The Social Security Organisation (PERKESO) has announced the final participation figures for the Lindung 24 Jam scheme on September 9, over a total of 8.5 million workers — 87.6 percent of eligible contributors had chosen to remain in the scheme after the opt-out window closed on August 31.

Of the 12.4 percent who opted out, approximately 1.2 million workers — more than half earn less than RM3,500 a month. That translates to roughly 624,000 workers in the B40 category who chose to forgo round-the-clock accident protection.

PERKESO group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed did not hide his concern. "There is a bit of worry on our end at PERKESO regarding their protection because these individuals are among the B40 group," he said. "Over 96 percent of the B40 community currently lacks any form of private insurance coverage".

What the RM2.10 Means

Lindung 24 Jam extends PERKESO's accident coverage beyond working hours — covering injuries during commutes, sports, family outings, and daily activities. The contribution rate is 0.75 percent of monthly wages, fully borne by the employee. For a worker earning RM1,700 a month, that is approximately RM11 a month — less than the price of a plate of nasi lemak and a drink.

For a worker earning RM3,500, the deduction is about RM26 a month.

On paper, the cost is minimal. Mohammed Azman pointed out that the rate is among the lowest in the region — Indonesia's social security contribution can reach 1.74 percent, Myanmar's up to 1.5 percent, and South Korea's as high as 18.56 percent.

Yet the opt-out rate among lower-income workers suggests that what looks affordable on a spreadsheet does not always feel affordable in a household budget.

The Geographic Divide

The opt-out rate was not evenly distributed. Selangor, Kuala Lumpur, and Putrajaya accounted for 53 percent of those who withdrew, followed by Johor at 11 percent and Penang at 9 percent.

These are the most urbanised, highest-cost regions in the country. Workers there face the highest living costs — rent, transport, food — and the tightest household budgets. 

Why the B40 Are Leaving

Research by the Malaysian Institute of Economic Research and other bodies has consistently shown that lower-income groups exhibit higher present bias — a behavioural tendency to prioritise immediate needs over future risks. Workers earning below RM2,500 were more likely to disengage from insurance products, facing both structural barriers (lack of funds) and behavioural barriers (present bias).

When a worker is barely covering rent, food, and transport, an additional RM11 to RM26 deduction is not an abstract number. It is the difference between a full tank of petrol and a half tank. It is a school uniform that cannot be bought, a utility bill that goes unpaid.

There is also a perception problem. Social protection is not the same as commercial insurance. PERKESO provides income replacement, medical benefits, and dependants' benefits, a safety net designed to prevent workers from falling into poverty after an accident.

But that distinction is often lost on workers who have never had to claim. The benefits — temporary disablement allowance, permanent disablement benefit, funeral expenses, dependants' benefits — feel remote to someone who has never experienced a serious accident.

Mohammed Azman warned against comparing social protection to commercial insurance. "Don't think that because you earn RM10,000 and can afford insurance, you don't need social protection," he said. "Insurance and social protection are different".

But for workers who are struggling to make ends meet, the difference may not feel meaningful. What feels meaningful is the RM26 that stays in their pocket this month.

What the Claims Data Tells Us

Between June 1 and August 31, PERKESO received 6,330 claims and paid out RM9.97 million in benefits — an average of 69 claims per day, or roughly three every hour. Of those who filed claims, 74 percent earned below RM3,500 a month.

In other words, the very workers who opted out in the largest numbers are the ones most likely to need the protection the scheme provides.

Some of those who opted out have already filed claims after accidents that occurred outside working hours. They discovered too late that they had given up their coverage. Nearly 10,000 workers who opted out early have already signed back up, according to Mohammed Azman.

It’s Not Wrong To Opt Out

The 12.4 percent who opted out are not irresponsible. They are not ignorant. They are making a calculation that reflects the reality of their financial lives: when money is tight, the future can wait.

But the future does not wait. Accidents do not schedule themselves around payday. And when a worker earning RM2,500 a month is injured in a motorcycle accident on a Sunday afternoon — outside working hours, outside the scope of traditional PERKESO coverage — the RM26 saved becomes irrelevant. What matters is whether there is a safety net beneath them.

Lindung 24 Jam is that safety net. It is not perfect. It is not generous. But it is the last line of defence before a family falls into poverty.

The question is not whether the scheme is worth RM26 a month. The question is whether 624,000 workers earning below RM3,500 can afford to find out the hard way that it was.