004e.fm Page 1 Monday, March 27, 2006 11:02 AM LAWS OF MALAYSIA REPRINT Act 4 EMPLOYEES' SOCIAL SECURITY ACT 1969 Incorporating all amendments up to 1 January 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND PERCETAKAN NASIONAL MALAYSIA BHD 2006 004e.fm Page 2 Monday, March 27, 2006 11:02 AM 2 EMPLOYEES' SOCIAL SECURITY ACT 1969 Date of Royal Assent ... ... ... ... 2 April 1969 Date of publication in the Gazette ... ... 10 April 1969 English text to be authoritative... ... ... P.U.(B)80/1969 PREVIOUS REPRINTS First Reprint ... ... ... ... ... 1992 Second Reprint ... ... ... ... 1999 PREPARED FOR PUBLICATION BY MALAYAN LAW JOURNAL SDN BHD AND PRINTED BY PERCETAKAN NASIONAL MALAYSIA BERHAD KUALA LUMPUR BRANCH 2006 004e.fm Page 3 Monday, March 27, 2006 11:02 AM Employees' Social Security 3 LAWS OF MALAYSIA Act 4 EMPLOYEES' SOCIAL SECURITY ACT 1969 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title, extent, commencement and application 2. Definitions PART II INSURABILITY AND CONTRIBUTIONS 3. Applicability 4. Registration of industries 5. All employees to be insured 6. Contributions 7. Principal employer to pay contributions in the first instance 8. Recovery of contribution from immediate employer 9. General provisions as to payment of contributions 9A. Contributions where industry or employee is not insured or registered 9B. Validation of contribution collected 10. Method of payment of contribution 11. Employers to furnish returns and maintain registers in certain cases 12. Inspectors, their functions and duties 12A. Powers of examination and search 12B. Obstruction to exercise of powers by an Inspector 12C. Power to examine persons 004e.fm Page 4 Monday, March 27, 2006 11:02 AM 4 Laws of Malaysia ACT 4 Section 13. Determination of contributions in certain cases 13A. Power of Director General to ask for information and application for search warrant 14. Recovery of contributions 14A. Interest on contribution in arrears PART III BENEFITS 15. Benefits 16. When person considered as suffering from invalidity 17. When insured person eligible for invalidity pension 17A. Qualifying conditions for survivors' pension 18. (Deleted) 19. Payment of invalidity pension 20. Invalidity pension 20A. Survivors' pension 20B. (Deleted) 21. Invalidity grant 22. Disablement benefit 23. Presumption as to accident arising in the course of employment 24. Accidents while travelling 25. Accidents happening while meeting emergency 26. Dependants' benefit 27. (Deleted) 28. Occupational diseases 29. Funeral benefit 30. Constant-attendance allowance 31. Liability of employer and his servant 32. Determination of question of invalidity or disablement 32A. Determination of occupational diseases 33. References to medical boards and appeals to appellate medical board 004e.fm Page 5 Monday, March 27, 2006 11:02 AM Employees' Social Security 5 Section 33A. Insured person dies before medical board examination 34. Review of decisions by medical board or appellate medical board 35. Review of invalidity pension 36. Review of dependants' benefit 37. Medical benefit 38. Scale of medical benefit 39. Establishment and maintenance of hospitals, etc. 40. Organization's power to co-operate with existing institutions or promote measures for health, welfare, etc., of insured persons 41. Benefit not assignable or attachable 42. (Deleted) 43. Persons not to commute cash benefits 44. Persons not entitled to receive benefits in certain cases 45. Claimant of disablement benefit or invalidity pension to observe conditions 46. Recipients of disablement benefit to observe conditions 47. (Deleted) 48. Organization's right where a principal employer fails or neglects to pay any contribution 49. Suspension of invalidity pension 50. Repayment of benefit improperly received 51. Payment of amount of benefit outstanding at the time of the death of the insured person 52. Employer not to reduce wages, etc. 53. Employer not to dismiss or punish employee during period of temporary disablement 54. Claim for benefits 55. Reporting of change in condition, etc. 56. Discretion to compute the qualifying period and the rate of monthly invalidity pension 57. Facilities for physical or vocational rehabilitation 57A. Education benefit 004e.fm Page 6 Monday, March 27, 2006 11:02 AM 6 Laws of Malaysia ACT 4 Section 57B. Organization to be responsible for the recovery and collection of repayments of educational loans 57C. Appointment of collection agents PART IV ADMINISTRATION, FINANCE AND AUDIT 58. Administration of the Social Security Scheme 59. Chief Executive Officer 59A. The Social Security Organization 59B. Establishment of the Board 59C. Minister shall appoint any person to act as Chairman 59D. Sixth Schedule to apply to Board 59E. Cessation of membership of Board 59F. Disqualification 59G. Application of the Public Authorities Protection Act 1948 59H. Public servants and public officers 59I. Board to give effect to Minister's directions 59J. Delegation of power 59K. Administrative control of officers and servants by Director General 59L. Appointment of officers and servants 59M. Setting up divisions, regional offices, etc. 59N. Power to dispose of staff questions 59O. Power to make staff rules 59P. Committees 59Q. Disciplinary Committee 59R. Discipline of officers 59S. Establishment of Disciplinary Appeal Board 59T. Power to make disciplinary rules 59U. Imposition of surcharge 59V. Establishment of Promotion Board 59W. Establishment of Promotion Appeal Board 004e.fm Page 7 Monday, March 27, 2006 11:02 AM Employees' Social Security 7 Section 60. (Deleted) 61. (Deleted) 62. (Deleted) 63. (Deleted) 64. Fees and allowances 65. (Deleted) 66. (Deleted) 67. (Deleted) 68. Social Security Fund 69. Administration of the Fund 70. Acceptance of grants, donations, etc. 71. Purposes for which the Fund may be expended 72. Expenditure on administration 72A. Withdrawal from Fund for loans 73. Administrative expenditure Government's responsibility 74. Holding of property, etc. 75. Investment of Funds 75A. Investment Panel 75B. (Deleted) 76. Raising of loans 77. Budget estimates 78. Accounts 79. Audit 80. Annual report 81. Annual report and audited accounts 82. Valuation of assets and liabilities PART V ADJUDICATION OF DISPUTE AND CLAIMS 83. Constitution of Social Security Appellate Board 004e.fm Page 8 Monday, March 27, 2006 11:02 AM 8 Laws of Malaysia ACT 4 Section 84. Matters to be decided by the Board 85. Institution of proceedings, etc. 86. Commencement of proceedings 87. Powers of Social Security Appellate Board 88. Appearance by legal practitioners, etc. 89. Benefit not admissible unless claimed in time 90. Reference to High Court 91. Appeal 92. Stay of payment pending appeal PART VI PENALTIES 93. Punishment for false information 94. Punishment for failure to pay contributions, etc. 94A. Court's order in respect of contributions due and payable to the Organization 94B. Trial for more than one offence 94C. Copy of entry to be prima facie evidence 95. Prosecution 95A. Compounding of offences PART VII MISCELLANEOUS 96. Insured person not entitled to more than one benefit 96A. Dependant not entitled to both survivors' pension and dependants' benefit for the same period 97. Exemption of industry or class of industries 98. Exemption of persons or class of persons 99. Organization to make representation 100. Exemption of industries belonging to Government or local authority 101. Exemption from one or more provisions of the Act 102. Contributions, etc., due to Organization to have priority over other debts 004e.fm Page 9 Monday, March 27, 2006 11:02 AM Employees' Social Security 9 Section 103. Exercise of powers and functions of the Organization 103A. Disposal of documents after more than three years 104. (Deleted) 105. Power of the Minister to make regulations 106. Duty of Board to review benefits 106A. Rates of benefit 107. Addition of benefits 108. Power to remove difficulties 108A. Joint and several liability of directors 109. Recovery of contribution, etc. 110. Powers of Director General 111. Organization to deal with authorized person 112. Benefit for two or more successive accidents FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE FOURTH SCHEDULE FIFTH SCHEDULE SIXTH SCHEDULE SEVENTH SCHEDULE EIGHTH SCHEDULE NINTH SCHEDULE TENTH SCHEDULE 004e.fm Page 10 Monday, March 27, 2006 11:02 AM 004e.fm Page 11 Monday, March 27, 2006 11:02 AM 11 LAWS OF MALAYSIA Act 4 EMPLOYEES' SOCIAL SECURITY ACT 1969 An Act to provide social security in certain contingencies and to make provision for certain other matters in relation to it. [See Appendix] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: PART I PRELIMINARY Short title, extent, commencement and application 1.  (1) This Act may be cited as the Employees' Social Security Act 1969. (2) This Act shall apply throughout Malaysia. (3) This Act shall come into force on such date as the Minister may, by notification in the Gazette, appoint and different dates may be appointed for different provisions of this Act and for different States or for different parts of it. Definitions 2.  In this Act unless there is anything repugnant in the subject or context-- (1) (Deleted by Act A675); (1A) "Board", except in Part V, means the Social Security Organization Board established under section 59B; (1B) "child" means a child of the deceased insured person-- 004e.fm Page 12 Monday, March 27, 2006 11:02 AM 12 Laws of Malaysia ACT 4 (a) who is a child under twenty-one years of age and includes-- (i) a posthumous child, a dependent stepchild and an illegitimate child of the insured person; and (ii) a child adopted by the insured person under any written law relating to adoption or under any custom or usage, on satisfactory proof of such adoption; and (b) who is a child of any age and is mentally retarded or physically incapacitated and is incapable of supporting himself. (2) "contribution" means the sum of money payable to the Organization by the principal employer in respect of an insured employee and includes any amount payable by or on behalf of the employee in accordance with this Act; (3) "dependant" means any of the following relatives of a deceased insured person, namely: (a) a widow or widower or a child; and (b) if there is no widow or widower or child-- (i) a daughter, if married and a minor, or if widowed and a minor; (ii) an unmarried minor brother or sister or a widowed minor sister; (iii) a widowed daughter-in-law; (iv) a minor child of a pre-deceased son; (v) a minor child of a pre-deceased daughter where no father of the child is alive; (vi) a parent; or (vii) a grandparent if no parent of the insured person is alive; and (c) (Deleted by Act A814), Provided that the Minister may give such direction as appears to him to be necessary for the removal of hardship to any other r e l a t i v e of a deceased insured person including an invalid widower; 004e.fm Page 13 Monday, March 27, 2006 11:02 AM Employees' Social Security 13 (4) "duly appointed" means appointed in accordance with this Act or with the rules or regulations made; (5) "employee" means any person who is employed for wages under a contract of service or apprenticeship with an employer, w h e t h e r the contract is expressed or implied or is oral or in writing, on or in connection with the work of an industry to which this Act applies and-- (i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the industry, whether such work is done by the employee on the premises of the industry or elsewhere; (ii) who is employed by or through an immediate employer on the premises of the industry or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the industry or which is preliminary to the work carried on in or incidental to the purpose of the industry; or (iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service, but does not include a person of the descriptions specified in the First Schedule; (6) "employment injury" means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of his employment in an industry to which this Act applies; (6A) "Fund" means the Social Security Fund established under section 68; (7) (Deleted by Act A590); (7A) (Deleted by Act A675); (8) "Government" means the Government of Malaysia; 004e.fm Page 14 Monday, March 27, 2006 11:02 AM 14 Laws of Malaysia ACT 4 (9) "immediate employer" in relation to employees employed b y or through him, means a person who has undertaken the e x e c u t i o n on the premises where the principal employer is c a r r y i n g on his trade or business, profession, vocation, occupation or calling, or under the supervision of the principal employer or his agent, of the whole or any part of any work which is ordinarily part of the work of the trade or business, profession, vocation, occupation or calling, of the principal employer or is preliminary to the work carried on in, or incidental to the purpose of, any such trade or business, profession, vocation, occupation or c a l l i n g , and includes a person by whom the services of an employee who has entered into a contract of service with him are temporarily lent or let on hire to the principal employer; (10) "industry" means any business, trade, undertaking, manufacture or calling of employers, and includes any calling, s e r v i c e , employment, handicraft or industrial occupation or avocation of employees; (10A) "Inspector" means an Inspector appointed under section 12 and includes the Director General and every Deputy Director General; (11) "insured person" means a person who is or was an employee in respect of whom contributions are, were or could be payable under this Act, notwithstanding that such industry or employee was not so registered, so long as the industry was one to which this Act applies; (12) "Minister" means the Minister charged with responsibility for human resources; (13) "minor" means a person who has not attained twenty-one years of age; (14) "month" means a month reckoned according to the Gregorian calendar; (15) The expressions "occupier" and "factory" shall have respectively the meanings assigned to them in the Factories and Machinery Act 1967 [Act 139]; (16) "Organization" means the Social Security Organization; (17) "permanent partial disablement" means such disablement o f a permanent nature, as reduces the earning capacity of an 004e.fm Page 15 Monday, March 27, 2006 11:02 AM Employees' Social Security 15 employee in every employment which he was able to undertake at the time of the accident resulting in the disablement: Provided that every injury specified in Part II of the Second S c h e d u l e shall be deemed to result in permanent partial disablement; (18) "permanent total disablement" means such disablement of a permanent nature, as disables an employee for all work which he was capable of performing at the time of the accident resulting in such disablement: Provided that permanent total disablement shall be deemed to r e s u l t from every injury specified in Part I of the Second Schedule or from any combination of injuries specified in Part II o f it where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred per cent or more; (19) "principal employer" means the owner of an industry or the person with whom an employee has entered into a contract of service or apprenticeship and includes-- (a) a manager, agent or person responsible for the payment of salary or wages to an employee; (b) the occupier of a factory; (c) the legal representative of a deceased owner or occupier; (d) any government in Malaysia, department of any such government, local authority or statutory body and, where an employee is employed with any such gover nment, department, authority or body or with any officer on behalf of any such government, department, authority or body, the officer under whom such employee is working: Provided that no such officer shall be personally liable under this Act for anything in good faith done or omitted to be done by him as an officer of such employer; (20) "regulation" means a regulation made by the Minister; (21) (Deleted by Act A450); 004e.fm Page 16 Monday, March 27, 2006 11:02 AM 16 Laws of Malaysia ACT 4 (22) "Schedule" means a Schedule to this Act; (23) "temporary disablement" means a condition resulting from an employment injury which requires medical treatment and renders an employee, as a result of such injury, temporarily incapable of doing the work which he was doing prior to or at the time of the injury; (24) "wages" means all remuneration payable in money by an employer to an employee including any payment in respect of leave, holidays, overtime, and extra work on holidays but does not include-- (a) any contribution payable by the principal employer or the immediate employer to any pension fund or provident fund, or under this Act; (b) any travelling allowance or the value of any travelling concession; (c) any sum paid to an employee to defray special expenses incurred as a result of his employment; (d) any gratuity payable on discharge or retirement; (e) annual bonus; (f) any other remuneration as may be prescribed. PART II INSURABILITY AND CONTRIBUTIONS Applicability 3.  (1) This Act shall apply to all industries having one or more employees. (2) In this section, "employees" include any employee employed by the immediate employer. Registration of industries 4.  Every industry to which this Act applies shall be registered with the Organization within such time and in such manner as may be specified in the regulations. 004e.fm Page 17 Monday, March 27, 2006 11:02 AM Employees' Social Security 17 All employees to be insured 5.  Subject to this Act, all employees in industries to which this Act applies shall be insured in the manner provided by this Act. Contributions 6.  (1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer's contribution) and cont r ibut ion payable by the employee (hereinafter referred to as the employee's contribution) and shall be paid to the Organization. (2) The contributions shall fall into the following two categories, namely: (a) the contributions of the first category, being the contributions payable by or on behalf of the employees insured against the contingencies of invalidity and employment injury; and (b) the contributions of the second category, being the contributions payable by or on behalf of employees insured only against the contingency of employment injury. (3) The contributions of the various categories shall be paid at the rates specified in the Third Schedule. (4) The contributions of the first category shall be shared by the employer and the employee in the ratio specified in Part I of the Third Schedule. (5) The contributions of the second category shall be paid wholly by the employer. (6) The Minister, in consultation with the Minister of Finance may, by notification in the Gazette, amend, add to, vary or revise the rates of contributions specified in the Third Schedule. (7) A month shall be the unit in respect of which all contributions shall be payable under this Act. (8) The contributions payable in respect of each month shall ordinarily fall due on the last day of the month, and where an 004e.fm Page 18 Monday, March 27, 2006 11:02 AM 18 Laws of Malaysia ACT 4 employee is employed by an employer for part of a month the contribution in respect of such month shall fall due on the last day of employment by such employer in that month. (9) Where two or more contributions are paid in respect of the same insured person for the same month, they shall be counted as a single monthly contribution. (10) In computing the average of assumed wage for the p u r p o s e of calculating the rate of pension or benefit payable under this Act, two or more monthly contributions paid in respect of the same insured person for the same month shall be treated as a single monthly contribution corresponding to the aggregate of t h e different assumed monthly wages to which the different contributions correspond: Provided that where the aggregate of the different assumed monthly wages to which the different contributions correspond e x c e e d the maximum assumed monthly wage, the assumed monthly wage shall be such maximum monthly wage. Principal employer to pay contributions in the first instance 7.  (1) The principal employer shall pay in respect of every employee, whether directly employed by him or through an immediate employer, both the employer's contribution and the employee's contribution. (2) Notwithstanding anything contained in any other written l a w but subject to this Act and the regulations, if any, the p r i n c i p a l employer shall, in the case of an employee directly employed by him, be entitled to recover from the employee the employee's contribution by deduction from his wages and not otherwise: Provided that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee's contribution for the period. (3) Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer's contribution from any wages payable to an employee or otherwise to recover it from him. 004e.fm Page 19 Monday, March 27, 2006 11:02 AM Employees' Social Security 19 (4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted. Recovery of contribution from immediate employer 8.  (1) A principal employer, who has paid contribution in respect of an employee employed by or through an immediate employer, shall be entitled to recover the amount of the contribution so paid (that is to say the employer's contribution as well as the employee's contribution, if any) from the immediate employer, either by deduction from any amount payable to him by the principal employer under any contract, or as a debt payable by the immediate employer. (2) In the case referred to in subsection (1), the immediate employer shall be entitled to recover the employee's contribution from the employee employed by or through him by deduction from wages and not otherwise, subject to the conditions specified in the proviso of subsection 7(2). General provisions as to payment of contributions 9.  (1) Contribution (both the employer's contribution and the employee's contribution) shall be payable by the principal employer for each month in respect of the whole or part of which wages are payable to the employee and not otherwise. (2) (Deleted by Act A675). Contributions where industry or employee is not insured or registered 9A. Contributions shall be payable in respect of employees from the month they enter into employment and such contributions are payable even though the industry to which this Act applies or the employees or both have not been insured or registered with the Organization: Provided that an employer who has paid arrears of contributions in respect of an employee will only be entitled to recover from the wages payable notwithstanding the proviso to 004e.fm Page 20 Monday, March 27, 2006 11:02 AM 20 Laws of Malaysia ACT 4 subsection 7(2) the employee's share of the contributions due within the last preceding six months prior to the date of payment. Validation of contribution collected 9B. Any contribution collected by the Organization for an employee who was not registered for purposes of insurance under this Act for any period prior to 1 July 1987 is hereby validated and declared to have been lawfully collected. Method of payment of contribution 10. Subject to this Act, the Minister may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Act and without prejudice to the generality of the foregoing power such regulations may provide for-- (a) the manner and time of payment of contributions; (b) the payment of contributions either in cash or cheque or any other mode of payment; (c) the date by which evidence of contributions having been paid is to be received by the Organization; (d) the entry in an approved manner in or upon books or forms of particulars of contributions paid and benefits distributed in case of the insured persons to whom such books or forms relate; and (e) the issue, sale, custody, production, inspection and delivery of materials, books or forms or the replacement of materials, books or forms which have been lost, destroyed or defaced. Employers to furnish returns and maintain registers in certain cases 11. (1) Every principal and immediate employer shall submit to the Organization or to such officer of the Organization as it may direct such returns in such form and containing such particulars relating to persons employed by him or to any industry in respect of which he is the principal or immediate employer as may be specified in the regulations made in this behalf. 004e.fm Page 21 Monday, March 27, 2006 11:02 AM Employees' Social Security 21 (2) Where, in respect of any industry, the Organization has reason to believe that a return should have been submitted under subsection (1) but has not been so submitted, the Organization may require any person in charge of the industry to furnish such p a r t i c u l a r s as it may consider necessary for the purpose of enabling the Organization to decide whether the industry is an industry to which this Act applies. (3) Every principal and immediate employer shall maintain such registers or records in respect of his industry as may be required by regulations made in this behalf. Inspectors, their functions and duties 12. (1) The Minister may appoint such persons as Inspectors, as he thinks fit, for the purposes of this Act. (2) Subject to subsection (3), an Inspector appointed under subsection (1) shall have all the powers, functions and duties conferred under this Act. (3) An Inspector shall be subject to the direction and control of the Director General or of such other officer or servant of the Organization as may be authorized by the Director General to act on behalf of the Director General, and of any other Inspector superior to the Inspector in rank, and shall exercise his powers, perform his functions and discharge his duties under this Act in c o m p l i a n c e with such directions, instructions, conditions, restrictions or limitations as the Director General, or an officer or servant of the Organization authorized to act on behalf of the Director General or any other Inspector superior to the Inspector in rank, may specify orally or in writing, either generally, or in any particular case or circumstances. (4) The Director General and Deputy Directors General shall have all the powers of an Inspector. Powers of examination and search 12A. Subject to any regulations made under section 105, an Inspector may at any reasonable time-- (a) make such examination and inquiry as may be necessary for ascertaining whether this Act or the regulations or 004e.fm Page 22 Monday, March 27, 2006 11:02 AM 22 Laws of Malaysia ACT 4 rules made thereunder are being or have been complied with; (b) at any reasonable time enter any premises or place occupied by any principal employer or immediate employer for the purpose of such examination and inquiry; (c) examine the principal employer or immediate employer or his agent or servant or any person found in such premises or place or any person whom the Inspector has reasonable cause to believe to be or have been an employee; (d) make copies of or take extracts from any register, books or other documents maintained in such premises or place; and (e) exercise such other powers as may be necessary for carrying this Act into effect. Obstruction to exercise of powers by an Inspector 12B. (1) No person shall-- (a) refuse any Inspector exercising his power under section 12A access to any premises or place or any part thereof; (b) assult, obstruct, hinder or delay such Inspector in effecting any entrance which he is entitled to effect; (c) fail to comply with any lawful demands of an Inspector execution of his powers under section 12A; (d) refuse to give to an Inspector any information which may reasonably be required of such person; (e) fail to produce to, or conceal or attempt to conceal from, an Inspector, any property, book or other document including electronic records in relation to which the Inspector has reasonable grounds for suspecting that an offence has been or is being committed under this Act; or (f) furnish as true to an Inspector, information which he knows or has reason to believe to be false. 004e.fm Page 23 Monday, March 27, 2006 11:02 AM Employees' Social Security 23 (2) Any person who contravenes subsection (1) shall be guilty of an offence. Power to examine persons 12C. (1) An Inspector making any examination or inquiry under section 12A may examine orally any person whom he believes to be acquainted with the facts and circumstances of the case and for such purpose summon any such person to attend at the time and place specified in such summons. (2) The person examined under subsection (1) shall be legally bound to answer all questions relating to such case put to him by the examining Inspector, but such person may refuse to answer a n y question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture. (3) A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to question. (4) An Inspector examine a person under subsection (1) shall first inform that person of subsections (2) and (3). (5) A statement made by any person under this section shall, whenever possible, be taken down in writing and signed by the person making it or affixed with his thumb-print, after it has been read to him in the language in which he made it and after he has been given an opportunity to make any corrections he may wish. Determination of contributions in certain cases 13. (1) An Inspector may assess any contributions which are due from any principal or immediate employer based on any information available, if the employer-- (a) fails to keep or maintain any statement, particulars, register book or any record pertaining to each employee as required to be kept or maintained by him under this Act; or (b) fails or refuses to submit any statement, particulars, register book or record pertaining to each employee as required under this Act. 004e.fm Page 24 Monday, March 27, 2006 11:02 AM 24 Laws of Malaysia ACT 4 (2) The assessment made under subsection (1) shall be sufficient p r o o f of the Organization's claim for the recovery of any contributions under section 84 or for the recovery of the amount determined by such assessment as a debt due to the Organization under section 14. (3) Any assessment made under this section shall be served either personally or by registered post. Power of Director General to ask for information and application for search warrant 13A. (1) For the purpose of obtaining full information  for ascert aini ng whether any person is liable to pay contributions under this Act, the Director General or any Inspector appointed by the Director General for the purpose may by notice in writing require any person-- (a) to furnish to the Director General or such Inspector within the time specified in the notice any information or particulars as specified in the notice; or (b) to attend personally before the Director General or such Inspector and to produce for examination all books, records and other documents including electronic records which the Director General or such Inspector deems necessary; or (c) to furnish the information or particulars in accordance with paragraph (a) and also to attend in accordance with paragraph (b). (2) Any person who fails to comply with subsection (1) shall be guilty of an offence. (3) Whenever it appears to any Magistrate, upon written i n f o r m a t i o n on oath, and after any enquiry he may think necessary, that there are reasonable grounds for suspecting that there are on any particular premises any book, account, record (including electronic record) or other document, the production of which has been required pursuant to subsection (1) and which has not been produced in compliance with that requirement, such Magistrate may issue a warrant authorizing the Director General or any person named therein with or without assistance-- 004e.fm Page 25 Monday, March 27, 2006 11:02 AM Employees' Social Security 25 (a) to search the premises and to break open and search any cupboard, drawer, chest, trunk, box, package or other receptacle, whether a fixture or not, in the premises; and (b) to take possession of, or secure against interference, any book, account, record (including electronic record) or other document that appears to be a book, account, record or other document the production of which was so required. Recovery of contributions 14. Any contribution or interest payable under this Act may be recovered as a debt due to the Organization. Interest on contribution in arrears 14A. Where the amount of the monthly contributions or part of any monthly contributions which are payable by any employer under section 6 is not paid within such period as may be prescribed by the regulations, the employer shall be liable to pay interest to be credited to the Organization on such amount at such rate as may be prescribed by the regulations in respect of any period during which such amount remains unpaid. PART III BENEFITS Benefits 15. Subject to this Act, the insured persons, their dependants or the persons hereinafter mentioned, as the case may be, shall be entitled to the following benefits, namely: (a) periodical payments to an insured person in case of invalidity certified by a duly appointed medical board or by an authority specified in this behalf by the regulations (hereinafter referred to as invalidity pension); (b) periodical payments to an insured person suffering from disablement as a result of an employment injury 004e.fm Page 26 Monday, March 27, 2006 11:02 AM 26 Laws of Malaysia ACT 4 sustained as an employee under this Act and certified to be eligible to such payments by an authority specified in this behalf by the regulations (hereinafter referred to as disablement benefit); (c) periodical payments to such dependants of an insured person who dies as a result of an employment injury sustained as an employee under this Act (hereinafter referred to as dependants' benefit); (d) payments for funeral benefit or expenses, as the case may be, to the person mentioned in section 29 on the death of an insured person as a result of an employment injury sustained as an employee under this Act or while he was in receipt of disablement benefit under this Act, or of an insured person suffering from invalidity while in receipt of invalidity pension under this Act, or of an insured person who has not attained 55 years of age but has completed a full or reduced qualifying period mentioned in subsections 29(3) and (4) (hereinafter referred to as funeral benefit); (e) periodical payments to an insured person who is in receipt of invalidity pension or disablement benefit if and so long as he is so severely incapacitated or disabled as to constantly require the personal attendance of another person (hereinafter referred to as constant- attendance allowance): Provided that the existence of the degree of incapacity qualifying an invalid or disabled insured person for constant-attendance allowance shall be verified by a duly appointed medical board or the appellate medical board or any other authority specified in this behalf by the regulations, in such manner as is prescribed by the regulations; (f) medical treatment for and attendance on insured persons suffering from disablement as a result of an employment injury sustained as an employee under this Act (hereinafter referred to as medical benefit); (g) periodical payments to dependants of an insured person who dies while in receipt of invalidity pension, or of an insured person who has not attained 55 years of age but has completed a full or reduced qualifying period 004e.fm Page 27 Monday, March 27, 2006 11:02 AM Employees' Social Security 27 for survivors' pension mentioned in subsections 17A(2) and (3) (hereinafter referred to as survivors' pension). When person considered as suffering from invalidity 16. (1) An insured person shall be considered as suffering from invalidity, if, by reason of a specific morbid condition of permanent nature, he is incapable of engaging in any substantially gainful activity. (2) For the purposes of subsection (1)-- (a) a morbid condition shall be deemed to be of permanent nature if it is either incurable or is not likely to be cured; (b) a person shall be deemed to be incapable of engaging in substantially gainful activity, if in consequence of the specific morbid condition of sickness or infirmity, he is no longer capable of earning, by work corresponding to his strength and physical ability which, in view of his training and former occupation, might reasonably be assigned to him at the place of his employment or at a similar place in the neighbourhood or in the same district, one-third of the customary earnings of a mentally and physically sound person with similar qualifications and training; (c) in determining whether the claimant is suffering from invalidity, account shall be taken of any permanent improvement in the state of his invalidity which results or is expected to result from such measures of physical or vocational rehabilitation as may be offered to him free of charge by the Organization. When insured person eligible for invalidity pension 17. (1) Subject to this Act, an insured person suffering from invalidity as defined in section 16 shall, unless he has completed his fifty-fifth year of age, be entitled to receive invalidity pension if he has completed a full or a reduced qualifying period. (2) A person shall be deemed to have completed full qualifying period under subsection (1) if-- 004e.fm Page 28 Monday, March 27, 2006 11:02 AM 28 Laws of Malaysia ACT 4 (i) monthly contributions have been paid in respect of him for not less than twenty-four months during the period of forty consecutive months immediately preceding the month in which he has submitted a notice of invalidity in accordance with the regulations; or (ii) monthly contributions have been paid in respect of him for not less than two-thirds of the number of complete months comprised in the period falling between the date when contributions first become payable by him under this Act and the month immediately preceding the month in which he has submitted a notice of invalidity in accordance with the regulations, provided that the total number of monthly contributions paid during the aforesaid period shall be at least twenty-four. (3) A person shall be deemed to have completed a reduced qualifying period under subsection (1) if monthly contributions have been paid in respect of him for not less than one-third of the n u m b e r of complete months comprised in the period falling between the date when contributions first become payable by him under this Act and the month immediately preceding the month in which he has submitted a notice of invalidity in accordance with t h e regulations, provided that the total number of monthly contributions paid during the aforesaid period shall be at least twenty-four. (3A) If the insured person fails to complete a qualifying period under subsection (2) or (3) and the Organization is satisfied that such failure is not due to any fault of the insured person or is due t o the ignorance of the insured person, the Organization may c o n s i d e r the qualifying period to have been completed by an insured person if a medical board, established pursuant to section 32, to which the matter is referred by the Organization determines that the insured person's invalidity has commenced earlier than the date the notice of invalidity is received by the Organization in accordance with the regulations. (3B) Where the Organization has considered the qualifying p e r i o d to have been completed by an insured person under subsection (3A), the date on which the insured person submits his notice of invalidity shall be deemed to be the date of commencement of his invalidity. 004e.fm Page 29 Monday, March 27, 2006 11:02 AM Employees' Social Security 29 (3C) Notwithstanding subsections (2) and (3), the Organization h a s the discretion to allow periods of credit to be taken into consideration for the purpose of determining the completion of the qualifying period of an insured person, and the months in the p e r i o d of credit for which contribution is payable shall be i n c l u d e d for the purpose of calculating the total number of months for the purpose of those subsections. (3D) The term "period of credit" in subsection (3C) means the p e r i o d during which the insured person receives temporary disablement benefit and the employer does not pay any wages to the insured person. (4) If after an insured person's notice of invalidity has been rejected on account of his failure to have completed one or other of the qualifying periods, a fresh notice of invalidity is received f r o m him, the date of the fresh notice of invalidity shall be treated, for the purposes of subsections (2) and (3) as the date on which he has submitted a notice of invalidity. (5) (Deleted by Act A450). Qualifying conditions for survivors' pension 17A. (1) Subject to this Act, survivors' pension shall be payable on completion of a full or reduced qualifying period. (2) The deceased insured person shall be deemed to have completed a full qualifying period under subsection (1) if-- (a) monthly contributions have been paid in respect of him for not less than twenty-four months during the period of forty consecutive months preceding the month of his death; or (b) monthly contributions have been paid in respect of him for not less than two-thirds of the number of complete months comprised in the period falling between the date when contributions first become payable by him under this Act and the date of his death, provided that the total number of monthly contributions paid during the aforesaid period shall be at least twenty-four. (3) A deceased insured person shall be deemed to have completed a reduced qualifying period under subsection (1) if monthly 004e.fm Page 30 Monday, March 27, 2006 11:02 AM 30 Laws of Malaysia ACT 4 contributions have been paid in respect of him for not less than one-third of the number of complete months comprised in the period falling between the date when contributions first become payable by him under this Act and the date of his death, provided that the total number of monthly contributions paid during the aforesaid period shall be at least twenty-four. 18. (Deleted by Act A814). Payment of invalidity pension 19. (1) Invalidity pension shall accrue from the day in which the insured person gives notice of invalidity in accordance with the regulations and shall cease on the day following the day in which invalidity ceases or the day the pensioner dies. (2) For the purpose of this section, the daily rate of invalidity pension shall be the amount of the monthly rate of invalidity pensi on paid or payable to the insured person, divided by the number of days in the month in which the pension accrues or the invalidity ceases or the pensioner dies. Invalidity pension 20. (1) Subject to section 19, the rate of pension shall be as follows: (a) for an insured person who has completed the full qualifying period under subsection 17(2), a basic monthly pension equal to fifty per cent of his average monthly wage, increased by 1 per cent of the average monthly wage for every twelve months' contributions paid in excess of the first twenty-four months, in respect of him during the period falling between the date when contributions first become payable by him under this Act and the date on which he submits a notice of invalidity in accordance with the regulations: Provided that the rate of monthly pension, as so increased, shall not in any case exceed 65 per cent of the average monthly wage; (b) for an insured person who has completed the reduced qualifying period under subsection 17(3), a basic monthly pension equal to fifty per cent of his average monthly wage. 004e.fm Page 31 Monday, March 27, 2006 11:02 AM Employees' Social Security 31 (2) (a) The term "average monthly wage", wherever it occurs in this section, refers to the average of assumed monthly wage corresponding to the last twenty-four monthly contributions in respect of the insured person which have been paid immediately before the month in which he submits a notice of invalidity in accordance with the regulations: Provided that a minimum average monthly wage shall be three hundred and forty-two ringgit and eighty-six sen subject to such amount as may be prescribed by the Minister from time to time by regulations. (b) Assumed monthly wage to which a monthly contribution corresponds shall be deemed to be as indicated in the Fourth Schedule. (c) (Deleted by Act A450). Survivors' pension 20A. (1) If an insured person who is in receipt of invalidity pension, or if an insured person who has not attained 55 years of age but has completed a full or reduced qualifying period as specified under section 17A, dies, survivors' pension at the rates specified in the Eighth Schedule shall be payable-- (a) to the widow or the widower during life, and if there are two or more widows, the widow's share of survivors' pension specified in the Eighth Schedule shall be divided equally between the widows: Provided that if a widow or widower is entitled to more than one survivors' pension, she or he shall be pa id only one pension, being the pension with the higher rate. (b) to each child until marriage or until he attains the age of twenty-one years, whichever occurs earlier: Provided that in the case of a child referred to in paragraph (b) of the definition of "child" in section 2, survivors' pension shall continue to be paid so long as he is incapable of supporting himself: 004e.fm Page 32 Monday, March 27, 2006 11:02 AM 32 Laws of Malaysia ACT 4 And provided further that the Organization may continue such pension to a child who is in receipt of education in any institution of higher learning but not beyond the first degree until he completes or ceases to receive such education or until he marries, whichever occurs earlier. (c) (Deleted by Act A675). (2) If an insured person who is in receipt of invalidity pension, or if an insured person who has not attained 55 years of age but has completed a full or reduced qualifying period as specified under section 17A, dies and does not leave a widow, or a widower who is wholly or mainly dependent on the earnings of the insured person at the time of her death, or a child, survivors' pension shall be payable to the widowed mother and other dependants as specified in paragraph (b) of the definition of "dependant" in section 2, at the rates and for the duration specified in the Eighth Schedule. (3) The survivors' pension shall accrue from the date of the death of the insured person who is in receipt of invalidity pension or the