admin 
Malaysia has made tremendous progress in SCARF towards giving mental health its rightful status in employee welfare. Minister of Human Resources Datuk Seri R. Ramanan recently announced that severe psychiatric illnesses such as depression and schizophrenia are under the Social Security Organisation framework. The clarification not only does it reinforce disability protection but also recognizes the increasing effects of workplace stress and long-term mental health issues.
The announcement comes as part of Malaysia’s reform initiatives to modernize the nation’s labour protection framework, to improve the financial assistance, rehabilitation and legal safeguards provided to workers faced with serious psychological diseases.
Two Pathways for Mental Health Protection
At present, SOCSO protects via two different schemes in act 4 “Employees’ Social Security act 1969”.
The Pencen Ilat is a scheme that provides support for workers in need due to chronic or non-work related mental health issues that make them permanently unable to earn an income. Pension benefits and financial grants, in addition to rehabilitation services, may be offered by PERKESO’s Return-to-Work schemes to eligible employees on a monthly basis.
The Employment Injury Scheme, however, only applies where mental health conditions are directly associated with trauma that occurred or risk factors to working, or a combined mix of trauma and risk factors. Under these situations, employees could obtain medical treatment, disability compensation and employment injury benefits.
Who Can Qualify Under the Invalidity Scheme?
Long term benefits are not available for all diagnoses. Applications need to be evaluated by SOCSO’s Special Medical Board or Appellate Medical Board, and must determine if the condition has permanently caused an impairment of the employee’s earning capacity.
In order for it to be considered the illness must cause the worker to lose at least one-third of the income that he would normally earn in a similar job. Applicants are also required to be less than 60 years old at the time of the claim and meet the necessary contribution records with SOCSO.
Workplace Depression and Occupational Disease
The minister explained an important distinction that can exist between general mental illness and mental illness caused by a person’s work. While the majority of cases of depression are dealt with under the Invalidity Scheme, Section 28 of Act 4 specifies that the Medical Board can see psychiatric conditions as occupational diseases in certain cases.
In cases where investigations establish the severity of the exposure to the worker at work, and/or trauma, or the occupation was a direct contributing factor to the condition, the employee may instead be covered by Enforcement of the Employment Injury Scheme.
Know Your Workplace Rights
What Counts As Workplace Discrimination?
Understand your legal protections.
Can Age Affect Your Career?
Find your rights at work.
Can Medical Leave Cost Jobs?
Look into employee legal protections.
Why Join A Trade Union?
Explore benefits for workplace rights.
Was Medical Leave Used Unfairly?
Uncover the latest discrimination case.
Modern Approach to Employee Wellbeing
Today, with the open acknowledgement of mental health, the new workplace reality is understood. These symptoms are associated with burn out, chronic stress, and mental health and are now seen as legitimate health problems now rather than just personal problems.
PERKESO thus offers better financial security for employees and a push for better attention towards a healthier workplace and early intervention for those with severe mental illnesses in Malaysia’s social protection system.
FAQs
Is clinical depression covered by SOCSO?
Yes. If the clinical depression, having a permanent adverse effect on the employability of the person, meets the statutory criteria, then they will be entitled to the benefits of the Invalidity Scheme under SOCSO.
Whose responsibility is it to decide who is eligible for mental health benefits?
Each claim is heard by SOCSO’s Special Medical Board (SMB) or Appellate Medical Board (AMB) and a decision is made as to whether the employee is deemed as meeting the medical standard of compensation or pension benefits.
