Mandatory SKSPS contributions for licensed hawkers, traders from Jan 1, 2025 - SOCSO

KUALA LUMPUR: The move to make the Self-Employed Social Security Scheme (SKSPS) mandatory for licensed hawkers and traders from Jan 1, 2025 aims to provide financial support in the event of a work disaster, according to the Social Security Organisation (SOCSO).

SOCSO said based on records for the period Jan 1 to Aug 31, 2024, a total of 53,901 hawkers contributed to the SKSPS, with 189 claim cases received and processed involving the payment of the entire sector’s benefits amounting to RM681,174.90.

According to SOCSO, the mandatory step will be implemented via the Self-Employed Social Security Regulations (Contribution Rates For Hawkers or Traders) 2024 which was gazetted on Aug 30, 2024 through P.U. (A) 229 and effective on Sept 1, 2024.

“SKSPS, enforced since June 2017, is capable of being a financial guarantee and continuation of life by providing social security protection in the long term,” said a SOCSO statement today.

“All hawkers and traders, including kiosks that carry out self-employment activities, are required to contribute to SKSPS, with a transition period of four month.”

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According to the statement, individuals who have a licence or approval for activities related to hawking or doing business either on the roadside or in markets issued by the authorities under the Local Government Act 1976 (Act 171), Local Government Ordinance 1961 (Sabah No. 11 1991) or Local Government Ordinance 1996 (Sarawak Chapter 20) are required to pay SOCSO SKSPS contributions.

The hawker sector is the third to be made mandatory for SKSPS contributions after the passenger transport service sector from 2017 and transport service sector and delivery of goods or food in 2022.

In the meantime, SOCSO will continue to work with all parties, especially local authorities (PBT) nationwide throughout the transition period to raise awareness among traders and hawkers, considering that they are part of the economic drivers.

Hawkers or traders can register and contribute to SKSPS through the ‘Prihatin’ application or call at SOCSO offices throughout Malaysia, or visit SOCSO’s MATRIX portal at the link www.matrix.perkeso.gov.my, or authorised SOCSO agents at https://www. perkeso.gov.my/ejen-keselamatan-sosial-pekerjaan-sendiri.html.