{"id":17841,"date":"2021-05-31T20:00:00","date_gmt":"2021-05-31T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/employment-insurance-system-eis-malaysia.html"},"modified":"2026-03-26T16:00:40","modified_gmt":"2026-03-26T08:00:40","slug":"employment-insurance-system-eis-malaysia","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/wages-employment\/employment-insurance-system-eis-malaysia.html","title":{"rendered":"A Complete Guide To Employment Insurance System (EIS) Benefits In Malaysia"},"content":{"rendered":"\n

Many Malaysians have lost their jobs or been retrenched during the MCO. If you’re one of them, read this guide to learn more about the Employment Insurance System (EIS) or Sistem Insurans Pekerjaan (SIP) and how much you can claim for your unemployment benefits.<\/strong><\/p> \n

There have been various unemployment assistance efforts since the country went on a Movement Control Order (MCO) amid the Covid-19 pandemic. In his latest address<\/a>, PM Muhyiddin Yassin announced yet another economic stimulus package amounting to RM35 billion to help the country regenerate its economy. <\/p> \n

The country is at a needful time for such help, as many have had their rice bowls affected one way or another. Depart of Statistics\u2019 chief statistician Mohd Uzir Mahidin recently shared<\/a> that Malaysia\u2019s unemployment rate rose to 3.9% (610,000 jobless people) – the highest since June 2010 when the rate was 3.6%. And in more relatable ways, we ourselves know of immediate friends and family who have, in fact, been victims of retrenchment during the MCO\/CMCO. <\/p> \n

So\u2026 what can you do if you find yourself part of this statistic? What should you do after getting retrenched? <\/p> \n

Thankfully, most workers are covered by the Employee Insurance Scheme (EIS) by SOCSO (a.k.a. PERKESO)<\/strong>. If you\u2019re eligible, you\u2019ll have access to a variety of help, including some financial assistance for up to six months. We\u2019ll dive into this in the next few sections, but first, let\u2019s take a look at the basics. <\/p> \n

What is EIS? <\/h2> \n

The Employee Insurance Scheme (EIS), which is administered by the Social Security Organisation (SOCSO), seeks to provide temporary financial assistance for up to six months to workers who are retrenched or have had some form of loss of income<\/strong>.<\/p> \n

This is actually something that the Malaysian government launched not too long ago – October 2017 to be exact. It\u2019s a very helpful initiative for Malaysian workers, and looking at the unemployment statistics, it is now more important than ever.<\/p> \n

Wondering where this pool of money comes from? Well, if you take a closer look at your payslips, you\u2019d notice a small deduction for something called your Employee Insurance Scheme<\/strong>. <\/p> \n

\"\"Monthly EIS deduction as seen in a Malaysian employee’s payslip. <\/em><\/p> \n

Here\u2019s how it works. Both your employer and yourself would contribute 0.2% of your salary to the scheme (total 0.4% monthly)<\/strong>. Monthly contributions start from 10 sen for workers earning RM30 a month, while the maximum amount of contribution is capped at RM7.90 for those earning RM4,000 and above.<\/p> \n

This means that even if you earn RM20,000 a month, you\u2019ll still contribute RM7.90 to the EIS. (RM15.80 when you include your employer\u2019s contribution.)  <\/p> \n

Did you know?
The research and planning for the EIS began way back in 2009 after the 2008 financial crisis. (Source: AskLegal.my)