What is EIS (Employment Insurance System) in Malaysia?

EIS is Malaysia's job loss protection scheme administered by PERKESO. It provides financial assistance and re-employment services to employees who lose their jobs due to retrenchment, VSS, or redundancy. Not for resignation or misconduct termination.

What is the EIS contribution rate?

EIS contribution: 0.2% from employee + 0.2% from employer = 0.4% total. Maximum insurable wage is RM5,000/month. For RM5,000 salary: Employee RM10, Employer RM10, Total RM20 per month.

Who is eligible for EIS benefits?

Eligibility: Malaysian citizens or permanent residents, aged 18-60, employed under contract of service, and lost job due to retrenchment/redundancy/VSS. Must have contributed EIS for at least 12 months within 24 months before job loss.

What benefits does EIS provide?

EIS benefits: Job Search Allowance (JSA) up to 6 months at 80-30% of wages, training allowance during approved courses, early re-employment incentive, reduced income allowance for lower-paying new job, and career counseling services.

What is the Job Search Allowance (JSA)?

JSA provides: Month 1: 80% of insured wages, Month 2: 50%, Month 3: 40%, Months 4-6: 30%. Maximum based on RM5,000 insurable wage. Requires monthly reporting to EIS and active job search evidence.

How do employees claim EIS benefits?

Claim steps: 1) Register at PERKESO portal within 60 days of job loss, 2) Submit required documents (termination letter, IC, bank details), 3) Attend interview at PERKESO office, 4) Receive approval, 5) Monthly reporting for continued payment.

What documents are needed for EIS claim?

Required documents: MyKad (IC) copy, termination/retrenchment letter from employer, latest payslips (3-6 months), bank account details, passport photo, employment contract (if available), and EPF statement.

What is the EIS training allowance?

If attending PERKESO-approved training during job search period: Training fee covered (up to limits), daily allowance for attendance, transport allowance, and extended JSA during training. Improves re-employment chances.

What is the early re-employment incentive?

If you find new job before JSA exhausted: Receive 25% of remaining JSA as lump sum bonus. Encourages quick return to employment. Must be permanent position (not contract less than 12 months).

Are foreign workers covered by EIS?

No, EIS only covers Malaysian citizens and permanent residents. Foreign workers are exempt from EIS contribution. However, employers must continue contributing for all Malaysian employees regardless of mix.

Malaysia-compliant guide

EIS Claim Malaysia: Benefits, Job Search Allowance & How to Apply

PERKESO Employment Insurance System — contributions, eis claim steps and JSA rates

Direct answer

An EIS claim in Malaysia starts within 60 days of retrenchment via PERKESO: Job Search Allowance pays up to 80% of insured wages in month 1 (then 50%, 40%, 30%). Employers still remit eis contribution (about 0.2% + 0.2% on wages up to the insurable ceiling) through payroll.

This guide covers EIS benefits, contribution rates, eligibility requirements, and the claim process for Malaysian employees and employers.

Key facts

High-signal points for buyers comparing options.

Employee Rate

0.2%

Employer Rate

0.2%

Max Insurable Wage

RM5,000/month

Age Range

18-60 years

JSA Duration

Up to 6 months

Month 1 JSA

80% of wages

Financial safety net for employees

Re-employment support services

Training opportunities during job search

Employer compliance with EIS Act

Platform

What HavaHR brings together

Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.

EIS employee and employer amounts on payroll runs

Same contribution wages used for SOCSO and EIS where applicable

EIS lines on payslip PDFs from payroll

PERKESO-related figures exportable with payroll CSV

Comparison

Compare the important differences quickly

JSA Month	Percentage of Wages	Example (RM5,000 salary)
Month 1	80%	RM4,000
Month 2	50%	RM2,500
Month 3	40%	RM2,000
Month 4	30%	RM1,500
Month 5	30%	RM1,500
Month 6	30%	RM1,500

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EIS contribution rates EPF/SOCSO/EIS Calculator SOCSO contribution guide SOCSO Claim Process Payroll calculator hub Payroll Software Malaysia

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