Lindung 24 Jam Is Now Optional: What Malaysian Employers Need to Know (July 2026)
The Cabinet reversed mandatory SKBBK deductions on 8 July — here is what changed, what stayed the same, and how to handle payroll until PERKESO confirms the details
Photo by Campaign Creators on Unsplash
Policy update: This article supersedes the mandatory-deduction guidance in our June 2026 Lindung 24 Jam employer guide. Standard SOCSO and EIS rules are unchanged.
On 8 July 2026, the Malaysian Cabinet decided that contributions to PERKESO's Lindung 24 Jam scheme — the Skim Kemalangan Bukan Bencana Kerja (SKBBK) covering non-work-related accidents — are no longer mandatory. Government spokesman Datuk Fahmi Fadzil said the 0.75% employee contribution will now be implemented on a voluntary basis, effective immediately (The Star).
For Malaysian employers, HR teams, and payroll administrators, this is a material change from the position that took effect on 1 June 2026, when more than nine million workers under the Employees' Social Security Act 1969 (Act 4) were automatically enrolled and employers were expected to deduct SKBBK from every eligible payslip.
Key Takeaways (TL;DR)
- Effective: Immediately from 8 July 2026 — Cabinet decision announced the same day.
- What changed: The 0.75% Lindung 24 Jam / SKBBK employee deduction is now voluntary, not mandatory.
- What did not change: Standard SOCSO and EIS contributions remain mandatory for eligible employees.
- Next step from government: The Human Resources Ministry will issue a further statement on implementation.
- Employer action: Pause automatic SKBBK deductions until PERKESO confirms opt-in mechanics; communicate clearly with staff.
- Context: Prime Minister Datuk Seri Anwar Ibrahim raised public feedback about the salary deduction before the Cabinet reversed the mandatory rule.
What the Cabinet Decided
Communications Minister Datuk Fahmi Fadzil, who is also the government spokesman, said the Prime Minister highlighted feedback on implementing the 0.75% contribution from employees' salaries for PERKESO's Lindung 24 Jam scheme. Following that, the Cabinet decided contributions would no longer be mandatory and would instead be voluntary.
In practical payroll terms, this means employers should not treat SKBBK as an automatic statutory deduction for every Act 4 employee — at least not until the Ministry and PERKESO spell out how voluntary enrollment works in ASSIST and on payslips.
Timeline at a glance
| Date | Position |
|---|---|
| 1 June 2026 | Lindung 24 Jam launched; automatic enrollment for Act 4 workers; 0.75% employee contribution treated as mandatory |
| 15 July 2026 | First remittance deadline for June wages (now uncertain for SKBBK — confirm with PERKESO) |
| 8 July 2026 | Cabinet: SKBBK contributions voluntary with immediate effect; HR Ministry statement to follow |
Background: What Lindung 24 Jam Was
Lindung 24 Jam expanded PERKESO protection to cover many non-work-related accidents within Malaysia, 24 hours a day — including rest days and public holidays. Human Resources Minister Datuk Seri R. Ramanan had previously described it as broader social security for formal workers under Act 4, with contributions borne entirely by employees and phased rate increases planned through 2031.
For the first phase (2026–2027), the rate was 0.75% of contributory wages, capped at a RM6,000 monthly ceiling — a maximum of about RM45 per month. Employers were responsible for deducting the amount and remitting it with regular SOCSO and EIS payments, even though they did not pay an employer share for SKBBK.
Our original guide covers rates, payslip labelling, and how SKBBK sits alongside First Category SOCSO: SOCSO 2026 Policy Update: Lindung 24 Jam (SKBBK) Employer Guide. Bahasa Melayu: kemaskini SOCSO 2026 (panduan BM).
What Employers Should Do Now
The announcement is clear on intent — voluntary, not mandatory — but payroll teams still need operational detail from PERKESO. Until that arrives, a conservative approach protects both compliance and employee trust.
- Pause automatic SKBBK deductions on payroll runs after 8 July 2026 unless an employee has explicitly opted in and you have a documented process aligned with upcoming official guidance.
- Do not assume the 15 July deadline still applies to SKBBK for June wages. Confirm whether PERKESO expects SKBBK remittance, zero filing, or revised ASSIST fields before paying.
- Reconcile June and early-July payrolls where SKBBK was already deducted. Keep records of amounts withheld and remitted in case adjustment or refund rules are published.
- Update internal payroll SOPs and brief anyone who runs monthly statutory remittance.
- Watch PERKESO ASSIST and the Human Resources Ministry for the follow-up statement Datuk Fahmi said would be issued.
Deducting from wages without a clear legal basis or employee consent creates payroll risk. When in doubt, hold SKBBK deductions until PERKESO publishes voluntary enrollment steps — standard SOCSO and EIS must still be paid on time.
What to Tell Employees
Employees who saw a new SKBBK / LINDUNG 24 JAMline on their June payslip will ask why it appeared — and why it may disappear in July. A short internal memo helps: explain the scheme's purpose (non-work accident cover), note the 8 July Cabinet decision making contributions voluntary, and say you will follow official PERKESO guidance on opt-in before deducting again.
If take-home pay increased because SKBBK stopped, that is expected under the new policy — not a payroll error. Be ready to explain the difference between mandatory SOCSO/EIS and the now- optional Lindung 24 Jam layer.
What Is Still Mandatory
This reversal is specific to Lindung 24 Jam / SKBBK. It does not remove your existing obligations under Act 4:
| Component | July 2026 status |
|---|---|
| SOCSO First / Second Category | Still mandatory — deduct and remit as before |
| EIS (SIP) | Still mandatory for eligible employees |
| EPF / KWSP | Unchanged |
| PCB / MTD | Unchanged |
| SKBBK / Lindung 24 Jam | Voluntary from 8 July 2026 — await opt-in rules |
See our Malaysian payroll statutory deductions guide for the full KWSP, SOCSO, EIS, and PCB picture.
Open Questions — Await PERKESO
The Cabinet decision answers the big question — mandatory or not — but payroll operations still need detail. Watch for official guidance on:
- How employees opt in (or out) in PERKESO ASSIST
- Whether ASSIST filing still includes an SKBBK field when contributions are zero
- Treatment of SKBBK already deducted for June 2026 wages due by 15 July
- Whether the six-month grace period for SKBBK non-compliance still applies under a voluntary model
- How voluntary enrollment interacts with automatic enrollment from 1 June
We will update this article
When the Human Resources Ministry and PERKESO publish implementation steps, we will refresh this page and our June employer guide. Bookmark this URL or check perkeso.gov.my for the primary source.
July 2026 Action Checklist
Before your next payroll run
- Confirm payroll software SKBBK settings match the voluntary policy (no silent auto-deduct).
- Send a one-paragraph update to employees about the 8 July Cabinet decision.
- Keep SOCSO and EIS remittance on the normal 15th-of-month schedule.
- Log SKBBK amounts already deducted or paid in June/July for future reconciliation.
- Monitor PERKESO for opt-in mechanics before re-enabling SKBBK on payslips.
Conclusion
The 8 July 2026 Cabinet decisionis a significant U-turn on one of the year's most discussed payroll changes. Lindung 24 Jam protection may still be valuable for employees who choose it — but employers are no longer required to deduct 0.75% from every salary without consent.
For most SMEs, the right move today is simple: stop treating SKBBK as automatic, keep standard SOCSO and EIS compliant, communicate honestly with staff, and wait for the Human Resources Ministry and PERKESO to publish the voluntary enrollment playbook.
Pair this update with our SOCSO contribution Malaysia reference, PERKESO payroll software overview, and the EPF / SOCSO / EIS calculator for the statutory stack that remains unchanged.
Payroll That Follows Malaysia's Rules
HavaHR calculates SOCSO, EIS, EPF, and PCB on every run — and we track PERKESO policy changes so your team is not guessing from news headlines alone.
Related Resources
Frequently Asked Questions
Is Lindung 24 Jam still mandatory in July 2026?
No. On 8 July 2026, the Cabinet decided that contributions to PERKESO’s Employment Injury Scheme for Non-Work Accident (Lindung 24 Jam / SKBBK) are no longer mandatory and will be implemented on a voluntary basis, effective immediately. Government spokesman Datuk Fahmi Fadzil confirmed the 0.75% employee contribution is now voluntary.
When did Lindung 24 Jam become optional?
The Cabinet decision was announced on Wednesday, 8 July 2026, with immediate effect. The Human Resources Ministry said it would issue a further statement on implementation details.
Do employers still need to deduct 0.75% for Lindung 24 Jam?
Until PERKESO and the Human Resources Ministry publish revised filing and deduction guidance, treat automatic payroll deductions as paused. Do not deduct SKBBK from employees who have not clearly opted in. Communicate the change to staff and reconcile any amounts already deducted in June or early July once official refund or adjustment rules are confirmed.
What happens to employees already covered from 1 June 2026?
More than nine million Act 4 contributors were automatically enrolled when the scheme launched on 1 June 2026. The July 2026 Cabinet decision makes future contributions voluntary — it does not automatically cancel benefits already in force for periods when contributions were paid. Await PERKESO guidance on continuing, opting out, or adjusting coverage.
Who pays for Lindung 24 Jam if an employee opts in?
As before, the contribution remains employee-funded only (0.75% of contributory wages in the 2026–2027 phase, subject to the RM6,000 monthly ceiling). Employers who facilitate voluntary opt-in would still deduct from wages and remit to PERKESO — but only when the employee has chosen to participate and official processes allow it.
Why was the policy reversed?
Communications Minister Datuk Fahmi Fadzil said Prime Minister Datuk Seri Anwar Ibrahim raised feedback received about implementing the 0.75% deduction from employees’ salaries. The Cabinet responded by making the scheme voluntary rather than mandatory.
Is standard SOCSO and EIS still mandatory?
Yes. This change applies specifically to the Lindung 24 Jam / SKBBK non-work accident layer added in June 2026. Existing SOCSO First or Second Category contributions and EIS (SIP) remain mandatory for eligible employees under the Employees’ Social Security Act 1969 and Employment Insurance System Act 2017.
What should employers do right now?
Pause automatic SKBBK deductions unless you have written employee consent and clear PERKESO guidance. Tell payroll and HR teams about the 8 July decision. Watch for the Human Resources Ministry and PERKESO ASSIST updates. Document any June/July SKBBK amounts already remitted for potential adjustment. Review your June 2026 employer guide and update internal FAQs once official opt-in mechanics are published.