Effective Date: 13 July 2026
Published Date: 17 July 2026
The implementation of LINDUNG 24 Jam (Skim Kemalangan Bukan Bencana Kerja) has undergone a significant policy reversal within weeks of its implementation. Initially introduced as a mandatory social security scheme for Malaysian employees effective 1 June 2026, the Government has now made participation voluntary following Cabinet approval and public feedback.
Effective 13 July 2026, eligible Malaysian employees may choose to opt out of the scheme via PERKESO's online portal. Foreign workers, however, remain subject to mandatory contributions. This latest development requires employers to reassess payroll administration, employee communications and internal procedures while ensuring employees understand the long-term consequences of their decision.
Protection generally extends to accidental injuries occurring outside work, including:
Since implementation, PERKESO reported approximately 27 approved claims per day, with almost RM2 million paid during the scheme's first month—more than double the average number of non-work injury claims previously rejected each day under the old framework.
LINDUNG 24 Jam does not replace existing employment injury protection. It does not cover:
These incidents continue to be governed by the existing Employment Injury Scheme.
The implementation timeline is summarised below:
Key changes include:
- Participation is now voluntary for Malaysian employees.
- Foreign workers remain compulsory contributors.
- Employees must personally submit the online declaration.
- Employers cannot opt out on behalf of employees.
- Employers must cease payroll deductions once notified by the employee.
Employees who choose to opt out must complete an online Liability Waiver Declaration through the PERKESO Lindung Faedah Portal. The declaration has important legal implications:
Importantly, the liability waiver does not exempt employers from their obligations under occupational safety, employment legislation or common law. Its effect is limited to excluding the employee from LINDUNG 24 Jam protection.
Although the opt-out decision rests solely with employees, employers should establish clear governance and administrative procedures. Recommended actions include:
The introduction of an opt-out mechanism shifts greater responsibility to both employers and employees. Employers must remain neutral while ensuring employees are adequately informed of the financial and legal implications of relinquishing 24-hour social security protection. Strong documentation, effective communication and robust payroll controls will be critical in mitigating future disputes and ensuring continued compliance with PERKESO requirements.
