LINDUNG 24 Jam (SKBBK): The Employer Payroll Compliance Guide for 2026
Published: 20 July 2026
From 1 June 2026, every Malaysian employer carries a new payroll duty under PERKESO. The LINDUNG 24 Jam scheme, formally the Skim Kemalangan Bukan Bencana Kerja (SKBBK), adds a fresh employee deduction to your monthly SOCSO processing, and the responsibility for getting it right sits squarely with you.
This LINDUNG 24 Jam employer guide explains the SKBBK contribution rate, the payslip changes, the ASSIST 2.0 submission format, and the compliance deadlines you cannot miss. Employers do not pay for SKBBK, but they must deduct, remit, and report it correctly, so this is a payroll and compliance task rather than a cost increase.
Important July 2026 update: following a Cabinet decision on 10 July 2026, SKBBK is no longer mandatory for local employees. From 14 July 2026, local staff can opt out by filing a liability release declaration, while foreign employees remain mandatory contributors. This changes how you run payroll from July onwards, and the details are set out in the opt-out section below.
What LINDUNG 24 Jam means for employers
LINDUNG 24 Jam is a new protection scheme under the Employees' Social Security Act 1969 (Act 4). It gives covered employees 24-hour protection for accidents that happen outside work, anywhere within Malaysia, including rest days and public holidays. More than 9 million formal sector contributors are now enrolled.
For employers, the change is operational, not financial. The SKBBK contribution is fully borne by the employee, and your existing SOCSO rate stays the same. Your job is to deduct the correct amount, remit it on time, and update your payroll system and payslips to show it.
The existing Employment Injury Scheme under Act 4 still covers work-related and commuting accidents. SKBBK supplements that coverage, it does not replace it, so both lines run side by side from June 2026 onwards.
SKBBK contribution rate and the RM6,000 ceiling
The SKBBK contribution is calculated on monthly wages, subject to a salary ceiling of RM6,000. Phase 1 applies a rate of roughly 0.75%, with a maximum deduction of RM44.65 per month for wages at or above the ceiling. Exact amounts follow the official SOCSO contribution table by salary band, so use that table for payroll, not a flat percentage.
The rate rises in stages over the coming years. Plan your payroll calendar around these phases now, so the increases do not surprise your team later.
| Phase | Employee rate | Period | Max per month (RM6,000 ceiling) |
|---|---|---|---|
| Phase 1 | 0.75% | Year 1 to 2, from June 2026 | RM44.65 |
| Phase 2 | 1.00% | Year 3 to 5, from 2028 | About RM59.50 |
| Phase 3 | 1.25% | Year 6 onwards, from 2031 | About RM74.40 |
The employer contribution rate is unchanged. You continue to pay 1.75% in total, made up of the Employment Injury Scheme and the Invalidity Scheme, and you add no employer share for SKBBK.
| Scheme | Employer share | Employee share |
|---|---|---|
| Employment Injury Scheme (EIS) (Act 4) | 1.25% | None |
| Invalidity Scheme (Act 4) | 0.50% | 0.50% |
| KBBK (LINDUNG 24 Jam) | RM0 | 0.75% |
| Total | 1.75% | (+0.75% SKBBK) |
Who you must deduct for
SKBBK applies broadly across your Act 4 workforce. If a worker contributes to PERKESO under Act 4, you almost certainly need to deduct SKBBK for them.
Covered employees include:
- Local employees registered under Act 4, with no upper age limit while employed
- Foreign employees registered under Act 4
- Contract and part-time workers who contribute to PERKESO
- Employees aged 60 and above who are still in active employment
Not covered, and therefore not deducted, are:
- Self-employed individuals, who register separately under Act 789 (LINDUNG KENDIRI)
- Workers not registered with PERKESO under Act 4
- Foreign workers who misuse immigration passes or breach entry conditions
- Domestic workers, who fall under separate PERKESO provisions
One rule needs early attention. An employee with more than one employer contributes SKBBK through a single principal employer only, and that designation must be made within 30 days from 1 June 2026 through the PERKESO portal. Confirm with affected staff so you do not double-deduct.
The opt-out option for local employees
The rules changed part way through the rollout. On 10 July 2026 the Cabinet decided that SKBBK is no longer mandatory for local employees, and PERKESO opened an online opt-out from 14 July 2026. This does not remove your payroll duty, it adds one, because you now have to track who opts out and adjust their deductions.
The points that matter for payroll are these:
- Deduction continues by default. Every eligible local employee is still deducted at 0.75% unless they file a valid opt-out, so silence means they stay in.
- Foreign employees cannot opt out. SKBBK stays mandatory for foreign workers registered under Act 4, so keep deducting for them without exception.
- The opt-out is a signed declaration. A local employee who wants out completes the Perakuan Pelepasan Liabiliti, the liability release declaration, online through the Portal Lindung Faedah or on the manual form, and informs HR.
- The window is 14 July to 31 August 2026. An employee who files nothing by 31 August 2026 is automatically kept in the scheme.
- Opt-out stops future deductions, not past ones. Stop the 0.75% from the month the opt-out takes effect, generally July onwards, while June 2026 contributions were mandatory and are not refundable.
- Keep the declaration on file. The signed declaration releases both PERKESO and the employer from liability for off-work accidents, so retain it as an audit record. It protects you, not only the employee.
A note on tone. PERKESO is encouraging employees to stay, and an employee who opts out gives up all SKBBK cover for accidents outside work. Present the choice neutrally, give staff the facts, and let them decide, rather than pushing anyone either way.
You can share our employee guide to staying in or opting out of LINDUNG 24 Jam so staff have the benefits, deadlines and decision points in one place.
Payroll system changes you must make
SKBBK cannot be calculated inside your existing SOCSO table. It is a separate element, so your payroll software must handle it as a distinct line with its own rate and the RM6,000 ceiling. There is no workaround, and a manual patch invites errors.
Your payslip template also needs an update. SKBBK must appear as its own line item, clearly separate from SOCSO, EPF, EIS (Employment Insurance System) and PCB. The illustration below shows the new deduction order on a RM3,000 salary.
| Payslip line (illustration, RM3,000 gross) | Amount |
|---|---|
| Gross salary | RM3,000.00 |
| EPF (employee 11%) | RM330.00 |
| SOCSO, existing Act 4 | RM16.50 |
| SKBBK, LINDUNG 24 Jam (new) | RM22.50 |
| EIS | RM4.80 |
| Net salary before PCB | RM2,626.20 |
This is an illustration only. Actual amounts depend on the official PERKESO contribution schedule by salary band, so always reconcile against that table before you run your payroll.
Submission via ASSIST 2.0 and the combined file
From June 2026, SKBBK is remitted together with your other SOCSO contributions through PERKESO ASSIST 2.0. The contribution is due by the 15th of each following month, the same rhythm you already follow for SOCSO.
PERKESO has also introduced a combined text file that carries SOCSO, EIS and SKBBK in one submission. The old single-format SOCSO text file is accepted only until 30 September 2026, and the new combined format becomes mandatory from 1 October 2026. Test the new file with your payroll vendor early, so the switch does not stall a monthly run.
Key compliance dates
A single timeline keeps your payroll calendar honest. Map these dates against your monthly close, and set reminders for the 2028 rate change while it is still on your radar.
| Date | Milestone for employers |
|---|---|
| 22 August 2025 | LINDUNG rebrand launched; SKBBK announced under Act 4 |
| 5 March 2026 | Employees' Social Security (Amendment) Act 2026 gazetted |
| 1 June 2026 | LINDUNG 24 Jam takes effect; auto-enrolment; deduct 0.75% from June wages |
| 10 July 2026 | Cabinet makes SKBBK voluntary for local employees |
| 14 July 2026 | Online opt-out opens; local employees may file the liability release declaration |
| 15 July 2026 | First SKBBK remittance, for June 2026, due via ASSIST 2.0 |
| 31 August 2026 | Opt-out window closes; local non-responders stay enrolled |
| 1 October 2026 | Combined SOCSO, EIS and SKBBK file format becomes mandatory |
| 30 November 2026 | Grace period ends; penalties enforceable from 1 December 2026 |
| 2028 | Phase 2 rate rises to 1.00% |
Penalties and the grace period
PERKESO has set a six-month grace period from 1 June 2026. During this window, penalties tied specifically to SKBBK non-compliance are held back, with the grace period ending on 30 November 2026. Every other PERKESO obligation remains fully enforceable in the meantime.
The penalties themselves are serious. Under the Employees' Social Security Act 1969, an employer who fails to deduct and remit correctly can face a fine of up to RM10,000, imprisonment of up to two years, or both. Treat the grace period as setup time, not as a reason to wait.
Communicating the deduction to employees
Your staff will see a lower net salary from June, and the questions land on HR first. A short, clear note before the June payslip prevents most of them. Explain that SKBBK is a new PERKESO deduction, that it is fully employee-borne, and that it buys 24-hour accident protection outside work.
Since July 2026 you also need to tell local staff about the opt-out choice, including the 31 August deadline and the fact that opting out ends their cover for off-work accidents. Keep that message factual and neutral, and tell foreign staff plainly that the scheme stays mandatory for them.
It helps to frame the value. In return for the deduction, employees gain protection across eight benefit categories, from medical treatment to support for dependants.
| Benefit category | What it provides |
|---|---|
| Medical benefits | Treatment at PERKESO panel clinics or government hospitals |
| Temporary disablement | Income replacement during recovery |
| Permanent disablement | Lump sum or periodic payment for lasting injury |
| Dependants' benefits | Financial support for the family if an employee dies |
| Constant attendance allowance | Support where full-time care is needed |
| Funeral benefits | Assistance with funeral-related costs |
| Physical and vocational rehab | Return to Work programme and recovery services |
| Education benefits | Support for dependants of deceased or disabled contributors |
It is also worth telling employees what SKBBK does not cover. Accidents outside Malaysia, work-related accidents already under the Employment Injury Scheme, ordinary illnesses such as fever or diabetes, and incidents before 1 June 2026 all fall outside the scheme.
Employer action checklist
Use this checklist to move from awareness to a compliant payroll. Each item is time-boxed, so you can assign owners and due dates straight away.
| Action | Deadline |
|---|---|
| Update payroll system to add SKBBK at 0.75% with the RM6,000 ceiling | Immediate |
| Update payslip template to show SKBBK as a distinct line | Before June payslip |
| Communicate the opt-out option and the 31 August deadline to local staff | By mid-August 2026 |
| Collect and retain signed liability release declarations from opt-outs | To 31 August 2026 |
| Stop deductions for confirmed opt-outs; keep deducting for foreign staff | From effective month |
| Transition to the combined SOCSO, EIS and SKBBK file format | By 1 October 2026 |
| Register new hires through existing PERKESO procedures | On joining |
| Continue monthly deduction and remittance by the 15th | Monthly |
| Set a 2028 reminder to update the rate to 1.00% | 2028 |
Frequently asked questions
Do employers pay for SKBBK?
No. SKBBK is fully employee-borne. Your role is to deduct it from wages and remit it to PERKESO, with no new employer share.
When does the first SKBBK deduction apply?
From June 2026 wages. The first remittance, covering June, is due through ASSIST 2.0 by 15 July 2026.
What is the SKBBK contribution rate?
About 0.75% in Phase 1, following the official SOCSO contribution table by salary band, capped at RM44.65 per month at the RM6,000 ceiling.
Do we need to register employees for SKBBK?
No. Existing SOCSO contributors are enrolled automatically. New hires follow your existing ASSIST 2.0 registration steps.
Does SKBBK replace the Employment Injury Scheme?
No. SKBBK supplements existing coverage. Work-related and commuting accidents remain under the Employment Injury Scheme.
What happens if we do not comply?
Penalties under the Employees' Social Security Act 1969 reach up to RM10,000, up to two years imprisonment, or both. The SKBBK grace period runs only until 30 November 2026.
Can local employees opt out of SKBBK?
Yes. Since 14 July 2026, a local employee can opt out by filing the liability release declaration (Perakuan Pelepasan Liabiliti) online through the Portal Lindung Faedah or on the manual form, and informing HR. The window runs to 31 August 2026, after which non-responders stay enrolled. Foreign employees cannot opt out.
Do we stop deducting once an employee opts out?
Stop the 0.75% from the month the opt-out takes effect, usually July onwards for declarations filed now. June 2026 contributions were mandatory and are not refundable, and you keep deducting for anyone who does not opt out and for all foreign employees.
What does the signed declaration do for us as the employer?
It releases both PERKESO and the employer from liability for that employee's off-work accidents, so retain it as an audit record.
Make your payroll compliant with YYC
LINDUNG 24 Jam is a small deduction with a large compliance footprint, touching your payroll system, your payslips, your submission file, and your employee communications. Getting all four right, every month, is exactly the kind of work a payroll partner removes from your desk.
Our payroll outsourcing team at YYC has already updated contribution schedules, payslip templates, and ASSIST 2.0 remittance files for SKBBK, so your June payroll can be compliant from day one. We handle the monthly EPF, SOCSO, EIS, SKBBK and PCB contributions, the ASSIST 2.0 submission and reconciliation, and the employee communication that keeps queries off your HR team. Contact YYC to get your payroll ready.
For the official rules, refer to the PERKESO LINDUNG 24 Jam (SKBBK) page, the Employees' Social Security Act 1969 (Act 4), and the PERKESO media statement of 10 July 2026 on the opt-out option.
