SHAH ALAM: Human resources minister M Saravanan says there is a plan to transform Social Security Organisation (Socso) contributions into a pension scheme so that private sector employees will have a safety net upon retirement.
He said it was worrying that those in the private sector did not have a safety net, income or savings after they turned 60 years old because most would have withdrawn their savings in the Employees Provident Fund (EPF).
“I am looking into the possibility of increasing Socso contributions for those in the private sector and converting it into a pension scheme after they turn 60,” he said during a press conference.
He added that he had asked Socso to examine whether the change could be made. Saravanan pointed out that Socso contributions had not changed since 1971 and were due for an update.
“We don’t have an option. We are fast reaching an old-age society and the biggest challenge is finding a way to help senior citizens, specifically those from the private sector.”
Saravanan also said his ministry was conducting an in-depth study before proposing it to the Cabinet.
“It may not be possible to make this change before the next election, but whoever is next, be it the same government or a new one, should make it a priority.”
On a separate note, during his speech at the Trade Union Gathering 2022, Saravanan said the Trade Unions (Amendment) Bill 2022, would be tabled for a second reading in the Dewan Rakyat in October.
“We have had 14 engagements in August and September with unions, employers’ associations and all the state governments,” he said.
Saravanan also commented on DAP chairman Lim Guan Eng accepting his challenge to step down as DAP chairman if the minister could prove himself blameless for the country’s labour crisis.
“He has agreed to my challenge. I’ll send an official letter inviting him to come to the ministry with all the details. I’ll issue the letter this week,” said Saravanan.