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Cash allowance for laid-off workers under EIS in 2018

Starting in 2018, those who have been laid off by their employers will be receiving a cash allowance amounting to RM600 a month for a maximum of a 3 month period. This is in accordance to the new Employment Insurance System (EIS).

According to Datuk Dr Mohammed Azman Aziz, the Chief Executive Officer of Social Security Organisation (Socso), the Malaysian government had allocated RM122 million to Socso in order to carry out the scheme (EIS).

It is expected that over 57,000 individuals will be making a claim from the benefits offered under EIS next year. Furthermore, those who take up the Voluntary Separation Schemes (VSS) are also eligible for the same benefits. However the benefits are not extended to those completing their contracts.

Socso is organizing a roadshow that will cover 17 locations throughout the nation for a month starting in December to educate employers, employees and workers unions of EIS’ coverage, registration, contribution, administration and enforcement.

The scheme will commence in January 2018 as a social safety net aimed at helping laid-off private sector workers with financial aid while they look for new jobs.

Under the EIS scheme, the contribution from employers will 0.2 per cent of an employee’s monthly salary and likewise from the employee.