What Malaysian Employees Need to Know About SKBKK Lindung 24 Jam

If you received your July 2026 payslip and noticed a new 0.75% deduction you did not recognise, you are not alone. Thousands of Malaysian employees across manufacturing, hospitality, and F&B are asking the same question: what is SKBKK Lindung 24 Jam, and do I have to pay into it?

The short answer is that you are currently enrolled by default, but you now have the right to opt out. The longer answer requires understanding what this scheme is, what it covers, and what opting out actually means for you before you make a decision.

What Is SKBKK Lindung 24 Jam?

SKBKK stands for Skim Keselamatan Bersama Keluarga Kakitangan, and Lindung 24 Jam translates literally as 24-Hour Protection. The scheme is administered by PERKESO, the same body that manages SOCSO contributions in Malaysia, and it operates under Act 4 of Malaysia's social security legislation.

As the name suggests, Lindung 24 Jam is designed to provide employees with protection coverage that extends beyond working hours. Standard SOCSO coverage under the Employment Injury Scheme covers accidents and injuries that happen at the workplace or while travelling to and from work. Lindung 24 Jam extends that protection to cover accidents, injury, or death that occur outside of working hours, including during personal time, weekends, and public holidays.

For workers in physically demanding industries like manufacturing and construction, or those working irregular hours in hospitality and F&B, this round-the-clock coverage addresses a genuine gap in the existing protection framework. An injury that happens on a Saturday afternoon or during a personal activity would not typically be covered under standard SOCSO, but it would be covered under Lindung 24 Jam.

What Changed in July 2026?

The scheme has been through significant changes in a very short period of time, and it is important to understand where things stand right now.

Lindung 24 Jam contributions began on 1 June 2026, with the 0.75% employee contribution being deducted automatically through the payroll system. Initially the scheme was treated as mandatory for all employees. However, on 8 July 2026, the Cabinet made a significant policy decision: SKBKK Lindung 24 Jam is no longer mandatory for local Malaysian employees.

KESUMA confirmed on 9 July that participation is now voluntary for local employees, while remaining mandatory for foreign workers. On 10 July, PERKESO confirmed the mechanism: it is an opt-out system, not opt-in. This is an important distinction. You are enrolled by default and the 0.75% deduction continues unless you actively choose to leave the scheme.

The opt-out form, officially called the Liability Release Declaration or Perakuan Pelepasan Liabiliti, became available on 13 July 2026 through the PERKESO website.

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How the Opt-Out Process Works

If you are a local Malaysian employee and you decide you do not want to participate in Lindung 24 Jam, the process is as follows.

Download the Liability Release Declaration form from the PERKESO website. Complete the form and submit it to your employer's HR department. Your HR team is responsible for handling contribution payments on your behalf and will process your opt-out accordingly. The opt-out takes effect once PERKESO receives your declaration.

There are two important things to understand about timing. First, if you submit your opt-out form and PERKESO processes it before the end of the current month, you will be exempt from that month's 0.75% contribution. Second, contributions that have already been deducted and paid will not be refunded. This is because coverage was active from 1 June 2026 under Act 4, meaning you received the protection for the period those contributions covered.

If you opt out and later change your mind, you are free to rejoin the scheme at any time. However, your Lindung 24 Jam coverage will only resume once contributions restart. There is no backdated coverage for the period during which you were opted out.

What Opting Out Means for Your Coverage

This is the part that every employee needs to understand clearly before deciding. Submitting the Liability Release Declaration does exactly what its name says: it releases both PERKESO and your employer from liability under Act 4 for accidents, injury, or death that occur outside of working hours.

In practical terms, if you opt out and are then involved in an accident during your personal time, you will not be able to make a claim under Lindung 24 Jam. Your standard SOCSO coverage for workplace injuries remains intact regardless of whether you opt out of Lindung 24 Jam, but the extended 24-hour protection will no longer apply.

For employees in industries where the risk of injury outside work is a genuine consideration, this is worth thinking about carefully. For employees who already have personal accident insurance or other coverage that provides similar protection, the calculus may be different.

What This Means for Workers in Manufacturing, Hospitality and F&B

For employees in Malaysia's manufacturing sector, where physical work is the norm and the risk of injury does not disappear when the shift ends, Lindung 24 Jam offers meaningful additional protection. A factory worker who is injured during weekend recreational activities would have no SOCSO recourse under standard coverage but would be protected under Lindung 24 Jam if they remain enrolled.

For hospitality and F&B workers, who often work non-standard hours and may be more active during their off days to compensate for time spent on shift, the 24-hour coverage similarly addresses a real gap. The 0.75% contribution on a salary of RM2,000 amounts to RM15 per month, which for many workers is a reasonable cost for round-the-clock accident protection.

That said, the decision is now yours to make. The Cabinet's decision to make participation voluntary for local employees reflects a recognition that individual circumstances vary and that workers should have a choice about contributions that affect their take-home pay.

What Your Employer Must Do

For HR teams and payroll managers, the rules are clear. Continue deducting 0.75% for all local employees by default. Stop deductions only for employees whose Liability Release Declaration has been received and confirmed. Do not process refunds for contributions already deducted and paid. Retain all submitted opt-out declarations for your records. Foreign worker deductions and remittances continue unchanged regardless of the policy shift for local employees.

Employers who are using payroll software should ensure their system is configured to handle both enrolled and opted-out employees correctly from the current month forward, and that records of opt-out declarations are stored securely and accessibly for audit purposes.

ByteHR's payroll system is designed to handle exactly this kind of statutory update, allowing HR teams to update individual employee contribution status quickly and accurately without manual calculation errors. When compliance requirements change, the last thing your team needs is a payroll system that cannot keep up.

SKBKK Lindung 24 Jam is a new and still-evolving part of Malaysia's employee protection framework. The July 2026 Cabinet decision has given local employees genuine choice about participation, and understanding that choice fully is the first step toward making the right decision for your own circumstances.

If you are unsure whether to opt out, consider the level of coverage you already have through other insurance or personal accident policies, the nature of your work and lifestyle, and the cost of the contribution relative to the protection it provides. If in doubt, speaking with your HR team or a financial advisor before submitting the opt-out form is always worthwhile.

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