SKBBK No Longer Fully Mandatory: HR Guide to the Latest LINDUNG 24 JAM Update

SKBBK No Longer Fully Mandatory: HR Guide to the Latest LINDUNG 24 JAM Update

SKBBK, also known as LINDUNG 24 JAM, has received a major update.

The Government has announced that the scheme will be voluntary for Malaysian employees, while it remains mandatory for foreign employees. For HR and payroll teams, this means payroll handling should be done carefully during this transition period.

Quick Summary

ItemLatest Update
SchemeSKBBK / LINDUNG 24 JAM
Malaysian employeesVoluntary / opt-out option available
Foreign employeesStill mandatory
Opt-out methodPERKESO to provide online opt-out process
Payroll impactHR should avoid rushing permanent payroll changes until official implementation is clear
HR reminderIf contribution has already been deducted, handle remittance carefully

What Has Changed?

Previously, SKBBK / LINDUNG 24 JAM was treated as a mandatory contribution.

Based on the latest Government and PERKESO announcement, the direction has changed:

Employee CategoryLatest Position
Malaysian employeesParticipation is voluntary
Foreign employeesContribution remains mandatory

This means local employees may choose whether they want to continue with SKBBK coverage, while foreign employees remain covered under the existing requirement.

What Is the Opt-Out Process?

PERKESO has stated that contributors who do not wish to continue with SKBBK / LINDUNG 24 JAM can choose to opt out by completing a liability release declaration.

The opt-out option is expected to be made available online through PERKESO.

For HR, this means employees should not be removed from contribution casually without following PERKESO’s official opt-out process.

What Should Employers Do Now?

During this transition period, employers should avoid making rushed payroll changes.

SituationSuggested HR Action
Malaysian employee wants to opt outAsk employee to follow PERKESO’s official opt-out process once available.
Employee has already opted out and informed HRKeep the opt-out record and update payroll accordingly.
Contribution already deducted from salaryConsider remitting as usual unless PERKESO provides different instructions.
Foreign employeeContinue contribution as current requirement remains unchanged.
Payroll setupAvoid permanent system changes until PERKESO confirms the final implementation process.

If Contribution Was Already Deducted

One important issue is contribution that has already been deducted from employees’ wages but not yet remitted to PERKESO.

During this interim period, employers should be careful before reversing, withholding, or refunding the deducted amount.

A safer approach is to wait for PERKESO’s official implementation guidance, especially to avoid disputes if an accident happens before the contribution is remitted.

HR Checklist

Before changing payroll treatment, HR should check:

ChecklistStatus
Latest PERKESO announcement reviewed
Malaysian employees informed about voluntary status
Foreign employees remain under mandatory contribution
Opt-out records collected before payroll changes
Already deducted contributions reviewed carefully
Payroll system not permanently changed too early
Internal HR/payroll team aligned on next action

HR Compass Reminder

This article is for general HR knowledge sharing. Employers should always refer to PERKESO’s latest official announcements and implementation guidelines before making final payroll decisions.