The Social Security Organisation (Perkeso) will start processing payment to the next-of-kin of 12 crew members and nine Freescale Semiconductor Malaysia Sdn Bhd staff who were onboard Malaysia Airlines (MAS) flight MH370, based on their eligibility.

Human Resource Minister Datuk Seri Richard Riot Jaem said under the Perkeso scheme, the next-of-kin will receive RM1,500 as funeral expenses and a maximum of RM2,655 under the Employment Injury Scheme and Invalidity Pension Scheme, depending on the nature of business of the respective individual.

"Perkeso will ensure MH370 passengers fulfill the requirement. Under the Employee’s Social Security Act 1969, “employment injury” means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of his or her employment," he said in a statement today.

The rate of payment under ‘employment injury’ would be calculated from 90 percent of his or her single-day salary. Of that, 3/5 of will be paid to his or her spouse and 2/5 to their children below the age of 21.

Yesterday, the Department of Civil Aviation (DCA) officially declared that the aircraft flight MH370 had crashed and all the 239 passengers and crew members on board were presumed to have perished.

The Boeing 777-200ER aircraft disappeared from radar screens one hour after taking off from the KL International Airport en route to Beijing at 12.41am on March 8, 2014.

Its flight path is believed to have ended in the southern Indian Ocean.