COMMENT | Socso planning rates hike due to poor management?

COMMENT | Human Resources Minister M Saravanan has announced that they are studying the need to raise the mandatory Social Security Organisation (Socso) contributions by RM1 or RM2, claiming that it will not burden the people.

The contribution rate had never been raised since 1971, the year the agency was established, adding that his ministry found the demand for contributions had increased from all job sectors, including from the informal sector.

From 1971 until today, total contributions have risen by over 100 percent, "but we have never raised the rate".

Wein Nube find this reason flabbergasting as this is precisely one of the reasons why it should not be raised - that is because the number of contributors is increasing annually. Even foreign workers are contributing now.

Based on the past records of Socso funds and the total monthly contributions coming into the fund, the Nube finds that Socso has not managed its funds prudently.

There is a need for a special committee of inquiry...