To : HOTEL MEMBERS
1. Please be informed that at the meeting held on 16.5.2011 between representatives of MEF, MAH, AHE and MAHO with the Chief Executive of SOCSO on the above matter, an agreement has been reached that with effect from July 2011 hotel employers shall contribute on service charge to SOCSO. The contributions of service charge to SOCSO fall under the following two categories.
Payment made on behalf of employees insured against the contingencies of invalidity and employment injury. The contribution shall be shared by the employee in the ratio specified in Part I of the Third Schedule. The ratio of payment is 1.75% by the employers and 0.5% by the employee.
Contribution payable on behalf of the employee insured against the contingency of employment injury only, the contribution shall be paid wholly by the employers. The SOCSO insurance against the contingency of employment injury only currently applies to employee who is still employed beyond the age of 55 years.
2. As such please be advised that with effect from July 2011 and thereafter, every hotel employer is required to include service charge as part of the contributions to SOCSO. Accordingly the first deduction for the month of July 2011 which would include service charge need to be remitted to SOCSO on or before 31 August 2011.
MEF shall keep you informed of further developments accordingly.