EIS It’s a financial scheme that aims to help employees who lose their jobs to receive temporary financial assistance and find a new job or to obtain training.
Who regulates the EIS?
The scheme is managed by PERKESO (Social Security Organisation - SOCSO).
Employers and workers currently registered with PERKESO will automatically be deemed to be registered under the EIS.
New employers are required to register an employer’s file under the EIS in addition to the application for the employer’s file under the SOCSO Act.
The contribution rate is at 0.2% of the monthly wages for both employer and worker.
For monthly wages of RM 4,000 and above, the highest amount payable by the employer and worker will be capped at RM 7.90 respectively.
A total contribution of RM479.5 million is expected to be collected in 2018 through this pooled fund (EIS) from 6.6 million workers and 430,000 employers who have registered.
For each allowance, the rates of benefits are based on the assumed monthly wages and detailed in the Third Schedule of the Employment Insurance System Act 2017.
The Sistem Insurans Pekerjaan (SIP) benefit payment will commence in January 2019.
INTERIM BENEFIT FOR RETRENCHED WORKERS IN 2018
About 57,200 retrenched workers in Malaysia are qualified for a cash allowance of RM600 per month for up to three months under the Employment Insurance System Act 2017 (Act 800).This interim benefit involves more than RM103 million in 2018.
Apart from receiving such an interim aid, eligible workers who are laid off this year are also required to participate in the Re-Employment Placement Programme which is regulated by SOCSO to enhance staff workability.
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