Malaysia
[Updated 4/16/24] Malaysia does not have a national health insurance program, and there are no statutory medical benefits. The public healthcare system charges fees at subsidized rates, with co-payment amounts reflective of what patients can afford to pay. Although healthcare services are subsidized at public hospitals and clinics, there is usually a long waiting list to receive treatment, and private sector employees often prefer to use private hospitals and clinics.
Country Insight
Most employers in Malaysia provide healthcare benefits for their employees, and these benefits are predominantly tailored to each specific employment sector. Multinational companies, financial sectors, and larger corporations are progressive in the level of benefits they offer to their employees, aiming to remain competitive in the market.
Mandatory and supplementary employee benefits in Malaysia include a social security scheme, employment insurance, and a retirement fund. Common supplementary employee benefits include medical, life, disability, and personal accident insurance.
Mandatory Benefits
There are three mandatory employee benefits in Malaysia, which include the following:
- The Social Security Organization (SOCSO) – also known as PERKESO – is a social insurance scheme that provides coverage for work-related injuries, disabilities, and deaths.
- Employment Insurance System (EIS) – a social security scheme that provides coverage for retrenched workers.
- Employees Provident Fund (EPF) – a federal statutory body established by the Malaysian government to manage the compulsory savings plan and retirement planning for private sector workers in Malaysia.
Supplementary Benefits
Malaysian employers commonly offer the following supplemental employee benefits.
- Inpatient benefit – offered as part of the benefits package, which may include dependent cover. Employee coverage can extend up to the age of 70 years, while child coverage is available until the child reaches 23 years of age, provided they are still pursuing full-time education.
- Outpatient benefit – forms basic medical insurance benefits. General practitioner and specialist benefits are typically offered under this coverage.
- Life & permanent disability insurance – provides a lump-sum payment to the employee’s beneficiary in the event of death and permanent disability. Employers may opt for a fixed sum assured or one based on multiples of the salary.
- Critical Illness insurance – provides a lump sum payment if a member is diagnosed with a covered critical illness.
- Personal accident insurance – provides a lump-sum payment to the employee’s beneficiary in the event of death and permanent disability due to accidental causes. Employers may opt for a fixed sum assured or one based on multiples of the salary.
- Dental / Optical/Maternity benefits – Provides routine and major dental, optical, and routine maternity benefits. Insurers will be able to quote for these benefits if the employee headcount exceeds 100.
Wider Benefits Provision (Perks)
There are several additional benefits in kind other than the salary package offered by employers in Malaysia, which typically include the following:
- Company cars – these benefits are often offered to the top management level.
- Training & development – This may include access to on-the-job training, workshops, or certification programs.
- Retirement – Employers may offer additional retirement benefits, such as pension plans or retirement savings.
- Wellness – health screening program
- Flexible benefits – Employees can select from a variety of benefits, most of which are tax-efficient. Almost a third of employers offer some form of flexible benefits as part of their employee benefits program.
- Employee Assistance Program (EAP) – EAPs are designed to provide employees with support for personal and work-related issues, such as mental health counseling, financial advice, and legal assistance.
- Childcare subsidies – Childcare subsidies are designed to assist working parents with young children who may need help with the expenses associated with childcare.
- Mobile phones – It’s common for staff to have mobile phones allocated to them at the company’s expense; around 97% of companies allocate a mobile phone to staff, particularly for those employees in client-facing roles.
- Flexible working arrangements – Post the COVID-19 pandemic, it is now common for organizations to have a Flexible Work Policy in place, which allows employees to have a hybrid work model that supports a blend of in-office and remote working. It offers employees the autonomy to work in a way that suits them best for maximum productivity.
UOB Kay Hian Wealth Advisors provided this information about employee benefits in Malaysia. If you need support with your benefits in the country, contact Asinta, and we will put you in touch with the experts at UOB KHWA.