KUALA LUMPUR - Human Resources Minister Datuk Seri R Ramanan said, employers will receive an 80% reduction on Late Contribution Charges (FCLB) from now until the end of February 2026, last Friday in press conference.

He said the decision was made after discussions with the Social Security Organisation (Socso) following penalties imposed on employers who failed to register workers or pay contributions.

“Recently, penalties were imposed on employers who did not register workers and did not pay contributions.

“So today, following discussions, Perkeso has agreed that the penalties be reduced. We are giving an 80% discount, but payment must be made before the end of February,” he said.

Ramanan said about 300,000 employers are affected by the FCLB, involving penalties totalling RM157 million from 2018 to date.

He said employers had earlier been informed that penalties of up to 80% could be imposed for failing to pay contributions.

“All employers must pay, and I hope those who have yet to do so know that they have not paid. 

Now they can enjoy the 80% discount and make payment as soon as possible before the end of February 2026,” he added.

FCLB refers to penalties imposed on employers who do not register workers or fail to pay Socso contributions on time.

The charges are meant to encourage timely payments and ensure workers remain protected under social security schemes.

Ramanan said the ministry is aware that some employers, especially micro, small and medium enterprises, are facing higher operating costs.

He said the temporary reduction in penalties is meant to help businesses continue operating while meeting their social security obligations.