Workmen Compensation


About Workmen’s Compensation Act, 1952

In the early 1990s, there was a great influx of foreign workers into Malaysia due to construction boom and industrialization. The growing presence of foreign workers in Malaysia can be explained by excess demand for labour combine with rapid economic growth. However, these huge influxes give a difficulty for employer to manage the compensation when many foreign workers employed frequently involved in the accident. In order to cope with this problem, Ministry of Human Resources resurrected the Workmen’s Compensation Act, aimed to protect the interest and welfare of all foreign workers in Malaysia.

The Workmen’s Compensation Act was first enacted in 1952. It is a government scheme which was purposely designed to compensate an employee for incapacity flowing from an accidental personal injury sustained within the scope of his employment. Any compensation is valid to claim in two circumstances. First, when injuries, harm or death due to accident happens at the time the worker was working, or second, when injuries, harm or death due to accident happen outside working period, however there is causal relationship between the employment and the injury. This Act was administered by Labour Department throughout Malaysia. Companies have to purchase insurance premiums to insure their workers in case workers meet an accident.


Persons Covered under the Workmen’s Compensation Act, 1952

Initially, Workmen’s Compensation Act (1952) covers all Malaysian Employees. However, in 1st July 1992, all Malaysian workers have been exempted from provisions of this Act as they will be covered under the Employees Social Security Act 1969 (SOCSO).

Starting from 1993, only foreign workers whose earnings are not more than RM500 per month and who employed as manual workers, irrespective of their wages, are protected...