There is a proposal to increase the contribution of Socso, or more formally “Wang Keselamatan Sosial”. The reason given was that it has not adjusted contribution since many years ago .
Last year, Socso collected RM1.8 billion and gave out as compensation RM1.3 billion, according to news report. It has 0.5 billion net income to its coffers.
So why the need to increase contribution? Even though contribution is small in amount, since employers contribute 1.75% of a worker’s pay and the worker contributes 0.5% only, any increase at this moment will bite into the disposable income of people.
Furthermore, coming on the heels of cut in subsidies and increase in postage by Pos Malaysia ( a letter now needs a 60 cents stamp compared to 30 cents before), this will create an mentality among civil servants that they should increase rates for their own departments…
As I have mentioned, many salaried workers are finding it hard to cope with the rising standard of living. Disposable income is getting less. Living expenses have increase and life style changes (with handphones and internet bills to pay) all add up to a decreasing income among salaried workers .
Once socso charges increase, businessmen will also use this as an excuse to increase the price of their goods and services.. And the living costs will spiral up and up and up. KL is no more a cheap place to stay. Penang is getting expensive too.
The government should instead plug leakages and wastage first. There is another white elephant project apparently in Sabah, the Kudat Dam, read here for those who have not read it yet..