Maid insurance claims in Malaysia: what employers should keep

Employing a domestic worker in Malaysia comes with two separate protection obligations that are easy to confuse: registering the worker with PERKESO under the social security schemes that apply to them, and, in most cases, arranging a private policy for the worker as part of the employment arrangement. Each has its own paperwork, and a claim under either can be delayed or refused if the records were not kept from the start.

The SOCSO layer is compulsory, not optional

Since 1 June 2021, domestic workers, whether local or foreign, are covered under the Employees' Social Security Act 1969 and the Employment Insurance System Act, and registering them with PERKESO along with paying the required contributions is mandatory for the employer. This applies to housemaids, personal drivers, gardeners, cooks, caregivers, nannies and similar roles employed exclusively for a private household, not for any trade or business the employer runs.

Failing to register a domestic worker or pay the required contributions is an offence, carrying a fine of up to RM10,000, imprisonment of up to two years, or both. This is not a theoretical risk: it is the baseline compliance employers are expected to meet regardless of whether they also hold a private policy for the worker.

Coverage differs slightly by the worker's status. Local domestic workers are covered under both the Employment Injury Scheme and the Employment Insurance System, alongside an Invalidity Scheme benefit and the newer 24-hour non-employment injury scheme, LINDUNG 24 JAM. Foreign domestic workers are covered under the same framework that applies to foreign workers generally: the Employment Injury Scheme, an Invalidity Scheme (effective 1 July 2024), and eventually the non-employment injury scheme, but not the Employment Insurance System.

What SOCSO's schemes actually pay for

For an employment injury or occupational disease, PERKESO's benefits can include free medical treatment at panel clinics or government facilities, reimbursement where non-panel treatment was necessary, a temporary disablement benefit paid daily during certified medical leave of at least four days, a permanent disablement benefit assessed against the degree of disability, and a dependants' benefit if the worker dies as a result of the injury. These benefits are structured around workplace injury and occupational disease — they do not extend to a worker's general illness unrelated to their employment, or to matters outside the scope of the schemes the worker is registered under.

Paperwork that decides whether a claim goes through

Because both the SOCSO registration and any private policy depend on records the employer is responsible for, a few things are worth keeping from the day the worker starts:

1. Proof of registration and contribution payment, including receipts or the portal confirmation showing contributions were paid on time each month. A gap in contributions is the first thing that can complicate a claim.
2. The domestic worker's passport and work pass details for a foreign worker, since eligibility for the foreign worker schemes depends on these remaining valid throughout employment.
3. A dated record of any workplace accident, including how and when it happened, any medical certificate issued, and which clinic or hospital treated the worker — this is what supports a temporary or permanent disablement claim.
4. The employer circular or registration confirmation from PERKESO, kept alongside the worker's employment contract, in case a claim needs to establish the employment relationship itself.
5. Details of any separate private policy taken out for the worker, including the policy number, insurer contact details and what it covers, since this typically sits alongside, not instead of, the SOCSO registration.

Where the two layers do not overlap

SOCSO's schemes are specifically about employment injury, occupational disease, invalidity and, for local workers, unemployment insurance. They are not a general medical or life insurance product for the worker's everyday health needs outside those triggers. Employers who also hold a separate private policy for their domestic worker should check exactly what that private cover adds — often general medical treatment, repatriation, or a lump sum on death or disability from causes SOCSO's schemes do not reach — rather than assuming the two layers duplicate each other.

Talk to an advisor

Getting the registration, contribution records and any private policy paperwork right from the start of employment is what actually determines whether a claim, whether through PERKESO or a private insurer, is settled quickly. A licensed advisor can review what cover you currently hold for a domestic worker against what the law requires. Find one through our advisor directory, or ask our assistant to check which SOCSO scheme applies to your specific worker's status.

Sources

• PERKESO — Domestic Workers
• PERKESO — Foreign Workers