The Employment Insurance System (EIS) is Malaysia's unemployment insurance program administered by SOCSO. Launched in 2018, it provides income replacement and active labor market support for workers who lose their jobs.
Benefits Provided
EIS provides job search allowance (a percentage of previous wages for up to six months), early re-employment allowance for finding work quickly, reduced income allowance when accepting lower-paying work, training allowance during approved programs, and fee for training.
Eligibility Requirements
To claim EIS benefits, workers must have contributed for at least 12 months within 24 months before job loss, lost employment involuntarily, not be receiving other social security payments, and actively seek employment. Voluntary resignation typically does not qualify.
Employer Obligations
Employers must register with EIS and make monthly contributions for eligible employees. Both employers and employees contribute equally, each paying 0.2% of monthly wages up to the wage ceiling. Non-compliance results in penalties and interest charges.