Did you recently get laid off? PERKESO/SOCSO’s EIS benefits can help relieve some of your burden while you search for your next opportunity. 

Losing your job is hard, especially in Malaysia where we don’t receive unemployment handouts. And it gets even harder if you are the breadwinner of the family with parents, spouse, children, and siblings to support.

The good news is that the Employment Insurance System (EIS) managed by the Social Security Organisation (SOCSO or also known as PERKESO) could help you get back on your feet while you are looking for your next job!

This article is a comprehensive guide to EIS, its eligibility and benefits, and learn how to claim your benefits should unemployment strike you.

What is the Employment Insurance System (EIS)?

The EIS provides income and job-searching help to Malaysians or permanent/temporary residents who have lost their jobs in the private sector. It was first established in 2018 under SOCSO, and you would have noticed the line item of ‘Employment Insurance System’ in your payslip.

Workers are required to contribute 0.2% of their salary every month, while employers also contribute an additional 0.2%.

Who are Eligible to Apply and to Claim?

As with all things, there are terms and conditions for who is eligible to apply for SOCSO EIS benefits:

  1. Employees in the private sector who are Malaysian and permanent or temporary residents.
  2. Between the ages of 18 and 60.
  3. Paid EIS contributions for at least 12 months
  4. Must be able to work and be actively looking for work
  5. Fulfil SOCSO’s criteria for loss of employment
  6. Apply for EIS benefits within 60 days after losing your job

Here are the conditions for the loss of employment that are covered by SOCSO:

  1. Loss of job due to the company going through difficult times (retrenchment)
  2. The company is going bankrupt or closing
  3. Voluntary/Mutual Separation Scheme
  4. The company is unable to operate due to natural disasters or civil unrest
  5. The company is not complying with your contract terms and conditions
  6. The company threaten you or your family members (including sexual harassment)
  7. Asked to do dangerous tasks that are outside the job scope

Who are Not Eligible?

Just be aware that if you resign voluntarily, you will not be eligible for SOCSO’s EIS benefits. Here are the other conditions that will not be applicable:

  • End of a fixed contract
  • End of a project
  • You agree to terminate a contract with your employer with no conditions
  • You retire
  • Termination of the contract due to misconduct

What are PERKESO/SOCSO’s EIS Benefits?

If you are eligible according to the conditions set above, there are 5 benefits that SOCSO will provide you.

1. Job Search Allowance (JSA)

SOCSO will provide an income allowance of 30% to 80% of your last-drawn salary for a minimum of 3 months to a maximum of 6 months while you search for a job. The schedule for the income allowance is so:

  • First month: 80%
  • Second month: 50%
  • Third and fourth month: 40%
  • Fifth and sixth months: 30%

However, the maximum benefit you can get is capped at RM4,000. That means if you used to earn RM8,000 a month, you can only get RM4,000 at the maximum, and not RM6,400 under the 80% for the first month.

You need to show that you are actively looking for a job by applying for jobs on SOCSO’s job portal, MYFutureJobs.

2. Early Re-employment Allowance

If you manage to find a job before the 6-month mark, SOCSO will pay about 25% of the total JSA (excluding the ones that have already been paid out).

You will need to show proof that you have accepted the job offer and reported for duty.

3. Reduced Income Allowance

If you have multiple jobs (like a freelancer) and lose one of multiple income sources, SOCSO will provide income allowance for that too.

You would need to provide proof of your employment.

4. Training Fee and Allowance

SOCSO provides a maximum of RM4,000 for you to undertake a re-skilling or training session with one of their training providers. You can find the list of courses here.

Additionally, they also provide an allowance of RM10 to RM20 per day for you to attend the training sessions.

5. Job Search Assistance

You will be assigned an Employment Service Officer for your process of finding a job. He or she will help you by

  1. Register for an account with SOCSO’s job portal, MYFutureJobs
  2. Helps with matching job positions with your requirements
  3. Provide counselling on what skills to reskill on
  4. Handle all your questions

How to Apply For an EIS Claim?

Before you start applying, make sure that you have the following documents and details:

  • MyKad or any other Identification Card/Passport
  • Proof of loss of employment (like a letter or official document)
  • Bank account information
  • Pay slips for the last 6 months

To get started, log on to the EIS portal here. You will be asked to provide your identification number or, if need be, register for an account.

After you log in, upload all your documents stated above, and register for the Re-employment Placement Program. You will be assigned an Employment Services Officer who will help you with the next parts of the process.

Conclusion

Hold your head up high. Losing a job isn’t the end of the world. If you are eligible for SOCSO’s benefits under the EIS program, you can get help and support through income and job help.

With SOCSO’s EIS support, finding your next job could be made easier.

 

Let us know in the comments below on what you think about PERKESO/SOCSO’s EIS program!

 

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