You are possibly eligible for unemployment benefits under the Employment Insurance System (EIS) if terminated due to the Covid-19 crisis. Still, you must apply within 60 days after losing it. Employment Insurance System (EIS) automatically registers private-sector workers earning more than RM30 per month, administered by the Social Security Organization (SOCSO/Pertubuhan Keselamatan Sosial – Perkeso). As part of EIS, you receive a job search allowance each month (assuming you cannot find a new job within six months), which can last up to six months. A percentage of your last drawn salary will be allocated to you each month as an allowance. In the first month, your allowance is 80% of your salary. Then, it reduces every month. Before losing your job, if you earned RM2,500, you could get the following:
Perkeso says they will process it within seven days. They will pay the approved applications within another seven days. There is a maximum salary of RM4,000 for the allowance, which is also the top salary for contributions to EIS. As long as you earn at least RM4,000 a month, you will still be eligible for EIS benefits and can contribute to them. However, your contributions and gifts will be based only on the RM4,000 salary limit. Please visit Perkeso’s website for EIS calculations of benefits and contributions.
Who Is Covered By EIS?
Residents of Malaysia or Malaysian citizens
- Individuals from 18 to 60 years old (except those who have never contributed to the EIS before turning 57, who the EIS does not cover)
- Private sector employees (except for those working for statutory bodies, local authorities, state and federal governments, domestic workers, and self-employed individuals)
- Contract of Service-based work
What Does EIS Cover?
- Retrenchment /redundancy
- Voluntary/Mutual Separation Scheme
- Insolvency of a company or natural disasters that close the business
- Employee resignation (broken employment agreements or sexual harassment and performing tasks beyond the job’s scope).
EIS does not cover the following:
- Misconduct leading to employee dismissal
- Resignation by choice
- Retirement
- Expiration of a fixed-term contract between an employer and employee regarding their termination terms.
How Else Can EIS Help You?
You can also receive the following benefits from EIS:
- Reduced income allowance: One-time payment based on a percentage of your monthly salary
- Training fee: RM4,000 for a six-month vocational training course
- Training allowance: A monthly payment of RM20 per day of training for up to 6 months
- Early re-employment allowance: Job search allowance recipients who find work while still receiving the funding receive a one-off payment. The recipients will receive 25% of their original job search allowance.
Perkeso also provides the following under the EIS:
- Re-employment placement program
- Career counseling.
What Is The Process For Claiming EIS?
Visit any Perkeso office or access the EIS portal. To do so, you will need:
- Please provide a copy of your IC
- Proof of loss of employment (LOE), such as a termination letter,
- An account statement from your bank
- Last six months’ pay stubs
Other conditions are as follows:
- You should apply within 60 days if you lose your job
- You should check with Perkeso regarding their contribution requirements
- Job loss due to reasons covered by EIS
Additional Assistance
Perkeso now also provides other assistance in response to Covid-19 besides the EIS. Employers can also take advantage of the Employment Retention Programme (ERP), which offers them RM600 every month for putting workers on no-pay leave for up to six months. Employers must apply for the program since it is for them who will, in turn, reimburse affected employees. Further details are here. A second option offered by Perkeso is SIP Plus 600, RM600 payments per month for a maximum of three months. You can receive benefits if you registered with EIS and lost your job but do not meet specific requirements. If interested, fill out the application here.
