KUALA LUMPUR, May 26 -- For many Malaysians, contributions to the Social Security Organisation (Perkeso) are little more than a routine deduction listed on their monthly payslips, quietly reducing take-home salaries.

But economists say the scheme plays a far wider role in protecting workers against job loss, disability, workplace injuries and long-term income disruption.

A worker earning the minimum wage of RM1,700 contributes RM8.50 a month to Perkeso, alongside RM3.40 to the Employment Insurance System (EIS), while employers contribute RM29.75 to Perkeso and another RM3.40 to the EIS.

Centre for Future Labour Market Studies economist Zharif Luqman Hashim said the system exists to ensure workers have basic social protection when unexp...