PERKESO LINDUNG 24 Jam 2026: Complete Employer Payroll and Opt-Out Guide

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August 6, 2026

PERKESO LINDUNG 24 Jam 2026: Complete Employer Payroll and Opt-Out Guide

Malaysia’s new PERKESO LINDUNG 24 Jam scheme has created an unusual payroll challenge for employers.

The scheme took effect on 1 June 2026 as compulsory protection for eligible employees. Following a Cabinet decision in July 2026, participation became voluntary for Malaysian employees but remained compulsory for foreign employees.

However, voluntary participation does not mean that employers should immediately stop deductions for every Malaysian employee. Existing Malaysian employees who do not wish to participate must complete the prescribed opt-out process. Those who do not opt out by 31 August 2026 will continue participating automatically.

Employers must therefore manage employees who remain in the scheme, Malaysian employees who validly opt out, employees whose deductions were processed before their opt-out, foreign employees who must continue contributing, employees working for more than one employer and new employees who must be given an opportunity to make their decision.

This guide explains the current rules and the practical payroll steps Malaysian employers should take.

Important: This article reflects PERKESO guidance available on 5 August 2026. Employers should check for subsequent official announcements before making payroll changes.

What Is PERKESO LINDUNG 24 Jam?

LINDUNG 24 Jam is the public name for the Skim Kemalangan Bukan Bencana Kerja, commonly abbreviated as SKBBK.

It extends social security protection to qualifying accidents that are not related to an employee’s work. This may include eligible accidents occurring:

At home;
During recreational activities;
On rest days;
On public holidays;
Outside normal working hours; or
During other personal activities within Malaysia.

It complements the existing Employment Injury Scheme. It does not replace existing protection for workplace injuries or qualifying commuting accidents.

Official reference: PERKESO LINDUNG 24 Jam overview

Is LINDUNG 24 Jam Compulsory in 2026?

Malaysian employees

Participation is now voluntary for Malaysian employees. For existing employees, however, the mechanism operates on an opt-out basis. A Malaysian employee who does not want the coverage must complete the PERKESO declaration within the prescribed period. An employee who takes no action will continue participating.

Foreign employees

LINDUNG 24 Jam remains compulsory for foreign employees covered by the applicable PERKESO requirements. An employer should not add a foreign employee to its SKBBK exclusion list merely because the employee asks to opt out. The employer should obtain written clarification from PERKESO if there is any doubt about the employee’s status.

June 2026 contributions

All June 2026 SKBBK contributions were compulsory under the law then in force. According to PERKESO’s updated FAQ:

Paid June 2026 contributions are not refundable.
Unpaid June 2026 contributions remain payable.
Employers that omitted the June contribution must rectify the shortfall based on the applicable contribution schedule.

This remains the case even if a Malaysian employee subsequently opts out.

What Is the LINDUNG 24 Jam Opt-Out Deadline?

Existing Malaysian employees may opt out from 13 July to 31 August 2026. If an existing employee does not complete the opt-out process by 31 August 2026, PERKESO will treat the employee as continuing to participate.

Employers should not interpret silence, a verbal request or an informal WhatsApp message as sufficient evidence of opt-out. Payroll should only be changed after the required declaration or verified PERKESO status is obtained.

Can an employee wait and opt out later?

Based on current PERKESO guidance, an existing participating employee cannot simply decide several months later to discontinue contributions. This is why employers should communicate the deadline clearly while ensuring that the decision remains the employee’s own voluntary choice. Employers should explain the scheme and process but should not pressure employees to remain or opt out.

How Much Is the LINDUNG 24 Jam Contribution?

The contribution is fully borne by the employee. Employers are responsible for deducting and remitting it.

Period	Rate
1 June 2026-31 May 2028	0.75%
1 June 2028-31 May 2031	1.00%
From 1 June 2031	1.25%

The current wage ceiling is RM6,000 per month. Although the first-phase rate is described as 0.75%, payroll teams should use the official PERKESO contribution schedule rather than independently multiplying wages by 0.75%. SOCSO contributions are applied according to prescribed wage bands and amounts.

At the current ceiling, the SKBBK employee contribution is approximately RM44.65 per month, subject to the official table.

Does the employer pay an additional contribution?

No additional SKBBK employer share is imposed under the current arrangement. Nevertheless, the employer has an administrative and compliance responsibility to:

Apply the correct contribution category;
Deduct the prescribed amount;
Submit accurate contribution data;
Remit the contribution;
Reconcile payment records; and
Retain supporting documentation.

What Does LINDUNG 24 Jam Cover?

Subject to PERKESO’s eligibility and claims assessment, benefits may include:

Medical benefit;
Temporary disablement benefit;
Permanent disablement benefit;
Constant-attendance allowance;
Dependants’ benefit;
Funeral benefit;
Rehabilitation; and
Education-related benefits where applicable.

The scheme is designed for eligible accidental injury or death not connected with employment.

What is not covered?

Accidents outside Malaysia;
Illnesses such as fever, diabetes or high blood pressure;
Employment injuries already covered under the Employment Injury Scheme;
Self-employment injuries governed by the self-employed scheme;
Certain domestic employment injuries; and
Cases where the worker is not registered or actively contributing.

Coverage is not the same as a general medical card, life insurance policy or critical illness policy. Employers should avoid promising that a particular incident will be approved. PERKESO determines whether an accident and claim qualify.

LINDUNG 24 Jam Versus Private Insurance

Employees frequently ask whether they need LINDUNG 24 Jam if they already have a medical card or personal accident policy. Employers should not make the decision for them.

A medical card typically focuses on eligible hospital and medical expenses. Personal accident insurance may offer lump-sum or other benefits subject to its policy terms. LINDUNG 24 Jam is a statutory social security scheme that may provide income-replacement and dependants’ benefits. These forms of protection are not necessarily identical.

An employee should consider:

Existing medical and personal accident coverage;
Exclusions in private policies;
Income protection needs;
Dependants and family commitments;
Whether private coverage continues after employment ends;
Premium affordability; and
Benefits potentially available under LINDUNG 24 Jam.

Having private insurance does not automatically disqualify an employee from making an eligible PERKESO claim. Any private insurance claim remains subject to the terms of the particular policy.

What Employers Should Do When an Employee Opts Out

Step 1: Issue a neutral employee communication

Explain what the scheme is, that it is voluntary for Malaysian employees, that foreign employees remain compulsory contributors, the 31 August 2026 deadline, where to complete the declaration, and that no action is needed to continue. Avoid recommending one choice.

Step 2: Ask the employee to complete the official process

The employee should use the prescribed PERKESO channel, including the Portal Lindung Faedah or another process recognised by PERKESO. Where the online process cannot be used, the prescribed offline Liability Release Notice may apply.

Step 3: Obtain or verify supporting evidence

Maintain the declaration, PERKESO notification, ASSIST status, date received, affected payroll month and adjustment records. Do not rely only on a verbal instruction.

Step 4: Update payroll before cut-off

Create a controlled exclusion list containing employee number, name, NRIC, opt-out date, evidence reference, effective payroll month, reviewer and configuration date.

Step 5: Recalculate payroll where necessary

If the eligible status is received before payroll is finalised, remove SKBBK for the relevant contribution month. If salary has been paid, determine whether the amount should be refunded off-cycle, credited in the next payroll or recovered through the statutory refund process.

Step 6: Reconcile the ASSIST contribution record

The payroll register, contribution file, ASSIST status and payment total should agree.

Step 7: Retain an audit trail

Keep the employee communication, declaration, original and revised calculations, refund record, payslip adjustment, correspondence and submission confirmation.

Can July 2026 Contributions Be Refunded?

PERKESO’s latest FAQ distinguishes June from July:

June 2026: Mandatory and not refundable.
July 2026 onward: A refund may be available where the contribution falls within an eligible opt-out period and meets PERKESO’s conditions.

The employer—not the employee—must submit the contribution refund application through ASSIST. PERKESO identifies the route as My Sites > Inspection Module > Refund.

Employers should confirm eligibility and the opt-out effective date before refunding salary. Refunding the employee without correcting or recovering the statutory payment may cause the payroll and PERKESO accounts to differ.

What If June 2026 SKBBK Was Not Deducted?

A later opt-out does not remove the June liability. PERKESO’s current position is that June 2026 was compulsory. An employer that did not include the contribution must rectify the underpayment and make the required deduction based on the official schedule.

Before deducting an arrear from a later salary, the employer should:

Verify the employee and contribution amount.
Explain the correction to the employee.
Display the arrear separately on the payslip.
Avoid combining it with the current-month contribution without explanation.
Retain the recalculation and payment evidence.

What About New Malaysian Employees?

The August deadline mainly concerns existing Malaysian employees. PERKESO’s FAQ provides a separate process for newly registered Malaysian employees. A new employee who does not wish to participate must opt out within the applicable period following registration, currently stated as 30 days from registration.

Employers should incorporate the process into onboarding:

Register the employee with PERKESO promptly.
Provide neutral information about LINDUNG 24 Jam.
Inform the employee of the applicable deadline.
Obtain verified opt-out evidence before suppressing the first deduction.
Default to the PERKESO status where no valid opt-out has been recorded.

A new employee’s statement that they opted out with a previous employer should not automatically be treated as sufficient. HR should verify the current PERKESO status and applicable procedure.

What If an Employee Has More Than One Employer?

LINDUNG 24 Jam protection should not be duplicated across two employers. An employee with multiple employers who remains in the scheme should have only one selected employer making the SKBBK deduction.

If no employer is selected, PERKESO may assign one based on its criteria. The updated FAQ identifies circumstances in which the selected employer may be changed, such as:

Employment with the selected employer ends;
The employer ceases operations;
No salary is paid for a period; or
A change to the employer paying the higher salary.

Payroll teams should not stop deductions merely because the employee says another employer is paying. Obtain confirmation of the selected employer or verify the ASSIST status first.

What If No Salary Is Paid for a Month?

PERKESO’s FAQ states that where no salary and no contribution are paid for a particular month, the employee is not protected under LINDUNG 24 Jam for that contribution month. This may affect employees on extended no-pay leave. Employers should not report invented wages solely to keep coverage active.

How Can an Employee Opt Out?

A Malaysian employee has two recognised opt-out methods during the initial selection period.

Option 1: Portal Lindung Faedah

The employee may complete the opt-out selection through the official Portal Lindung Faedah. The employee should choose the option indicating that they do not wish to participate and submit the declaration.

Option 2: Liability Release Notice

The employee may complete the prescribed Notis Pelepasan Liabiliti Skim LINDUNG 24 Jam. Where the offline process is used, the completed form should be submitted through the channel prescribed by PERKESO, including the nearest PERKESO office where applicable. Download from this link:

PERKESO LINDUNG 24 Jam overview

The employee must confirm that the decision was made voluntarily and without pressure or coercion. Employers may explain the scheme and payroll consequences but should not direct employees to opt out or remain.

Can an Employee Opt In Again After Opting Out?

Yes. A Malaysian employee who previously opted out may subsequently opt in.

Unlike the opt-out process, the current opt-in procedure requires the employee to:

Complete the Borang Penyertaan Skim LINDUNG 24 Jam, or Participation Form.
Submit the completed form to the nearest PERKESO office.

The opt-in becomes effective from the date and time the selection is submitted to PERKESO. The employer must begin deducting the contribution from the employee’s salary for the month in which the opt-in is submitted. The full monthly contribution is payable even if the employee opts in partway through the month.

Can the employee opt out again later?

No. Once the employee opts in, the employee must continue participating under the “Sekali Layak, Terus Layak” or “Once In, Always In” principle. The same principle applies to an existing employee who does not opt out by 31 August 2026 and therefore continues in the scheme.

How Will Employers Know That an Employee Has Opted Out?

PERKESO will send a notification email to the registered employer after an employee completes the opt-out process. The notification normally identifies:

Employer code;
Employer name;
Employee’s name;
Employee’s NRIC number;
Date of opt-out; and
Contribution month from which the SKBBK deduction must stop.

For example, an employee who opted out on 14 July 2026 may be stated in PERKESO’s notification as having no LINDUNG 24 Jam contribution from the July 2026 contribution month. The employee’s other applicable PERKESO contributions continue without the additional SKBBK employee contribution.

After receiving the notification, the employer should:

Verify the employer and employee details.
Record the opt-out date and effective contribution month.
Update the payroll SKBBK exclusion list.
Recalculate payroll where it has not been finalised.
Refund or credit an eligible deduction already taken.
Apply for a statutory refund if the contribution was already paid to PERKESO.
Retain the email as supporting documentation.

Should Employers Continue July and August Deductions While Waiting for Opt-Out Evidence?

Yes. During the selection period, an existing Malaysian employee is treated as participating unless and until the employee completes a valid opt-out. The employer should continue the July and August deductions unless it has received or verified the employee’s opt-out status.

The employer should not stop the deduction merely because the employee says that they intend to opt out. Once PERKESO confirms the opt-out, the employer should follow the contribution month stated in the notification. If the effective contribution month has already been processed, the employer should correct the payroll and process any eligible employee and statutory refund.

What Happens When an Employee Resigns and Joins Another Employer?

LINDUNG 24 Jam participation follows the individual’s participation status, although contributions and active coverage depend on employment and payroll.

If an employee participated while working for Company A, later resigned and joined Company B, the employee does not receive a new opportunity to opt out merely because they changed employers. Under the “Once In, Always In” principle, the employee remains a participant. Company B should verify the employee’s PERKESO status and begin the applicable deduction after registration.

The employee may need to change the employer associated with the contribution, but cannot reverse the participation decision.

What Happens During Unemployment?

LINDUNG 24 Jam is linked to active employment and contribution. If a participating employee resigns and is temporarily unemployed:

The individual does not need to continue paying the contribution personally.
There is no employer to make the payroll deduction.
The individual is generally not actively protected during a month without wages and contribution.

When the individual obtains new employment, the existing participation status continues and the new employer should resume the applicable contribution. A self-employed individual may consider the separate LINDUNG Kendiri scheme, subject to eligibility.

Are Expatriates and Company Directors Included?

Expatriates

An expatriate with lawful employment status in Malaysia may fall within the foreign-employee category if the person is employed under a contract of service and covered under the Employees’ Social Security Act 1969. Holding private medical or international insurance does not remove the mandatory requirement. The expatriate must also comply with the conditions of the applicable employment pass or work permit.

Company directors

A company director is not automatically treated as an employee merely because the individual holds the office of director. The relevant question is whether the director is also employed under a contract of service and covered under Act 4. An executive director receiving wages under an employment relationship may be treated differently from a non-executive director who only receives directors’ fees. Employers should verify the person’s employment, remuneration, immigration and PERKESO registration status.

Additional Scenario: Employee intends to opt out but has not completed the process

An employee tells HR that they intend to opt out but has not used the portal or submitted the required form.

Recommended action: Continue the deduction. Do not change payroll until the opt-out is completed and verified.

Additional Scenario: PERKESO notification arrives after July payroll

An employee opted out on 14 July. PERKESO notifies the employer that no SKBBK deduction applies from the July contribution month, but July salary has already been paid.

Recommended action: Refund or credit the July deduction, issue a corrected payslip where necessary and apply for a statutory refund if the amount was already remitted.

Additional Scenario: Employee opts in after opting out

An employee previously opted out but submits the Participation Form to PERKESO on 20 October.

Recommended action: Begin the full monthly contribution from October payroll after verifying the submission. The employee cannot subsequently opt out again.

Additional Scenario: Participating employee joins a new company

An employee participated while working for Company A, resigned and joined Company B after a short employment gap.

Recommended action: Company B should verify the employee’s status and resume the deduction. The employee does not receive a new opt-out opportunity.

Additional Scenario: Employee is temporarily unemployed

A participating employee resigns and remains unemployed for two months before starting a new job.

Recommended action: No personal contribution is required during unemployment. Active contribution and protection resume through the new employer, subject to PERKESO’s requirements.

Additional Scenario: Expatriate or director status is unclear

Payroll is unsure whether a foreign director should be treated as a mandatory foreign employee.

Recommended action: Verify whether the individual has lawful employment status, a contract of service and coverage under Act 4. Do not decide based only on the title “director”.

Five Practical Employer Payroll Scenarios

Scenario 1: Employee opts out before August payroll closes

A Malaysian employee completes the official process on 8 August and payroll closes on 20 August.

Recommended action: Verify the declaration or ASSIST status, update the exclusion list, suppress the eligible August deduction and retain evidence. Do not remove the June contribution.

Scenario 2: July salary paid but contribution not remitted

A Malaysian employee opted out during July after payroll deducted SKBBK, but the employer has not submitted the PERKESO contribution.

Recommended action: Confirm that July is eligible, amend the contribution file, refund or credit the employee, issue a corrected payslip if necessary and retain both payroll versions.

Scenario 3: July contribution already remitted

The employee opted out after the July PERKESO payment was made.

Recommended action: Verify eligibility, apply for the refund through ASSIST and record the employee refund and statutory recovery separately. Do not claim a refund for June.

Scenario 4: Foreign employee requests to opt out

An expatriate says international medical and accident insurance makes SKBBK unnecessary.

Recommended action: Explain that LINDUNG 24 Jam remains compulsory for foreign employees. Continue the deduction unless PERKESO gives written instructions otherwise.

Scenario 5: Employee works for two companies

A part-time employee asks both payroll teams to deduct the contribution.

Recommended action: Do not duplicate deductions. Ask the employee to complete the prescribed employer-selection process and verify which employer should contribute.

Common Payroll Mistakes

Refunding June 2026 contributions: June was mandatory and is not refundable under current guidance.
Stopping deductions based on a verbal request: A valid declaration or verified status should support the change.
Treating voluntary participation as opt-in: For existing employees, taking no action means participation continues.
Allowing foreign workers to opt out: The voluntary arrangement applies to Malaysian employees.
Using a flat percentage: Apply prescribed wage-band amounts.
Forgetting employees above RM6,000: The ceiling limits the amount; it does not exclude higher-paid employees.
Deducting through two employers: Only one selected employer should contribute.
Failing to update onboarding: New Malaysian employees have a separate decision period.

Employer Action Plan

Immediately

Identify Malaysian and foreign employees.
Issue the deadline communication.
Review declarations already received.
Check whether July payroll requires correction.
Confirm that June contributions were fully remitted.

Before the August payroll cut-off

Verify the latest employee status.
Lock the authorised exclusion list.
Recalculate affected employees.
Review unusual cases separately.
Reconcile the PERKESO file before payment.

After 31 August 2026

Treat existing Malaysian employees without a valid opt-out as continuing participants.
Retain the final opt-out register.
Continue monitoring new hires.
Audit refunds and payroll corrections.
Check for further PERKESO announcements.

Key Takeaways

LINDUNG 24 Jam took effect from June 2026.
Participation is voluntary for Malaysian employees but compulsory for foreign employees.
Existing Malaysian employees must opt out by 31 August 2026 if they do not wish to participate.
Taking no action means participation continues.
June 2026 contributions are mandatory and not refundable.
Eligible contributions from July 2026 onward may be refundable.
Employers must use the official contribution schedule.
SKBBK is employee-funded, but employers administer deductions and payment.
Multiple-employer deductions must not be duplicated.
Every payroll adjustment should have a complete audit trail.

Conclusion

LINDUNG 24 Jam is not simply another payroll deduction. Its mid-year change from compulsory to voluntary participation for Malaysian employees has created a short but critical implementation period for HR and payroll teams.

The safest approach is to use verified PERKESO status, separate June treatment from July onward, maintain a controlled opt-out register and reconcile every payroll adjustment against ASSIST.

Employers should complete this review before their August payroll cut-off, not wait until the 31 August deadline.

CentralHR helps Malaysian employers manage payroll calculations, statutory submissions and employee records accurately. Contact CentralHR if your organisation requires payroll outsourcing or assistance reviewing its SKBBK configuration.

Frequently Asked Questions

1. What does SKBBK mean?

SKBBK stands for Skim Kemalangan Bukan Bencana Kerja. It is publicly known as LINDUNG 24 Jam.

2. Is LINDUNG 24 Jam compulsory for Malaysians?

Participation is voluntary, but existing Malaysian employees must opt out by 31 August 2026 if they do not wish to continue.

3. Is it compulsory for foreign workers?

Yes. It remains compulsory for foreign employees under current PERKESO guidance.

4. When did the scheme start?

It took effect from the June 2026 contribution month.

5. Who pays the contribution?

The contribution is fully borne by the employee. The employer deducts and remits it.

6. How much is the 2026 contribution?

The first-phase rate is 0.75%, based on the prescribed contribution schedule and the current RM6,000 wage ceiling.

7. What is the maximum monthly deduction?

Based on the official wage schedule, it is approximately RM44.65 at or above the current wage ceiling.

8. Must an employee opt in?

Existing eligible employees do not need to opt in. They continue automatically unless they opt out.

9. Can an employee opt out after 31 August 2026?

An existing employee who does not opt out by 31 August 2026 will continue participating and cannot later opt out under the “Once In, Always In” principle. However, an employee who validly opted out may subsequently opt in by submitting the prescribed Participation Form to PERKESO.

10. Can June 2026 contributions be refunded?

No. PERKESO states that June 2026 contributions were mandatory and cannot be refunded.

11. Can July contributions be refunded?

Potentially, if the contribution qualifies following a valid opt-out. The employer must apply through ASSIST.

12. Can employees request the refund themselves?

No. PERKESO’s FAQ states that the employer submits the statutory refund application.

13. Does it cover illness?

No. It concerns eligible accidents, not illnesses such as diabetes, fever or high blood pressure.

14. Does it cover accidents overseas?

No. Current coverage applies to qualifying accidents within Malaysia.

15. Does it cover commuting accidents?

Qualifying commuting accidents are generally addressed under the existing Employment Injury Scheme rather than SKBBK.

16. Can employees claim from private insurance too?

Potentially, subject to the private policy’s conditions. The schemes provide different forms of protection.

17. Does a medical card replace LINDUNG 24 Jam?

Not necessarily. A medical card generally focuses on medical expenses, while LINDUNG 24 Jam may provide statutory disablement and dependants’ benefits.

18. What happens when an employee has two employers?

Only one selected employer should make the SKBBK deduction.

19. Are part-time employees covered?

They may be covered if they are registered and meet PERKESO’s applicable eligibility requirements.

20. What happens during a no-pay month?

Where there is no salary and no contribution, PERKESO’s FAQ states that the employee is not protected for that month.

21. Will PERKESO notify the employer when an employee opts out?

Yes. PERKESO sends the employer a notification identifying the employee, opt-out date and effective contribution month. The employer should retain the notification and update payroll accordingly.

22. Should employers continue July and August deductions while waiting for an opt-out?

Yes. The employer should continue deducting until the employee completes a valid opt-out and the status is verified. Any eligible over-deduction can then be corrected based on PERKESO’s effective contribution month.

23. Can an employee opt in again after opting out?

Yes. The employee must complete the Borang Penyertaan Skim LINDUNG 24 Jam and submit it to the nearest PERKESO office.

24. When does an opt-in take effect?

It takes effect from the date and time the selection is submitted to PERKESO. The full contribution is payable from the employee’s salary for that month, even if the selection is submitted partway through the month.

25. Can the employee opt out again after rejoining?

No. Once the employee opts in, the employee remains in the scheme under the “Once In, Always In” principle.

26. What happens if a participating employee changes employers?

The participation status continues. The employee does not receive a fresh opt-out decision merely because they joined another employer. The contribution responsibility moves to the new employer.

27. Must an unemployed former employee continue paying personally?

No. There is no requirement for the unemployed individual to continue paying the contribution personally. Active protection generally depends on employment, wages and contribution.

28. Are expatriates included as foreign employees?

An expatriate lawfully employed in Malaysia under a contract of service and covered under Act 4 generally falls within the foreign-employee category and remains a mandatory participant.

29. Are company directors covered?

A director may be covered if the director is also an employee under a contract of service and falls under Act 4. Holding the office of director alone does not automatically determine coverage.

30. Does changing employer allow the employee to choose again?

No. A participating employee remains subject to the “Once In, Always In” principle. The employee may change the employer responsible for the contribution but cannot reverse the participation decision.

Official References

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