LINDUNG 24 Jam Is Now Voluntary: What Malaysia’s July 2026 U-Turn Means for Your Payslip

Just over a month after Skim LINDUNG 24 Jam began as a mandatory employee deduction on 1 June 2026, the Malaysian government has reversed course. Following public feedback, the Cabinet decided that the 0.75% employee contribution for 24-hour non-work accident cover will now be optional—not compulsory. For millions of workers who saw a new line on their June payslip, this is a significant policy shift that affects take-home pay, employer payroll processes, and how you think about social security protection.

What Happened on 8 July 2026?

Communications Minister and government spokesman Datuk Fahmi Fadzil issued a statement on Wednesday, 8 July 2026, confirming a Cabinet decision on PERKESO's LINDUNG 24 Jam scheme:

"The Prime Minister (Datuk Seri Anwar Ibrahim) raised the feedback received regarding the implementation of the 0.75% contribution from employees' salaries for PERKESO's Lindung 24 Jam scheme. Following this, the Cabinet has decided that the contribution will no longer be mandatory but instead be implemented on a voluntary basis, effective immediately. The Human Resources Ministry will issue a further statement on this decision."

In short: the 0.75% employee salary deduction for Skim Kemalangan Bukan Bencana Kerja (SKBBK)—marketed as LINDUNG 24 Jam—is no longer compulsory. Workers can choose whether to contribute. The decision took effect immediately, though practical payroll changes may take until the next pay cycle or until official HR Ministry guidance is published.

Source: The Star — PERKESO's Lindung 24 Jam scheme now optional, says Fahmi (8 July 2026)

Background: From Mandatory to Voluntary

To understand the significance of this U-turn, it helps to recap what LINDUNG 24 Jam was designed to do:

• Introduced via the Employees' Social Security (Amendment) Act 2026, gazetted 5 March 2026
• Effective date: Contributions began from 1 June 2026
• Coverage: 24-hour protection for non-work accidents—road accidents during personal travel, injuries at home on rest days, leisure activities, and similar incidents while employed in Malaysia
• Scope: More than nine million contributors under the Employees' Social Security Act 1969 (Act 4) were automatically enrolled
• Cost: 100% employee-borne—employers deducted 0.75% from wages and remitted to PERKESO
• Wage ceiling: Contributions calculated on wages up to RM6,000/month

Human Resources Minister Datuk Seri R. Ramanan had previously described the scheme as broader social security protection, including during public holidays and days off. The June rollout added a visible new deduction on payslips—often RM13–RM45/month depending on salary—prompting feedback that ultimately reached the Prime Minister's office and led to this Cabinet reversal.

For the full pre-July mandatory scheme details, see our earlier guide: SOCSO 2026 Update: LINDUNG 24 Jam & Your Salary Deductions.

What It Means for Employees

You are no longer automatically enrolled

Under the June 2026 rules, enrolment was automatic for all Act 4 employees—no opt-in form required. Under the July 2026 decision, that automatic deduction should stop unless you actively choose to contribute. Expect your employer or HR department to communicate how to opt in (or confirm you are opted out) once Ministry guidance is issued.

Your take-home pay may increase

If your employer was deducting SKBBK in June and early July payroll, removing the mandatory contribution restores that amount to your net pay. At the RM6,000 wage ceiling, that is up to RM45/month back in your pocket during the 0.75% phase (2026–2027).

Protection only applies if you contribute

LINDUNG 24 Jam benefits—medical care, temporary and permanent disablement benefits, dependants' benefits, funeral benefits, rehabilitation, and more—are tied to active SKBBK contributions. If you opt out, you will not be covered for non-work accidents under this scheme. Workplace injuries remain covered under the existing Employment Injury Scheme (mandatory SOCSO).

What It Means for Employers

Employers face a practical shift from "deduct by default" to "deduct only on employee election":

• Stop automatic SKBBK deductions unless and until an employee opts in
• Update payroll systems to treat SKBBK as an optional contribution, not a mandatory statutory line
• Communicate clearly with staff about the voluntary nature of the scheme and how to enrol
• Adjust PERKESO remittance files—SKBBK amounts should only be included for employees who have opted in
• Watch for HR Ministry guidance on the opt-in/opt-out process, record-keeping, and any transition rules for employees already deducted in June–July

Payslip Impact: Before vs After the U-Turn

Here is how a typical Malaysian payslip statutory stack compares:

Nothing in the 8 July announcement changes existing SOCSO (Employment Injury / Invalidity), EPF, EIS, or PCB obligations. Only the SKBBK line moves from compulsory to elective.

Should You Opt In to LINDUNG 24 Jam?

This is now a personal choice. Consider the trade-off:

There is no universally "right" answer. A worker earning RM4,000 who opts in pays RM30/month for broader accident protection; opting out keeps that RM30 in net pay. Run both scenarios in our salary calculator to see the exact difference for your income.

Existing SOCSO Coverage Is Unchanged

It is important not to confuse LINDUNG 24 Jam with core SOCSO:

• Employment Injury Scheme — still mandatory; covers work-related accidents and occupational diseases
• Invalidity Scheme — still mandatory for eligible employees under 60 (First Category)
• Second Category (age 60+) — employer-only Employment Injury contributions continue as before
• RM6,000 wage ceiling — unchanged for existing SOCSO contribution calculations

LINDUNG 24 Jam was always an additional layer on top of workplace SOCSO—not a replacement. Making it voluntary does not reduce your mandatory work-injury protection. For a full overview, see our Complete Guide to SOCSO in Malaysia.

Frequently Asked Questions

When did LINDUNG 24 Jam become voluntary?

The Cabinet decision was announced on 8 July 2026 and takes effect immediately, per government spokesman Datuk Fahmi Fadzil. Payroll systems may need time to catch up; check with your employer for your next payslip.

Will I get a refund for June SKBBK deductions?

The 8 July statement did not specify refund or adjustment procedures for amounts already deducted. The Human Resources Ministry's upcoming statement should clarify whether employers must refund June/July SKBBK deductions for employees who do not wish to contribute, or whether those contributions remain valid for the coverage period. Check back for updates or ask your HR department.

How much is the voluntary contribution if I opt in?

The rate remains 0.75% of monthly wages during the 2026–2027 phase, subject to the RM6,000 wage ceiling. Maximum deduction: RM45/month. Phased increases to 1.00% (2028–2030) and 1.25% (2031+) were planned under the original amendment—confirm with PERKESO whether these still apply to voluntary contributors.

Does my employer pay anything for LINDUNG 24 Jam?

No. SKBBK has always been 100% employee-borne. The employer's role is to deduct (if you opt in) and remit to PERKESO. Existing employer SOCSO contributions are separate and unchanged.

Are foreign workers affected?

Foreign employees under Act 4 were among the nine million automatically covered when the scheme was mandatory. The voluntary change should apply to them as well, but confirm with your employer and PERKESO once official guidance is published.

Is LINDUNG 24 Jam the same as EIS?

No. EIS (Employment Insurance System) covers job loss from retrenchment or company closure. LINDUNG 24 Jam (SKBBK) covers non-work accidents. EIS remains mandatory for eligible employees aged 18–60; SKBBK is now optional. See our EIS guide for details.

How do I opt in or opt out?

The Cabinet decision is effective immediately, but the practical opt-in/opt-out mechanism has not yet been detailed in Fahmi's statement. Expect your employer to provide a form or HRIS option once the Human Resources Ministry and PERKESO publish implementation guidelines. If you were deducted in June, ask HR whether the deduction will stop from your next payroll.

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Conclusion

Malaysia's LINDUNG 24 Jam scheme has gone from mandatory to voluntary in just over a month—a rare and swift policy reversal driven by public feedback. For employees, the immediate effect is choice: keep the 0.75% deduction for 24-hour accident protection, or opt out and take home more each month. For employers, payroll must shift from automatic SKBBK deductions to an opt-in model, pending further guidance from the Human Resources Ministry.

Core SOCSO, EPF, EIS, and PCB obligations are unaffected. Use our free salary calculator to model your take-home pay with or without SKBBK, and watch this space—we will update as official PERKESO and Ministry circulars are published.