Last updated: February 2026
EIS Contribution Malaysia: Rates & Benefits (2025-2026)
Employment Insurance System (Sistem Insurans Pekerjaan) Explained
Supports Workers in Transition
Mandatory for all eligible employees
Direct answer
The Employment Insurance System (EIS) or Sistem Insurans Pekerjaan (SIP) is a financial safety net for employees who lose their jobs. It is funded by contributions from both employers and employees (approx. 0.2% each). EIS provides benefits like Job Search Allowance (JSA) and re-employment placement programs.
Understand the EIS contribution structure, who is covered, and the benefits provided to retrenched workers. Learn how to calculate EIS and when to pay.
Key facts
High-signal points for buyers comparing options.
Authority
PERKESO / SOCSO
Payment Due
15th of following month
Employer Rate
~0.2%
Employee Rate
~0.2%
Wage Ceiling
RM6,000
Correct EIS deductions every month
Avoid under/over contribution
Cleaner payroll compliance & reporting
What HavaHR brings together
Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.
Automated EIS Calculation
Wage Ceiling Compliance
Combined Payment with SOCSO
Form 8A (SIP) Generation
Audit Trail
Compare the important differences quickly
| Benefit Type | Description | Amount |
|---|---|---|
| Job Search Allowance (JSA) | Monthly allowance during unemployment | 80% to 30% of assumed monthly wage |
| Early Re-Employment Allowance | Incentive for accepting job early | 25% of remaining JSA |
| Training Allowance | Attending vocational training | RM10 - RM20 per day |
| Training Fee | Cost of training | Up to RM4,000 |
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HR Automation for Malaysian SMEs