SOCSO for Employees Above 60 in Malaysia 2026: Second Category Coverage, Contribution Rules, and Benefits for Older Workers

A 62-year-old security guard in Kuala Lumpur has worked for the same company for 15 years — 13 of those before turning 60, and 2 years after. When he asks his employer why his SOCSO deduction disappeared from his payslip after his 60th birthday, he is told "SOCSO stops at 60." It does not stop entirely — but it changes significantly. And the change affects both what he pays and what he is covered for.

SOCSO does not terminate at age 60, but the employee transitions from the First Category to the Second Category. The Invalidity Scheme — the part that covers non-work-related invalidity and death — ceases. The Employment Injury Scheme continues, but only the employer pays. The employee's SOCSO deduction drops to zero.

This guide explains exactly what changes when an employee reaches 60, what coverage continues, what stops, and what both employees and employers need to do.

For the full list of SOCSO benefits, see our SOCSO benefits guide .

What Changes at Age 60

On an employee's 60th birthday, SOCSO coverage shifts from the First Category to the Second Category. This is automatic — the employer is responsible for updating the contribution category in the next monthly submission.

Why the Invalidity Scheme Stops at 60

The Invalidity Scheme is designed to replace employment income when an insured person becomes permanently unable to work — from any cause — during their working years. The scheme's logic is:

1. Invalidity pension is meant to replace lost earning capacity
2. At 60, the person is at or near the conventional retirement age
3. EPF savings become fully accessible at 55 (or earlier for partial withdrawals)
4. The Invalidity Scheme's purpose is served during working years; retirement protection shifts to EPF

The cessation at 60 is not a coverage gap — it reflects the design philosophy that invalidity protection is income-replacement insurance during the earning years, not a top-up pension in retirement.

What if the employee was already receiving Invalidity Pension before 60?

If an employee was already certified as invalid and receiving Invalidity Pension before age 60, the pension does not stop at 60. It continues for the duration of the invalidity, on the same terms. The age-60 rule applies to new claims, not to pensions already in payment.

Second Category Contribution: Employer Only

Under the Second Category, only the Employment Injury Scheme applies, and only the employer contributes. The employee pays nothing.

The employer's contribution is approximately 1.25% of the insured monthly wage (capped at RM5,000). The exact rate is set by the Second Category contribution schedule published by PERKESO.

Example: Employee aged 63, salary RM3,000

• Employee SOCSO deduction: RM0.00
• Employer SOCSO contribution: approximately RM37.50 (1.25% × RM3,000)
• This covers the employee for workplace accidents, commuting accidents, and occupational diseases only.

If the same 63-year-old employee has a heart attack at home (not work-related), SOCSO pays nothing — because the Invalidity Scheme no longer applies. If the employee falls at work, SOCSO covers medical treatment and disablement benefits under the Employment Injury Scheme.

Second Category Benefits in Detail

Even though the Invalidity Scheme stops, the Employment Injury Scheme remains intact and provides meaningful protection:

Medical treatment

Unlimited medical treatment at SOCSO-registered providers for any work injury, commuting accident, or occupational disease. This is the same as the First Category — there is no reduction in coverage at 60.

Temporary disablement benefit

80% of daily wage while temporarily unable to work due to a work injury. An older worker who fractures a hip in a workplace fall receives the same TDB rate as a younger worker with the same salary.

Permanent disablement benefit

Monthly pension or lump sum for permanent disability from a work injury. A 63-year-old who loses a hand in a workplace accident receives the same permanent disablement benefit as a 35-year-old — calculated as a percentage of the insured wage, with no age-based reduction.

Dependants' benefit

If an employee over 60 dies from a work injury, their dependants (spouse, children) receive the dependants' benefit — a monthly pension. The amount and duration are the same as for First Category dependants.

Funeral benefit

RM2,000 for work-related death, the same as under the First Category.

Rehabilitation

Physical and vocational rehabilitation for work injuries, the same as for all insured employees.

What Employers Must Do When an Employee Turns 60

Update the contribution category

Starting from the month after the employee's 60th birthday, the employer must:

1. Move the employee from First Category to Second Category in the PERKESO Assist system
2. Stop deducting the employee's SOCSO share
3. Continue paying the employer's share at the Second Category rate

This is not automatic in the payroll system — the employer must manually update the category. Failing to do so over-deducts the employee and may cause the Invalidity Scheme contribution to continue unnecessarily.

Do not stop contributions entirely

SOCSO does not stop at 60. The employer contribution continues. An employer who removes a 60+ employee from the SOCSO submission entirely is non-compliant and leaves the employee without work-injury coverage.

Re-registration not required

The employee keeps the same SOCSO registration number for life. There is no re-registration process at 60 — just a category change in the monthly submission.

SOCSO for Employees Who Start a New Job After 60

Previously insured before 60

If an employee was registered with SOCSO before reaching 60, they continue to be insurable under the Second Category for any subsequent employment after 60. The employer registers them as a new employee under the existing SOCSO number, selecting the Second Category.

Never insured before 60

If a person was never registered with SOCSO before turning 60 (for example, they worked exclusively in the informal sector or as a self-employed person), they cannot register for SOCSO for the first time after 60. The Act does not permit new entrants into the SOCSO system after 60. The employer of such a person should consider private workplace injury insurance.

SOCSO and EIS After 60

EIS (Employment Insurance System) also ceases at age 60. Retrenchment and job loss benefits under EIS are designed for working-age employees. From the month after the 60th birthday:

• Employee EIS deduction: stops
• Employer EIS contribution: stops
• The employee is no longer covered by EIS

FAQ

I am still working at 65. Can I make a new SOCSO claim for a non-work illness?

No. The Invalidity Scheme does not apply after 60. If you develop cancer at 65 that is not work-related, SOCSO cannot cover it. The Employment Injury Scheme only covers work-related injuries, commuting accidents, and occupational diseases. For non-work medical expenses, you rely on personal medical insurance, EPF savings, or private funds.

If I was injured at work at age 58 and am still receiving treatment at 62, can SOCSO stop my treatment at 60?

No. If the injury occurred while you were under 60 (First Category) and treatment is ongoing, SOCSO continues to cover the treatment after 60 without interruption. The category change only affects new claims. Ongoing claims from injuries sustained before 60 continue under the original terms.

My employer continued deducting SOCSO from my salary after I turned 60. Is this correct?

No. Under the Second Category, only the employer contributes. If SOCSO was deducted from your salary after your 60th birthday, your employer has over-deducted. The employer should reimburse you for the amounts wrongly deducted and correct the classification in the next PERKESO Assist submission.

Does the SOCSO contribution table change every year?

The rates are reviewed periodically but do not change annually like tax brackets. Major rate changes are announced through amendments to the Act. For 2026, the rates remain as they were in the most recent published schedule. Check the PERKESO website for any updates.

Can I voluntarily continue SOCSO Invalidity Scheme coverage after 60 by paying my own contributions?

No. The Invalidity Scheme is not available on a voluntary continued basis after 60. The scheme's design ties the Invalidity Scheme to the working-age population. There is no mechanism for an individual to opt into the Invalidity Scheme after 60 through voluntary contributions.

SOCSO at 60 does not disappear — it narrows. The Employment Injury Scheme remains, providing full coverage for workplace accidents, commuting accidents, and occupational diseases, with the employer paying the full contribution. What stops is the Invalidity Scheme, because its purpose — replacing lost income when you can no longer work — is served by the working-age coverage period, and at 60, retirement savings (primarily EPF) take over.

For a complete picture of all deductions at any age, use the DuitTools salary calculator .