Lindung 24/7 expands social security coverage beyond workplace injuries

PETALING JAYA: The new Lindung 24/7 scheme by Perkeso, the social security organisation, extends protection beyond workplace accidents in a significant step towards strengthening Malaysia’s social safety net, says a researcher.

Fatin Nadirah of Khazanah Research Institute said Lindung 24/7 deepens protection for workers already contributing to Perkeso. “Employees are given broader protection, including accidents that occur outside working hours which are not directly related to their job or duties,” she told FMT.

She said Malaysia’s social security framework had for decades covered only injuries and deaths “in the course of employment,” leaving workers exposed during the rest of the day. Between 2023 and October 2025 alone, 12,306 claims were rejected because they were deemed non-work-related.

HELP University economist Chung Tin Fah said the coverage for non-work-related accidents such as slips and falls at home, sports injuries and recreational mishaps could reduce financial shocks for households.

In a recent case, Arnold Nathanael Lister from Penampang, who suffered spinal injuries after a fall at home, qualified for temporary disability benefits, physiotherapy and rehabilitation under Lindung 24/7.

Powered by worker contributions

Lindung 24/7 is fully worker-funded, unlike traditional Perkeso models funded mainly by employers. Contributions start at 0.75% of monthly wages, rising to 1% in year three and 1.25% from the sixth year onward.

For workers earning RM3,000 to RM5,000 a month, their Perkeso monthly contributions range from RM22.50 to RM37.50, deducted directly from their wages.

Employers remit the amount to Perkeso alongside the other usual monthly contributions, allowing eligible workers to receive coverage without taking up a separate policy.

Lindung 24/7 offers standardised protection to all contributors regardless of age as long as they remain employed, instead of benefits varying according to individual policy terms and coverage levels.

It also provides benefits such as temporary disability payments and rehabilitation support, helping workers cope with the financial impact of accidents and return to work.

Room for improvement, gaps in coverage

Fatin acknowledged that increased contributions would reduce take-home pay; for low-income employees, “even a small pinch affects their livelihood”. She said initiatives such as Lindung 24/7 should be coupled with “a broader agenda to strengthen the safety net for the wider population, while ensuring wages grow in line with productivity”.

She said the scheme also primarily benefits workers already covered under the Employees’ Social Security Act 1969, while many self-employed individuals and those outside formal employment arrangements continue to face protection gaps.

Chung said the true test of the scheme would only emerge after its implementation.

“Nothing is foolproof and we will only know where the gaps are upon implementing the scheme. Continuous improvement and change will be required,” he said.