EIS Benefits Malaysia: What Employees Get & How Employers Contribute
Understanding Malaysia's Employment Insurance System for job loss protection
Why Malaysian SMEs Choose HavaHR Payroll
Financial safety net for employees
Re-employment support services
Training opportunities during job search
Employer compliance with EIS Act
Proper contribution management
Clear claim guidance for employees
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EIS benefits for job loss: Job Search Allowance (80% wages Month 1, declining to 30% by Month 6), training allowance, career counseling, early re-employment incentive. Contribution: 0.2% employee + 0.2% employer on wages up to RM5,000. Claim within 60 days of retrenchment.
This guide covers EIS benefits, contribution rates, eligibility requirements, and the claim process for Malaysian employees and employers.
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Frequently Asked Questions
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.