have a special permit. Motorists will then be forced to take public transport into the city while leaving their car at the LRT (Light Rail Transit) or Komuter stations.

Currently the LRT operates from Ampang to Jalan Sultan Ismail- Jalan Raja Laut junction. It is quick and convenient for those who live near the route with feeder buses working to pick up passengers who don't live on the same route. The LRTs cheap ticket price would also appeal to passengers as they would rather spend less on a ticket rather than wasting petrol being stuck in a traffic jam.

The Komuter is also a good alternative, but unlike the LRT system, its schedule is a lot less frequent. There are however, improvements being made as KTM has begun providing services at 15-minute intervals during the morning and evening rush hours.

As for buses, Intrakota now offers better service compared to the old "bas mini's" of yesteryear, as it is air-conditioned and cleaner. Punctuality however, is something to be desired although that could be the sole result of bad traffic- a chicken and egg situation here.

Traffic jams costs big money: great productivity loss, increased stress levels and ongoing health and environmental complications for everyone. Looking at the situation, it looks like everyone will have to chip in to help solve the problem. Take public transport, car-pool when possible & above all, don't slow down to look at accidents!

The faster we resolve to cooperate amongst ourselves, the lesser time we have to spend stuck in traffic jams!

Motorcycle Safety

Riding a motorcycle safely requires both physical and mental skills. You need physical skills to operate the bike smoothly and to perform evasive maneuvers like swerving and stopping. You need mental skills to safely interact with other traffic and to avoid hazards. But which is more important? How much of riding is physical, and how much is mental?

While the amounts vary depending on the bike, the rider, and the situation, experts believe that riding a motorcycle on the street is 90% mental and 10% physical. Beginning riders probably focus as much on the physical side as the mental side, maybe 50/50, while experienced riders probably focus almost entirely on the mental side: maybe 95/5!

Important articles of clothing:

Helmet-
to protect the head and brain, provide comfort and protect against hearing loss. Designed to spread the force of impact throughout the helmet so that less impact energy reaches the head and brain.

Bodysuit-
use a jacket made of leather or other man-made abrasion resistant material. The jacket should fit snugly and contain extra padding to give protection. Longer sleeves with full shoulders provide full comfort while in a sitting position with your hands on the handle bars.

Pants-
should also be made of leather or other abrasion resistant material and be made to cover the ankles while sitting. Some are made to wear over your regular clothes.

Footwear-
over-the-ankle-boots made specifically for motorcycle riding protect the feet and legs from stones that fly up from the road, burns from exhaust pipes as well as provide good grip on the footrests while riding and on the pavement while stopped. Good boots also provide valuable foot and ankle protection in a crash.

Gloves-
full-fingered gloves protect from the wind, sun, heat and cold. Using reinforced stitching, gloves also protect hands and wrists in case of a crash.

Tips for motorcyclists:

	Visibility
		make yourself as conspicuous as possible
		wear protective clothing that is brightly coloured
		use reflective tape or stickers on your motorbike or helmet

	Intersections
		consider combining hand and light turning signals when you want to make a turn
		flash your brake lights a few times before actually stopping

	Following distance
		never assume that you can be seen; always drive where you are most visible to other motorists
		always maintain a 2 second space between you and the next vehicle; at night or in poor conditions such as rain, increase this to 4-5 seconds

	Passing
		slow down or maintain your speed when being passed by another vehicle

	Road hazards
		be constantly alert for road hazards; Look far ahead (4 to 12 seconds) to allow extra time and space to react. Your best defense against any sort of hazard is to be nowhere near it. This includes changing position, changing lanes, or even changing your route

	Weather hazards
		reduce your speed when driving in undesirable conditions such as rain and fog. Signal your intentions early, brake and accelerate gradually because you could be almost invisible to others

	Lane use
		it is never advisable to ride side-by-side as this may limit your escape route in case of emergency. When traveling with other motorcyclists, it is best to ride in a staggered formation, using both sides of the lane. When riding in a large group, leave gaps in the formation to allow other vehicles to pass or exit the freeway

Tips for motorists:

	Watch aggressively for motorcycles.
		Search the traffic around you constantly and expect to see motorcycles
		Check your blind spots before changing lanes or merging, especially in heavy traffic
		Double-check traffic at intersections before you turn or pull out
		Motorcycles can easily be hidden in traffic. Look for a helmet above, tires below, or a shadow alongside a vehicle that you can't see around

	Anticipate hazards that may confront the motorcyclist and predict how the motorcyclist may react to the situation.
		Poor road conditions, bad weather, flying debris, oil slicks, and heavy traffic pose high risks for motorcyclists

	Allow a minimum two-second "space cushion" when following a motorcycle.
		Pick out a fixed object ahead of you. When the motorcycle passes the object, count off, "one thousand one, one thousand two." If you haven't passed the same object after two seconds, your following distance meets the two-second minimum
		In poor driving conditions, at higher speeds and at night, use a four or five-second following distance to give the motorcyclist more space

	Watch out when turning left.
		Most crashes between cars and motorcycles involve turning left at an intersection. If you are preparing to cross traffic or turn left, take a second look for motorcycles
		Because motorcycles are smaller than cars, it is harder to see them and more difficult to judge their approach speed in traffic

	Share the road.
		Do not drive your car in the same lane as a motorcycle as this is unsafe and illegal
		Treat motorcyclists with the same respect and courtesy you afford to other motorists

	Observe and obey all traffic laws, signs, and signals.
		Failure to obey and yield the right-of-way can result in the death or serious injury of a motorcyclist
		Stay focused on the driving task. Inattentive driving is a major cause of car-motorcycle crashes
		Use turn signals to indicate your next move. This allows the motorcyclist anticipate traffic flow and find a safe lane position
		Remove all possible distractions that can interfere with the driver's attention, and remove any objects that may block the driver's view