According to the 2015 census conducted by the Department of Statistics in Malaysia, the total number of persons with disabilities was 359,203. In order to provide basic income support to this vulnerable group, the Government of Malaysia introduced the invalidity pension under the Ministry of Human Resources, administered by the Social Security Organisation (SSO).
Malaysia's invalidity pension is a contributory monthly social insurance transfer for those who are permanently disabled. Contributions are calculated at 2.25 per cent of the employee's salary where 1.75 per cent is contributed by the employer and 0.5 per cent by the employee. In order to be eligible, claimants must have lost at least one third of their capacity to work due to the disability, including when caused by chronic diseases, such as kidney failure, heart attack, cancer and mental illness. Claimants must be less than 60 years of age and be certified as a person with disability by health professionals approved by the State. The monthly payment follows the national pension rate, which is set at MYR475, or USD109, and is regularly reviewed according to cost of living. The pension is paid as long as the claimant is living with the disability. Invalidity pensions will be transferred to the eligible dependents if the employee is deceased.
Malaysia's invalidity pension is complemented by further schemes, including a contributory permanent disability benefit for the partially disabled, representing a strong state commitment to uphold the rights of persons with disabilities. While the invalidity pension provides a good level of coverage to claimants, the scheme could be expanded to include allowances for dependents. Nonetheless, schemes such as the invalidity pension make a significant contribution toward building a national social protection floor in Malaysia that is inclusive of persons with disabilities. As of 2016, coverage is extended to the self-employed, own-account workers, workers of the informal sector, business owners and to the liberal professions.
Further Reading:
- Government of Malaysia (2016). Invalidity Pension. Accessed from: http://www.perkeso.gov.my/en/invalidity-pension.html on February 23 2016.