LINDUNG 24 Jam (SKBBK): A Month of Changes That Left Many Malaysian SMEs Confused

By Annie Wong CFP®

If you are an employer, HR personnel or payroll officer, chances are the past few weeks have been one of the most confusing periods for PERKESO compliance.

Within just six weeks, employers experienced multiple policy updates, new forms, withdrawn forms, portal issues and operational uncertainty regarding the Skim Kemalangan Bukan Bencana Kerja (SKBBK), also known as LINDUNG 24 Jam.

Let’s recap what happened, what employers are experiencing today, and what I recommend SMEs should do moving forward.

How Everything Started

Effective 1 June 2026, employers were informed that the SKBBK contribution of 0.75% would be implemented.

As a result, SMEs generally fell into two groups.

Group 1 – Compliance First

These employers immediately updated their payroll system and started deducting 0.75% from employees’ June salary.

Their objective was simple:

“Follow the latest requirement and avoid any compliance issue.”

Group 2 – Wait and Observe

Some employers were uncertain about the implementation details.

Since PERKESO announced a six-month grace period with no penalties during the transition, these employers decided to monitor further developments before making any payroll deduction.

At that time, both approaches were understandable.

The First Major Policy Update (8–9 July 2026)

On 8 and 9 July 2026, further clarification was issued.

The participation was updated to become:

• Mandatory for foreign workers
• Voluntary for Malaysian employees

This immediately created another wave of questions among employers.

Many HR departments had already deducted contributions from employees’ June salary.

Others had not deducted anything yet.

Another New Requirement – Employee Consent Form

Soon after, PERKESO published the Borang Penyertaan Skim Kemalangan Bukan Bencana Kerja, allowing local employees to indicate whether they wished to participate (Opt-in) or not (Opt-out).

Again, employers reacted differently.

Group A

HR departments immediately downloaded the form, printed copies and requested every employee to complete and return it.

Group B

Many employers were unaware that this consent form had even been published.

As a result, no employee declaration was collected.

Another Update on 14–15 July

Just as many employers were collecting the participation form, another update took place.

The earlier participation form was removed from the SKBBK website.

Instead, employers now found only the Liability Release Declaration (Notis Pelepasan Liabiliti SKBBK).

Naturally, many HR and payroll personnel began asking:

• Which form should we use?
• Do we still need employee consent?
• Should we continue deducting?
• Should we refund employees?
• What is the latest procedure?

These frequent changes understandably caused uncertainty among many SMEs.

Updated 15.7.2026 8pm: If opt-out, and want to opt-in again, the Opt-In form (sertai Semula) is available again!

15 July – Submission Deadline Arrives

Adding to the challenge, 15 July was the statutory deadline for employers to submit and pay:

• SOCSO
• EIS
• SKBBK (for employers who had deducted the June contribution)

Unfortunately, many employers also experienced technical issues on the PERKESO ASSIST Portal.

Some common feedback included:

• Unable to edit the SKBBK amount
• Unable to add SKBBK contribution
• System errors during submission
• Difficulty uploading payroll files

Many payroll officers were unsure whether the issue was related to the latest policy changes or system updates.

Having Trouble Uploading Your Payroll File?

If your issue is related to converting the Excel file into a Text File, you may try the following:

Step 1

Download the Excel File Converter to Text File from the PERKESO ASSIST Portal.

Step 2

After downloading, right-click the Excel file and select Properties.

Step 3

If you see Unblock under the Security section, tick it before clicking Apply and OK.

Step 4

Reopen the Excel file, enter:

• Employer Number
• Employee details
• Salary
• Contribution month
• Contribution year

Then click Convert to generate the Text File.

Official PERKESO ASSIST Guide:

https://www.perkeso.gov.my/atas-talian/untuk-majikan/portal-assist/panduan-portal-assist.html

Annie Wong’s Recommendation for SMEs

Based on the developments over the past few weeks, my practical recommendation is as follows.

1. Make use of the six-month grace period.

Since PERKESO has announced a transition period without penalties, there is no need to rush into payroll deductions while implementation procedures are still evolving.

2. If your company has already deducted the 0.75% from employees’ June salary, consider refunding the amount to employees first.

This avoids confusion while waiting for each employee’s latest participation status.

3. Issue an internal memo.

Inform employees that the company will temporarily defer the deduction until the latest implementation process is completed.

4. Conduct a staff briefing.

Help employees understand:

• What LINDUNG 24 Jam covers
• The benefits provided
• The difference between Opt-in and Opt-out
• Their available choices

An informed employee is better able to make an appropriate decision.

5. Ask employees to submit their latest declaration through Portal.

Employees may now log into the PERKESO portal to indicate whether they wish to continue participating or opt out.

https://lindungfaedah.perkeso.gov.my/

After submission, they should download their latest declaration and provide it to HR or Payroll for record keeping.

To be completed before 31st Aug 2026.

6. Resume payroll deduction only when appropriate.

In my opinion, employers should resume the 0.75% deduction after:

• Employees have submitted their latest declaration;
• HR has completed proper documentation;
• The PERKESO ASSIST Portal is functioning smoothly;

or

• Before the six-month grace period expires,

whichever comes first.

This helps ensure payroll compliance while minimizing unnecessary corrections.

Final Thoughts

The implementation of LINDUNG 24 Jam over the past few weeks demonstrates how quickly compliance requirements can evolve.

For SMEs, the biggest challenge is often not the contribution amount itself, but keeping up with changing procedures while ensuring payroll accuracy and proper documentation.

My advice is simple:

Do not panic.

Take advantage of the grace period, communicate clearly with your employees, keep proper records, and monitor official PERKESO announcements before making long-term payroll decisions.

Good compliance is not about rushing.

It is about making informed decisions based on the latest official guidance.

Your Personal Financial Coach

Annie Wong

Disclaimer: This article is intended for educational purposes based on publicly available information and observations up to 15 July 2026. As PERKESO may issue further updates or clarifications, employers should always refer to the latest official announcements before making payroll or compliance decisions.

Full Slides of Explanation, please download from Tax 202 > Chapter Download > SOCSO SKBBK Slides