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What is Employment Insurance System (EIS)?


EIS is a financial scheme aimed at helping employees who have lost their job, and it is managed by SOCSO. This scheme is meant to enable retrenched workers to gain monetary funds that would help them get back on their feet for up to six months.

What is the rate of EIS (Employment Insurance System)?

The contribution rate for Employment Insurance System (EIS) is 0.2% for the employer and 0.2% for employee based on the employee’s monthly salary.

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Who is subject to EIS (Employment Insurance System)?

  • All employers in the private sector are required to pay monthly contributions for each of their employees. (Government employees, domestic workers and the self-employed are exempted).

  • An employee is defined as a person who is employed for wages under a contract of service or apprenticeship with an employer. The contract of service or apprenticeship may be expressed or implied and may be oral or in writing.

  • All employees aged 18 to 60 are required to contribute. However, employees aged 57 and above who have no prior contributions before the age of 57 are exempted.

  • Contribution rates are capped at insured salary of RM4000.00.

Employment Insurance System (EIS) FAQ

Q1 : What are the eligibility requirements for employees to be covered under the EIS

Employees who are eligible under the Employment Insurance System Act 2017 (Act 800) are as follows:

 

  1. Malaysian citizens / permanent resident

  2. Aged 18-60*

  3. Working in the private sector**

  4. Employed based on a contract of service

* Important exception: Workers aged 57 and above who have never paid contributions before that age are NOT covered by Act 800 and are NOT required to contribute.

** Act 800 does NOT cover domestic workers, the self-employed, civil servants and workers in local authorities and statutory bodies.

Q2 : I have lost my job. Am I eligible to apply for EIS benefits?

All EIS applications must meet the following requirements:

  1. To apply within 60 days from the date of loss of employment

  2. To meet the Contributions Qualifying Conditions, namely the EIS contributions that have been paid based on the EIS contribution schedule and having a minimum number of months within a specified period.

Q3 : What categories of loss of employment that are eligible for EIS benefits?

The categories of loss of employment that are eligible for EIS benefits are as follows:

  1. Normal retrenchment /redundancy

  2. VSS/MSS (Volutary/Mutual Separation Scheme)

  3. Closure of company due to natural disasters

  4. Constructive dismissal

  5. Resignation due to sexual harassment or threats made in the workplace

  6. Resignation after being ordered to perform dangerous duties that are not within the job scope

Q4 : What categories of loss of employment that are not eligible for EIS benefits ?

The categories of loss of employment that are not eligible for EIS benefits are as follows:

  • Dismissal due to employee misconduct

  • Voluntary resignation

  • Retirement

  • The expiry of a fixed-term contract (includes unconditional termination of a contract based on an employer-employee agreement or the completion of the project stated in the contract)

Q5 : How do I apply for EIS benefits if I have lost my job?

The EIS application can be made online via EIS Portal or go to the nearest SOCSO office throughout the country including Sabah and Sarawak.

Q6 : How is the mode of payment and contribution to SOCSO determined?

 

The documents required are:

  1. A copy of your NRIC

  2. Proof of loss of employment, e.g. termination letter

  3. A copy of bank account information

  4. Payslips for the last 6 months

Besides that, applicants are required to provide additional supporting documents based on the type of benefit they are applying for as shown in the table below:

Q7 : How do I submit printed documents when making an online application?

The original documents should be scanned and uploaded to the EIS Portal using the link provided in the online application form.

Q8 : How do I check the status of application made through the EIS Portal?

 

To check the status of application, log in to the EIS Portal using user case ID and password.

Q9 : My application has been rejected by the EIS Officer due to ineligibility. Am I allowed to make an appeal?

For any EIS application that has been rejected, appeal can be made to the Social Security Appellate Board by submitting the application form to the following address:

Urus Setia, Jemaah Rayuan Keselamatan Sosial, Tkt 11, Menara PERKESO, 281, Jalan Ampang, 50538 Kuala Lumpur

Q10 : I am an employee who has lost employment and received the EIS benefits. Am I eligible to apply for EIS benefits for the second time

You are eligible to apply for the second time if you meet the defined contribution eligibility requirements

Q11 : What is the amount of EIS benefit payment am I entitled for the Job Search Allowance?

 

The Job Search Allowance (JSA) provided by SOCSO will be paid based on assumed monthly wage which is 80% for the first month, 50% for second month, 40% for the third and fourth month and 30% for the fifth and sixth months.

Q12 : How can I get in touch with SOCSO if there is any questions or concerns regarding the EIS?

For more information, please contact SOCSO’s Customer Service Line 1-300-22-8000 or e-mail to eis@perkeso.gov.my

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SQL Payroll is compliant with all EIS rules and requirements. all employees’ and employers’ EIS contribution are automatically calculated and in line with the latest rules and rates that are set by Perkeso.

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What is EIS Rate?

Employers and employees will contribute 0.2% each of an employee’s salary, this means that the total contribution would be 0.4% of an employee’s monthly salary, the maximum monthly salary capped at RM 4000.00. No Worries, SQL Payroll software will automatically calculate the EIS compliant to rules and regulation set by the Malaysia government.

What is the EIS rate for employee's age of 60 and above?

If an employee is 60-year-old above, EIS contribution is not required. SQL Payroll will  detect the age of employee and automatic set to NO contribution to EIS.

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