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RM600 cash allowance for retrenched workers under EIS effective Jan 2018

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Retrenched workers in Malaysia will qualify for a cash allowance of RM600 per month for up to three months under the Employment Insurance System (EIS), starting from next year, Bernama reports.

About 57,282 individuals were expected to claim the interim benefit involving more than RM103 million next year, according to Social Security Organisation (SOCSO) chief executive officer Mohammed Azman Aziz Mohammed.

“Through the EIS programme, those who take up voluntary separation schemes (VSS) are also eligible for the benefit,” he said at a media conference yesterday (5 December).

The CEO also stated that SOCSO plans to conduct roadshows for a month in 17 locations nationwide to provide better understanding of the coverage, registration, contribution, administration and enforcement of EIS to employers, employees and workers unions in the country.

He also said that the government had allocated RM122 million to SOCSO to implement the EIS, according to Bernama.

Earlier, Human Resources Ministry secretary-general Mohd Gazali Abas had said the ministry is targeting RM470 million to be contributed by 6.4 million private-sector workers through the programme.

The EIS Bill, which will be implemented in January, aims to provide workers who have lost their jobs with temporary financial assistance.

The monthly contribution of 0.4% of the employee’s salary would be split equally between employer and employee under the EIS Scheme.

The bill was passed by the Dewan Rakyat on Oct 25.

Photo / 123RF

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