Boss, you think Lindung 24 Jam become voluntary,
means one less thing to do?
No.

It just changed from payroll deduction problem to paperwork problem.

June payroll just finished.
Payslip suddenly got one more line.
Lindung 24 Jam.
0.75%.
Staff net pay became slightly less.

Staff immediately asked:
“Boss, why deduct more?”

Before you can finish explaining, the rule changed again.

On 8 July 2026, Cabinet decided that PERKESO Lindung 24 Jam is no longer compulsory for local employees.
Voluntary, with immediate effect.

The next day, the Human Resources Minister explained further.

Local employees, voluntary.
Foreign workers, still compulsory.

So now, the boss’s question is not simply:
“To deduct or not to deduct?”

The real question is:
Who chooses to continue?
Who chooses to opt out?
Who signed the form?
Who has not signed?
Is there proof in the file?

Lindung 24 Jam, in simple words, covers accidents outside working hours.

At home.
On rest day.
Going out on Sunday.

As long as it happens in Malaysia and meets the conditions, it may be covered.

The headache is the document.

From 13 July 2026, PERKESO has an opt-out facility.

If a local employee wants to opt out, it is not enough to just say:
“Boss, I don’t want to contribute.”

It is also not enough to WhatsApp:
“Next month don’t deduct me.”

The employee has to sign the Liability Release Declaration.

In plain English, the employee confirms that he chooses to opt out, and understands that after opting out, the accident protection outside working hours is no longer there.

This form is very important.

Because later, if the employee really has a non-work accident and comes back to ask why there is no cover, you cannot just say:
“Last time you said you don’t want to contribute.”

Another important point.

Don’t simply reverse the June deduction.
Because for June, the coverage was already effective.

Staff already enjoyed 24-hour protection.
So the June contribution is a valid contribution.
Don’t reverse here and there until your payroll becomes messy.

So what should SME do now?

First, don’t switch the whole company on or off together.

Foreign workers, continue compulsory.
Local employees, based on individual choice.

Second, if local employees opt out, collect the form.

No form, don’t simply stop deduction.
If there is a valid opt-out, also don’t continue deducting.

Third, explain to staff first.

Don’t wait until payslip comes out only explain.

Fourth, don’t touch June.

Handle July onwards.

Lindung 24 Jam becoming voluntary looks like good news on the surface.

Staff can choose.
Take-home pay may go back up.
Boss may get scolded less.

But for employers, it is not one less thing to do.
It is one more documentation duty.

Read the full content in our blog
https://www.ktp.com.my/blog/lindung-24-jam/13july2026