Employment Insurance Scheme

http://www.thestar.com.my/news/nation/2017/05/02/insurance-scheme-for-private-sector-workers-to-kick-off-with-rm70mil/

Check out the link above.  The Government has introduced an Employment Insurance Scheme (“EIS”).  Some of the objectives of this EIS includes providing income protection who lose their jobs, increasing employability to those who lose their jobs, providing support for job search, job matching, job placement and workers mobility.

The important points for this scheme/system are:

  1. The rate of contribution will be announced by the government after the Bill has been approved. Few speculations that you guys might heard before is that the 0.25% from the employee, 0.25% from the employer. However, this rate is subject to final confirmation.
  2. The eligibility to receive payments would apply to loss of employment due to certain reasons only.  Where loss of employment is because of (dismissal due to) misconduct, voluntary resignation, retirement and expiry of fixed term contract, there is NO entitlement;
  3. The ex-employee will obtain money every month till s/he manages to find a job. However, it applies up to 6 months only, and the allowance will stop if on the 7th month and the employee is still unable to find work.
  4. Throughout the unemployment period, there will be provision of training allowance where these training will be provided by verified trainers.
  5. The EIS is going to be implemented on 1st January 2018.
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