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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2014</h1>
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<h1>Malaysia</h1>
<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00&nbsp;= 3.28&nbsp;ringgits.</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1951 (provident fund).</p>
<p><span class="h4">Current laws:</span> 1969 (social security), 1980 (pension adjustment), 1991 (provident fund), and 2012 (minimum retirement age).</p>
<p><span class="h4">Type of program:</span> Provident fund, social insurance, and social assistance system.</p>
<p>Note: The Employees Provident Fund (<abbr class="spell">EPF</abbr>) provides two types of accounts that finance <span class="nobr">old-age,</span> survivors, and disability benefits. A portion of the Account&nbsp;1 balance may be used to invest with an external manager. A portion of the Account&nbsp;2 may be used for education, designated critical illnesses, or to purchase a house.</p>
<h3>Coverage</h3>
<p><span class="h4">Provident fund:</span> Private-sector employees and certain public-sector employees not covered by the separate public-sector system.</p>
<p>Voluntary coverage for household workers, self-employed persons, and foreign workers.</p>
<p>Special systems for public-sector employees and military personnel.</p>
<p><span class="h4">Social insurance:</span> Employees earning up to 3,000&nbsp;ringgits a month. Previously enrolled employees earning more than 3,000&nbsp;ringgits must continue to contribute.</p>
<p>Voluntary coverage for employees earning more than 3,000&nbsp;ringgits a month when first employed; there must be an agreement between the employer and the employee.</p>
<p>Exclusions: Household workers, self-employed persons, and foreign workers.</p>
<p>Special systems for public-sector employees and military personnel.</p>
<p><span class="h4">Social assistance:</span> Needy elderly persons.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person</span></p>
<p><span class="h5">Provident fund:</span> 11% of monthly earnings for private-sector employees younger than age&nbsp;60; 5.5% of monthly earnings for members aged&nbsp;60 to 75. (70% and 30% of monthly contributions are allocated to Accounts&nbsp;1 and 2, respectively.)</p>
<p>Insured persons and their spouses and children can make additional contributions to Account&nbsp;1.</p>
<p>The minimum monthly earnings used to calculate contributions are 10&nbsp;ringgits.</p>
<p>There are no maximum earnings used to calculate contributions.</p>
<p>Up to 6,000&nbsp;ringgits a year of the insured person's contributions to the <abbr class="spell">EPF</abbr> are tax deductible.</p>
<p><span class="h5">Social insurance:</span> 0.5% of monthly earnings, according to 34&nbsp;wage classes.</p>
<p>There are no minimum monthly earnings used to calculate contributions.</p>
<p>The maximum monthly earnings used to calculate contributions are 3,000&nbsp;ringgits.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Self-employed person</span></p>
<p><span class="h5">Provident fund:</span> 50 to 5,000&nbsp;ringgits a month.</p>
<p><span class="h5">Social insurance:</span> Not applicable.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Employer</span></p>
<p><span class="h5">Provident fund:</span> 13% of monthly earnings for members younger than age&nbsp;60 earning up to 5,000&nbsp;ringgits, 12% if earning 5,001&nbsp;ringgits or more; 6.5% for members aged&nbsp;60 to 75 earning up to 5,000&nbsp;ringgits; 6% if earning 5,001&nbsp;ringgits or more. (70% and 30% of monthly contributions are allocated to Accounts&nbsp;1 and 2, respectively.)</p>
<p>Employers can make additional contributions.</p>
<p><span class="h5">Social insurance:</span> 0.5% of monthly payroll, according to 34 wage classes.</p>
<p>There are no minimum monthly earnings used to calculate contributions.</p>
<p>The maximum monthly earnings used to calculate contributions are 3,000&nbsp;ringgits.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Government</span></p>
<p><span class="h5">Provident fund:</span> For self-employed persons and household workers, 10% of contributions up to 120&nbsp;ringgits a year is allocated to members' Account&nbsp;1.</p>
<p><span class="h5">Social insurance:</span> None.</p>
<p><span class="h5">Social assistance:</span> The total cost.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Provident fund</span></p>
<p><span class="h5">Old-age benefit:</span> Age&nbsp;55 to withdraw all funds (Account&nbsp;1 and 2). Other withdrawals can be made under specified conditions:</p>
<p><span class="h5">Drawdown payment:</span> 20% of the funds can be drawn down before age&nbsp;55 for investment in unit trusts through external fund management institutions approved by the Ministry of Finance. Members must have at least 5,000&nbsp;ringgits more than the required basic savings level based on their age.</p>
<p>The basic savings level ranges from 1,000&nbsp;ringgits (age&nbsp;18) to 196,800&nbsp;ringgits (age&nbsp;55).</p>
<p><span class="h5">Leaving the country withdrawal:</span> May withdraw all funds at any age if the member permanently emigrates from Malaysia or is a foreign worker who returns home after the job contract expires.</p>
<p><span class="h5">Purchase of house withdrawal:</span> May use these funds to purchase a house (one time) or&nbsp;to reduce monthly mortgage payments.</p>
<p><span class="h5">Health withdrawal:</span> See Sickness and Maternity.</p>
<p><span class="h5">Education withdrawal:</span> May use these funds to help pay for their children's higher education in an undergraduate or graduate degree program at an approved university.</p>
<p><span class="h5">Age&nbsp;50 withdrawal:</span> A <span class="nobr">one-time</span> withdrawal from Account&nbsp;2 at age&nbsp;50.</p>
<p>Members are not required to retire at age&nbsp;55 and may withdraw all or part of their funds and continue working up to age&nbsp;75. Members who are still working and do not withdraw their funds at age&nbsp;55 must continue to make contributions to the <abbr class="spell">EPF</abbr>. Those fund members who withdraw all of their funds (Accounts&nbsp;1 and 2) at age&nbsp;55 can choose to rejoin and contribute to the <abbr class="spell">EPF</abbr> if still employed or working in a new job.</p>
<p><span class="h5">Incapacitation benefit:</span> Must be assessed by a medical doctor as mentally or physically unable to work. Fund members may be referred to an <abbr class="spell">EPF</abbr> panel to confirm the disability assessed by the medical doctor.</p>
<p>Additional benefit: Paid up to age&nbsp;55.</p>
<p><span class="h5">Survivor benefit:</span> Paid to the named beneficiary (non-Muslims) or administrator (Muslims). In the absence of a named beneficiary, the benefit is paid (in order of priority) to the spouse, children, parents, and siblings.</p>
<p><span class="h5">Hajj withdrawal:</span> Paid up to age&nbsp;55 to cover expenses related to a member's first Hajj pilgrimage if there are insufficient savings in the member's Lembaga Tabung Haji (<abbr class="spell">LTH</abbr>) account. (The purpose of the account is to save for a pilgrimage. <abbr class="spell">LTH</abbr> invests according to Islamic principles.) The insured needs a letter from <abbr class="spell">LTH</abbr> indicating &ldquo;Selected&rdquo; status and evidence of insufficient savings.</p>
<p>All provident fund benefits are payable abroad.</p>
<p><span class="h4">Social insurance</span></p>
<p><span class="h5">Disability pension:</span> Must be younger than age&nbsp;60, with at least a 66.7% assessed loss of earning capacity, have at least 24&nbsp;months of contributions in the last 40&nbsp;months; or have contributions in at least 66.7% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p>Reduced disability pension: The insured paid contributions for at least 33.3% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p>A medical board appointed by the Social Security Organization in consultation with the Ministry of Health assesses the degree of disability.</p>
<p>Constant-attendance allowance: Paid if the insured requires the constant attendance of others to perform daily functions.</p>
<p><span class="h5">Invalidity grant:</span> Paid if the insured is ineligible for a disability pension but has at least 12&nbsp;months of contributions.</p>
<p><span class="h5">Survivor pension:</span> The deceased had at least 24&nbsp;months of contributions in the last 40&nbsp;months before death; or had contributions in at least 66.7% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p>Reduced survivor pension: The deceased paid contributions for at least 33% of the months since first becoming insured, with a total of at least 24&nbsp;months of contributions.</p>
<p>Eligible survivors include a <span class="nobr">widow(er)</span> and unmarried children younger than age&nbsp;21 (or until the completion of an undergraduate degree, no limit if disabled).</p>
<p>The spouse's pension ceases on remarriage.</p>
<p><span class="h5">Other eligible survivors:</span> Paid to the parents (grandparents if the parents are deceased) and to unmarried dependent brothers and sisters younger than age&nbsp;21.</p>
<p><span class="h5">Funeral grant:</span> Paid to the insured's dependents, next of kin, or the individual who paid for the funeral.</p>
<p><span class="h4">Noncontributory <span class="nobr">old-age</span> pension (social assistance, mean tested):</span> Age&nbsp;60, assessed as needy, with no financial support from other family members.</p>
<h3>Old-Age Benefits</h3>
<p><span class="h4">Provident fund</span></p>
<p><span class="h5">Accounts&nbsp;1 and 2:</span> Members can withdraw total or partial savings through a <span class="nobr">lump-sum</span> withdrawal (employee and employer contributions plus compound interest minus drawdown payments); a monthly pension of at least 250&nbsp;ringgits for at least one year; a withdrawal at any time of at least 2,000&nbsp;ringgits a month; a combination of the last two options or a withdrawal of only the annual dividend by keeping the principal in Account&nbsp;1.</p>
<p>The minimum amount that can be invested is 1,000&nbsp;ringgits; the maximum is 20% of the amount above the required basic savings level.</p>
<p>The basic savings level ranges from 1,000&nbsp;ringgits (age&nbsp;18) to 196,800&nbsp;ringgits (age&nbsp;55).</p>
<p>The guaranteed minimum interest rate is 2.5% a year. If funds remain in the accounts after age&nbsp;55, members continue to earn compound interest until age&nbsp;75.</p>
<p><span class="h5">Leaving the country withdrawal:</span> A lump sum of total employee and employer contributions (Accounts&nbsp;1 and 2) plus compound interest minus drawdown payments is paid.</p>
<p><span class="h5">Purchase of house withdrawal:</span> The difference between the mortgage loan plus house price plus 10% of the house price and the balance in Account&nbsp;2, whichever is lower, is paid.</p>
<p><span class="h5">Health withdrawal:</span> See Sickness and Maternity.</p>
<p><span class="h5">Education withdrawal:</span> Education fees or the balance in Account&nbsp;2, whichever is lower, is paid to the university or the member.</p>
<p><span class="h5">Age&nbsp;50 withdrawal:</span> A lump sum of employee and employer contributions (Account&nbsp;2) plus compound interest minus drawdown payments is paid.</p>
<p><span class="h5">Hajj withdrawal:</span> The difference between the cost of Hajj and the amount in the <abbr class="spell">LTH</abbr> savings account is paid up to a maximum of 3,000&nbsp;ringgits.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Incapacitation benefit (provident fund):</span> A lump sum of total employee and employer contributions (Accounts&nbsp;1 and 2) plus compound interest minus drawdown payments is paid.</p>
<p>The guaranteed minimum interest rate is 2.5% a year.</p>
<p>Additional benefit (provident fund): A lump sum of 5,000&nbsp;ringgits is paid.</p>
<p><span class="h4">Disability pension (social insurance):</span> 50% to 65% of the insured's average monthly earnings in the 24&nbsp;months before the disability began is paid, depending on the number of contributions.</p>
<p>The maximum pension is 65% of the insured's average monthly earnings in the 24&nbsp;months before the disability began.</p>
<p>The maximum pension is 1,917.55&nbsp;ringgits.</p>
<p>The maximum monthly earnings used to calculate benefits are 2,950&nbsp;ringgits.</p>
<p>Reduced disability pension: 50% of the insured's average monthly earnings in the 24&nbsp;months before the disability began is paid.</p>
<p>The minimum monthly pension is 475&nbsp;ringgits.</p>
<p>Constant-attendance allowance: 40% of the insured's pension (up to 500&nbsp;ringgits a month) is paid.</p>
<p><span class="h4">Invalidity grant (social insurance):</span> A lump sum of total employer and employee contributions plus aaccrued interest is paid.</p>
<p>Benefit adjustment: Social insurance benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<p><span class="h4">Noncontributory <span class="nobr">old-age</span> pension (social assistance, means tested):</span> 300&nbsp;ringgits a month is paid.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor benefit (provident fund):</span> A lump sum of total employee and employer contributions (Accounts&nbsp;1 and 2) plus compound interest minus drawdown payments is paid.</p>
<p>The guaranteed minimum interest rate is 2.5% a year.</p>
<p>Additional benefit (provident fund): A lump sum of 2,500&nbsp;ringgits is paid.</p>
<p><span class="h4">Survivor pension (social insurance):</span> If the deceased was a disability pensioner, 100% of the disability pension is paid; if the deceased was employed at the time of death, 50% to 65% of the insured's average monthly earnings in the 24&nbsp;months before death is paid, depending on the number of contributions.</p>
<p>The survivor pension is split as follows: 60% of the benefit is paid to the eligible <span class="nobr">widow(er)</span> and 40% to eligible children.</p>
<p>If there are no other eligible survivors, 40% of the benefit is paid to parents or grandparents and 30% to eligible siblings up to age&nbsp;21.</p>
<p>Reduced survivor pension: 50% of the deceased's average monthly earnings in the 24&nbsp;months before death is paid.</p>
<p>The minimum monthly survivor pension is 475&nbsp;ringgits.</p>
<p><span class="h4">Funeral grant (social insurance):</span> Up to 1,500&nbsp;ringgits is paid.</p>
<p>Benefit adjustment: Social insurance benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<h3>Administrative Organization</h3>
<p><span class="h4">Provident fund:</span> Ministry of Finance (http://www.treasury.gov.my) provides general supervision.</p>
<p>Employees Provident Fund (http://www.kwsp.gov.my), managed by a tripartite governing board, administers contributions and benefits and is responsible for investing members' funds.</p>
<p><span class="h4">Social insurance:</span> Ministry of Human Resources (http://www.mohr.gov.my) provides general supervision.</p>
<p>Social Security Organization (<abbr>SOCSO</abbr>) (<a href="https://www.perkeso.gov.my/">http://www.perkeso.gov.my</a>), managed by a tripartite governing board, administers contributions and benefits.</p>
<p><span class="h4">Social assistance:</span> Ministry of Women, Family, and Community Development (<abbr class="spell">KPWKM</abbr>) (<a href="https://www.kpwkm.gov.my">http://www.kpwkm.gov.my</a>) provides general supervision for social assistance benefits.</p>
<p>Department of Social Welfare (<abbr class="spell">JKMM</abbr>) administers benefits through local branches.</p>
<h2>Sickness and Maternity</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First laws:</span> 1951 (provident fund), 1955 (public health) and 1955 (maternity).</p>
<p><span class="h4">Current law:</span> 1955 (maternity), 1991 (provident fund), and 2012 (maternity).</p>
<p><span class="h4">Type of program:</span> Provident fund (medical benefits only) and employer-liability (maternity) system.</p>
<h3>Coverage</h3>
<p><span class="h4">Cash sickness benefits:</span> No statutory benefits are provided.</p>
<p><span class="h4">Cash maternity benefits (employer liability):</span> Employed persons.</p>
<p>Exclusions: Self-employed persons.</p>
<p><span class="h4">Medical benefits:</span> Private-sector employees and certain public-sector employees not covered by the separate public-sector system.</p>
<p>Voluntary coverage for household workers, self-employed persons, foreign workers, and pensionable public-sector employees.</p>
<p>Special system for public-sector employees and military personnel.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person</span></p>
<p><span class="h5">Cash maternity benefits:</span> None.</p>
<p><span class="h5">Medical benefits:</span> Contributes to Account&nbsp;2. See source of funds (provident fund) under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Self-employed person</span></p>
<p><span class="h5">Cash maternity benefits:</span> Not applicable.</p>
<p><span class="h5">Medical benefits:</span> Contributes to Account&nbsp;2. See source of funds (provident fund) under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Employer</span></p>
<p><span class="h5">Cash maternity benefits:</span> The total cost.</p>
<p><span class="h5">Medical benefits:</span> Contributes to an employee's Account&nbsp;2. See source of funds (provident fund) under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Government</span></p>
<p><span class="h5">Cash maternity benefits:</span> None.</p>
<p><span class="h5">Medical benefits:</span> None for the provident fund; subsidizes public health care services from general revenues.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Cash sickness benefits:</span> No statutory benefits are provided.</p>
<p><span class="h4">Cash maternity benefits (employer liability):</span> Must have been employed in the last four months and have worked for the same employer for at least 90&nbsp;days in the last nine months.</p>
<p><span class="h4">Medical benefits:</span> Provident fund members.</p>
<h3>Sickness and Maternity Benefits</h3>
<p><span class="h4">Sickness benefit:</span> No statutory benefits are provided</p>
<p><span class="h4">Maternity benefit (employer liability):</span> The insured's wage or the rate set by the Minister of Labour, whichever is greater, is paid for at least 60&nbsp;days.</p>
<h3>Workers' Medical Benefits</h3>
<p>Fund members can withdraw savings from Account&nbsp;2 to pay for medical treatment for a critical illness, if the employer does not provide full coverage for such treatment. The <abbr class="spell">EPF</abbr> Board provides a list of 55 designated critical illnesses.</p>
<p>The Ministry of Health provides public health care services with some cost sharing.</p>
<h3>Dependents' Medical Benefits</h3>
<p>Medical benefits for dependents are the same as those for the insured.</p>
<h3>Administrative Organization</h3>
<p><span class="h4">Cash maternity benefits:</span> Ministry of Human Resources (http://www.mohr.gov.my/) provides general supervision.</p>
<p><span class="h4">Medical benefits:</span> Ministry of Health (<a href="http://www.moh.gov.my">http://www.moh.gov.my</a>) provides general supervision.</p>
<p>Employees Provident Fund (http://www.kwsp.gov.my), managed by a tripartite governing board, administers contributions and benefits and is responsible for investing members' funds.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First and current law:</span> 1969 (social security).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>Employees earning up to 3,000&nbsp;ringgits a month. Previously enrolled employees earning more than 3,000&nbsp;ringgits must continue to contribute.</p>
<p>Voluntary coverage for employees earning more than 3,000&nbsp;ringgits a month; there must be an agreement between the employer and the employee.</p>
<p>Exclusions: Household workers, military personnel, spouses of business owners, and self-employed persons.</p>
<p>Special systems for public-sector employees, foreign workers, and military personnel.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> 0.5% of monthly earnings, according to 34 wage classes.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> 1.25% of monthly payroll, according to 34&nbsp;wage classes.</p>
<p>There are no minimum monthly earnings used to calculate contributions.</p>
<p>The maximum monthly earnings used to calculate contributions are 3,000&nbsp;ringgits.</p>
<p><span class="h4">Government:</span> None.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
<p><span class="h4">Temporary disability benefit:</span> Must be certified by a medical doctor to be unfit for work for at least four days.</p>
<h3>Temporary Disability Benefits</h3>
<p>80% of the insured's average daily wage in the six months before the disability began is paid during the employee's medical leave.</p>
<p>The minimum daily benefit is 30&nbsp;ringgits.</p>
<p>The maximum daily benefit is 78.67&nbsp;ringgits.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Permanent disability pension:</span> For a total (100%) disability, 90% of the insured's average daily wage in the six months before the disability began is paid.</p>
<p>The minimum daily benefit is 30&nbsp;ringgits.</p>
<p>The maximum daily benefit is 88.50&nbsp;ringgits.</p>
<p>Constant-attendance allowance (total permanent disability): 40% of the insured's pension (up to 500&nbsp;ringgits a month) is paid if the insured requires the constant attendance of others to perform daily functions.</p>
<p>Partial disability: A percentage of the full pension is paid according to the assessed degree of disability.</p>
<p>The minimum daily benefit for a permanent partial disability is 30&nbsp;ringgits.</p>
<p>If the disability is assessed as less than 20%, the insured can request the benefit as a lump sum. If the disability is at least 20%, the insured is paid monthly, and may request up to 20% of the benefit as a lump sum.</p>
<p>Benefit adjustment: Benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<h3>Workers' Medical Benefits</h3>
<p>Benefits include necessary medical treatment, hospitalization, medicine, artificial limbs and other prosthetic appliances, and physical and vocational rehabilitation.</p>
<p>Government hospitals and physicians under contract with the Social Security Organization provide care.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension:</span> 60% of the full daily benefit is paid to the widow (the widower if previously the insured's dependent) and 40% to unmarried children (60% to full orphans) younger than age&nbsp;21 (until the completion of a graduate degree, no limit if disabled).</p>
<p>The full daily benefit is 90% of the insured's average daily wage in the six months before death.</p>
<p>The spouse's pension continues on remarriage.</p>
<p><span class="h4">Other eligible survivors:</span> 40% of the full daily benefit is paid to parents (grandparents if the parents are deceased) and 30% to unmarried dependent brothers and sisters younger than age&nbsp;21.</p>
<p>The minimum daily survivor benefit is 30&nbsp;ringgits.</p>
<p>The maximum daily survivor benefit is 88.50&nbsp;ringgits.</p>
<p>Benefit adjustment: Benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<p><span class="h4">Funeral grant:</span> Up to 1,500&nbsp;ringgits is paid to the person who paid for the funeral. The benefits are paid (in order of priority) to the deceased's surviving spouse, orphans, or parents.</p>
<p>Benefit adjustment: Benefits are adjusted according to changes in the cost of living and the social insurance system's finances.</p>
<h3>Administrative Organization</h3>
<p>Ministry of Human Resources (http://www.mohr.gov.my) provides general supervision.</p>
<p>Social Security Organization (<abbr>SOCSO</abbr>) (<a href="https://www.perkeso.gov.my/">http://www.perkeso.gov.my</a>), managed by a tripartite governing board, administers contributions and benefits and contracts with health care providers for medical services.</p>
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