Nabil Luqman

0f9d2dd4f71434084e2b6094de1865e23abb37bb9f28ca51feeabee679ec9be2

Social

medical

Klang Valley

workers

insurance

PERKESO

LINDUNG 24

opt in

opt out

Malaysia&rsquo;s expanded social protection system is facing a worrying development after PERKESO revealed that 52% of workers who opted out of LINDUNG 24 Jam earn below RM3,500 a month.
The figure has raised concerns because lower-income workers are among those most vulnerable to financial difficulties if they suffer an accident outside working hours, while many may not have other forms of insurance coverage.
PERKESO Group Chief Executive Officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said 8.5 million workers, or 87.6%, chose to remain in the scheme, while 12.4% opted out after the grace period ended on 31 August 2026.
What Is LINDUNG 24 Jam?
<img src="https://r2.myc.my/956b876eb0082ab3074c058b044db24ff3e83eb8338bb6f4e3b937ad29796a6f" />
Introduced on 1 June 2026, LINDUNG 24 Jam is PERKESO&rsquo;s Non-Employment Injury Scheme, designed to extend social protection to eligible workers for accidents that happen outside working hours and are not directly related to their employment.
This is separate from PERKESO&rsquo;s employment injury protection, which covers accidents arising from work.
The scheme was introduced because workers spend far more time outside their workplaces than actually carrying out their jobs. PERKESO estimates that a formal-sector worker spends around 33% of the year working, including commuting, leaving roughly 67%, or about 244 days, when an accident outside working hours would previously have fallen outside employment-related protection.
12.4% Opted Out, But Lower-Income Workers Make Up The Majority
<img src="https://r2.myc.my/88e588850f3f35d3481b69c2d85effdbf60ea62a2c36553499e2881a5e116200" />
Although the majority of employees decided to remain protected, 12.4% chose to opt out before the 31 August deadline.
What has particularly concerned PERKESO is the income profile of those who left. Workers earning below RM3,500 made up 52% of the opt-outs, while the remaining 48% earned RM3,500 or more.
Dr Mohammed Azman said this was worrying because lower-income workers are more likely to face a serious financial impact if an unexpected accident leaves them temporarily or permanently unable to work.
PERKESO has also highlighted limited insurance coverage among lower-income Malaysians. According to data cited by the organisation, only 45.5% of Malaysians had life insurance in 2024, while coverage among the B40 group was around 4%.
Klang Valley Accounts For More Than Half Of Opt-Outs
<img src="https://r2.myc.my/216b100df73b62226ec20502440c1f416b0e01caa17de3332a69fbc7a8690fd6" />
The majority of workers choosing to leave the scheme were concentrated in Malaysia&rsquo;s major urban economic centres.
Selangor, Kuala Lumpur and Putrajaya accounted for 53% of all opt-outs, followed by:
<ul>
<li>Johor &mdash; 11%</li>
<li>Penang &mdash; 9%</li>
<li>Other states &mdash; 27%</li>
</ul>
PERKESO said the concentration in these areas may partly reflect higher incomes and greater access to private insurance, although Dr Mohammed Azman stressed that private insurance should not be viewed as a replacement for social protection.
He warned that earning more and having a private insurance policy does not automatically mean a worker has comprehensive social protection.
&ldquo;Social protection is not insurance coverage,&rdquo; he stressed, pointing out that the two serve different purposes.
6,330 Claims Already Recorded In Three Months
<img src="https://r2.myc.my/d1ec1135427789cb0347ecddd3e986e4898a1140748954e3a86582de2c01de78" />
The early figures from LINDUNG 24 Jam also show that accidents outside working hours are not merely a theoretical risk.
Between 1 June and 31 August 2026, PERKESO received 6,330 claims, averaging around 69 cases every day.
The organisation paid out approximately RM9.97 million in benefits during the scheme&rsquo;s first three months. The payments covered areas including temporary and permanent disablement, medical expenses, funeral benefits, dependants&rsquo; benefits and rehabilitation equipment and implants.
Even more notably, 74% of the claims came from workers earning below RM3,500.
This means the group that makes up the largest share of opt-outs is also the same group that has made the majority of claims under the scheme so far.
Nearly 10,000 Workers Have Already Rejoined
&nbsp;<img src="https://r2.myc.my/de763aad0749987fb39b15b33d51bc2e2065c656566a6141eecd93f3c7041123" />
There is, however, a positive development.
Since the opt-out period ended, approximately 9,000 to 10,000 workers who previously chose to leave the scheme have already rejoined.
Workers who opted out can still return to LINDUNG 24 Jam through PERKESO&rsquo;s online system, and there is no deadline for them to opt back in. However, the opt-out window itself will not be reopened.
PERKESO is continuing its awareness efforts, particularly among lower-income workers, to explain the importance of remaining covered against accidents that can happen outside the workplace.
How Much Does LINDUNG 24 Jam Cost?
&nbsp;<img src="https://r2.myc.my/221a9a55f64dfbb5af8be60257e9adacd05ac0ba8958923fa7f92dcfbb223c1c" />
The scheme is funded through employee contributions, with the rate introduced in phases.
Workers contribute:
<ul>
<li>0.75% of wages for the first two years</li>
<li>1% for years three to five</li>
<li>1.25% from the sixth year onwards</li>
</ul>
PERKESO says the initial 0.75% rate is among the lowest in the region.
The organisation describes LINDUNG 24 Jam as a social safety net rather than a substitute for private insurance, with the goal of ensuring workers continue to have protection when accidents happen beyond the workplace.
Why PERKESO Wants Workers To Think Twice
For PERKESO, the concern is not simply the number of people who opted out, but who is choosing to leave and what could happen when something goes wrong.
With thousands of claims already recorded in just three months &mdash; and nearly three-quarters coming from workers earning below RM3,500 &mdash; the scheme has already demonstrated the potential need for protection outside working hours.
The fact that nearly 10,000 workers have since changed their minds and rejoined also suggests some workers may have reconsidered the risks after learning more about what LINDUNG 24 Jam provides.
For now, PERKESO&rsquo;s message is straightforward: social protection is meant to follow workers wherever accidents happen, not only protect them while they are at work.
&nbsp;
*Sources: Visual and Reference Credits to Social Media &amp; various cross-references for context.
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Opting out could leave workers more exposed than they realise. 52% of those who opted out earn below RM3,500.

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Nearly Half Of LINDUNG 24 Jam Opt-Outs Earn Below RM3,500, Raising PERKESO Concerns

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Coke Fifa

Nearly Half Of LINDUNG 24 Jam Opt-Outs Earn Below RM3,500, Raising PERKESO Concerns

Opting out could leave workers more exposed than they realise. 52% of those who opted out earn below RM3,500.

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