Applicability
s 3
(1) This Act shall apply to all industries having one or more employees. (2) In this section, “employees” include any employee employed by the immediate employer.
Employees’ Social Security Act 1969 Part II — Insurability and contributions
Registration of industries
s 4
Every industry to which this Act applies shall be registered with the Organization within such time and in such manner as may be specified in the regulations.
All employees to be insured
s 5
Subject to this Act, all employees in industries to which this Act applies shall be insured in the manner provided by this Act.
Contributions
s 6
(1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer’s contribution) and contribution payable by the employee (hereinafter referred to as the employee’s contribution) and shall be paid to the Organization. (2) The contributions shall fall into the following two categories, namely: (a) the contributions of the first category, being the contributions payable by or on behalf of the employees insured against the contingencies of invalidity and employment injury; and (b) the contributions of the second category, being the contributions payable by or on behalf of employees insured only against the contingency of employment injury. (3) The contributions of the various categories shall be paid at the rates specified in the Third Schedule. (4) The contributions of the first category shall be shared by the employer and the employee in the ratio specified in Part I of the Third Schedule. (5) The contributions of the second category shall be paid wholly by the employer. (6) The Minister, in consultation with the Minister of Finance may, by notification in the Gazette, amend, add to, vary or revise the rates of contributions specified in the Third Schedule. (7) A month shall be the unit in respect of which all contributions shall be payable under this Act. (8) The contributions payable in respect of each month shall ordinarily fall due on the last day of the month, and where an employee is employed by an employer for part of a month the contribution in respect of such month shall fall due on the last day of employment by such employer in that month. (9) Where two or more contributions are paid in respect of the same insured person for the same month, they shall be counted as a single monthly contribution. (10) In computing the average of assumed wage for the purpose of calculating the rate of pension or benefit payable under this Act, two or more monthly contributions paid in respect of the same insured person for the same month shall be treated as a single monthly contribution corresponding to the aggregate of the different assumed monthly wages to which the different contributions correspond: Provided that where the aggregate of the different assumed monthly wages to which the different contributions correspond exceed the maximum assumed monthly wage, the assumed monthly wage shall be such maximum monthly wage.
Principal employer to pay contributions in the first instance
s 7
(1) The principal employer shall pay in respect of every employee, whether directly employed by him or through an immediate employer, both the employer’s contribution and the employee’s contribution. (2) Notwithstanding anything contained in any other written law but subject to this Act and the regulations, if any, the principal employer shall, in the case of an employee directly employed by him, be entitled to recover from the employee the employee’s contribution by deduction from his wages and not otherwise: Provided that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee’s contribution for the period. (3) Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer’s contribution from any wages payable to an employee or otherwise to recover it from him. (4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.
Recovery of contribution from immediate employer
s 8
(1) A principal employer, who has paid contribution in respect of an employee employed by or through an immediate employer, shall be entitled to recover the amount of the contribution so paid (that is to say the employer’s contribution as well as the employee’s contribution, if any) from the immediate employer, either by deduction from any amount payable to him by the principal employer under any contract, or as a debt payable by the immediate employer. (2) In the case referred to in subsection (1), the immediate employer shall be entitled to recover the employee’s contribution from the employee employed by or through him by deduction from wages and not otherwise, subject to the conditions specified in the proviso of subsection 7(2).
General provisions as to payment of contributions
s 9
(1) Contribution (both the employer’s contribution and the employee’s contribution) shall be payable by the principal employer for each month in respect of the whole or part of which wages are payable to the employee and not otherwise. (2) (Deleted by Act A675).
Contributions where industry or employee is not insured or registered
s 9A
Contributions shall be payable in respect of employees from the month they enter into employment and such contributions are payable even though the industry to which this Act applies or the employees or both have not been insured or registered with the Organization: Provided that an employer who has paid arrears of contributions in respect of an employee will only be entitled to recover from the wages payable notwithstanding the proviso to subsection 7(2) the employee’s share of the contributions due within the last preceding six months prior to the date of payment.
Validation of contribution collected
s 9B
Any contribution collected by the Organization for an employee who was not registered for purposes of insurance under this Act for any period prior to 1 July 1987 is hereby validated and declared to have been lawfully collected.
Method of payment of contribution
s 10
Subject to this Act, the Minister may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Act and without prejudice to the generality of the foregoing power such regulations may provide for— (a) the manner and time of payment of contributions; (b) the payment of contributions either in cash or cheque or any other mode of payment; (c) the date by which evidence of contributions having been paid is to be received by the Organization; (d) the entry in an approved manner in or upon books or forms of particulars of contributions paid and benefits distributed in case of the insured persons to whom such books or forms relate; and (e) the issue, sale, custody, production, inspection and delivery of materials, books or forms or the replacement of materials, books or forms which have been lost, destroyed or defaced.
Employers to furnish returns and maintain registers in certain cases
s 11
(1) Every principal and immediate employer shall submit to the Organization or to such officer of the Organization as it may direct such returns in such form and containing such particulars relating to persons employed by him or to any industry in respect of which he is the principal or immediate employer as may be specified in the regulations made in this behalf. (2) Where, in respect of any industry, the Organization has reason to believe that a return should have been submitted under subsection (1) but has not been so submitted, the Organization may require any person in charge of the industry to furnish such particulars as it may consider necessary for the purpose of enabling the Organization to decide whether the industry is an industry to which this Act applies. (3) Every principal and immediate employer shall maintain such registers or records in respect of his industry as may be required by regulations made in this behalf.
Inspectors, their functions and duties
s 12
(1) The Minister may appoint such persons as Inspectors, as he thinks fit, for the purposes of this Act. (2) Subject to subsection (3), an Inspector appointed under subsection (1) shall have all the powers, functions and duties conferred under this Act. (3) An Inspector shall be subject to the direction and control of the Director General or of such other officer or servant of the Organization as may be authorized by the Director General to act on behalf of the Director General, and of any other Inspector superior to the Inspector in rank, and shall exercise his powers, perform his functions and discharge his duties under this Act in compliance with such directions, instructions, conditions, restrictions or limitations as the Director General, or an officer or servant of the Organization authorized to act on behalf of the Director General or any other Inspector superior to the Inspector in rank, may specify orally or in writing, either generally, or in any particular case or circumstances. (4) The Director General and Deputy Directors General shall have all the powers of an Inspector.
Powers of examination and search
s 12A
Subject to any regulations made under section 105, an Inspector may at any reasonable time— (a) make such examination and inquiry as may be necessary for ascertaining whether this Act or the regulations or rules made thereunder are being or have been complied with; (b) at any reasonable time enter any premises or place occupied by any principal employer or immediate employer for the purpose of such examination and inquiry; (c) examine the principal employer or immediate employer or his agent or servant or any person found in such premises or place or any person whom the Inspector has reasonable cause to believe to be or have been an employee; (d) make copies of or take extracts from any register, books or other documents maintained in such premises or place; and (e) exercise such other powers as may be necessary for carrying this Act into effect.
Obstruction to exercise of powers by an Inspector
s 12B
(1) No person shall— (a) refuse any Inspector exercising his power under section 12A access to any premises or place or any part thereof; (b) assult, obstruct, hinder or delay such Inspector in effecting any entrance which he is entitled to effect; (c) fail to comply with any lawful demands of an Inspector execution of his powers under section 12 A ; (d) refuse to give to an Inspector any information which may reasonably be required of such person; (e) fail to produce to, or conceal or attempt to conceal from, an Inspector, any property, book or other document including electronic records in relation to which the Inspector has reasonable grounds for suspecting that an offence has been or is being committed under this Act; or (f) furnish as true to an Inspector, information which he knows or has reason to believe to be false. (2) Any person who contravenes subsection (1) shall be guilty of an offence.
Power to examine persons
s 12C
(1) An Inspector making any examination or inquiry under section 12A may examine orally any person whom he believes to be acquainted with the facts and circumstances of the case and for such purpose summon any such person to attend at the time and place specified in such summons. (2) The person examined under subsection (1) shall be legally bound to answer all questions relating to such case put to him by the examining Inspector, but such person may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture. (3) A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to question. (4) An Inspector examine a person under subsection (1) shall first inform that person of subsections (2) and (3). (5) A statement made by any person under this section shall, whenever possible, be taken down in writing and signed by the person making it or affixed with his thumb-print, after it has been read to him in the language in which he made it and after he has been given an opportunity to make any corrections he may wish.
Determination of contributions in certain cases
s 13
(1) An Inspector may assess any contributions which are due from any principal or immediate employer based on any information available, if the employer— (a) fails to keep or maintain any statement, particulars, register book or any record pertaining to each employee as required to be kept or maintained by him under this Act; or (b) fails or refuses to submit any statement, particulars, register book or record pertaining to each employee as required under this Act. (2) The assessment made under subsection (1) shall be sufficient proof of the Organization’s claim for the recovery of any contributions under section 84 or for the recovery of the amount determined by such assessment as a debt due to the Organization under section 14. (3) Any assessment made under this section shall be served either personally or by registered post.
Power of Director General to ask for information and application for search warrant
s 13A
(1) For the purpose of obtaining full information for ascertaining whether any person is liable to pay contributions under this Act, the Director General or any Inspector appointed by the Director General for the purpose may by notice in writing require any person— (a) to furnish to the Director General or such Inspector within the time specified in the notice any information or particulars as specified in the notice; or (b) to attend personally before the Director General or such Inspector and to produce for examination all books, records and other documents including electronic records which the Director General or such Inspector deems necessary; or (c) to furnish the information or particulars in accordance with paragraph (a) and also to attend in accordance with paragraph (b). (2) Any person who fails to comply with subsection (1) shall be guilty of an offence. (3) Whenever it appears to any Magistrate, upon written information on oath, and after any enquiry he may think necessary, that there are reasonable grounds for suspecting that there are on any particular premises any book, account, record (including electronic record) or other document, the production of which has been required pursuant to subsection (1) and which has not been produced in compliance with that requirement, such Magistrate may issue a warrant authorizing the Director General or any person named therein with or without assistance— (a) to search the premises and to break open and search any cupboard, drawer, chest, trunk, box, package or other receptacle, whether a fixture or not, in the premises; and (b) to take possession of, or secure against interference, any book, account, record (including electronic record) or other document that appears to be a book, account, record or other document the production of which was so required.
Recovery of contributions
s 14
Any contribution or interest payable under this Act may be recovered as a debt due to the Organization.
Interest on contribution in arrears
s 14A
Where the amount of the monthly contributions or part of any monthly contributions which are payable by any employer under section 6 is not paid within such period as may be prescribed by the regulations, the employer shall be liable to pay interest to be credited to the Organization on such amount at such rate as may be prescribed by the regulations in respect of any period during which such amount remains unpaid.
Back to Employees’ Social Security Act 1969 — full text
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 1 January 2006 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
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