How to Claim Employment Insurance System When Losing Your Job?
There have been various unemployment assistance efforts since the country went on a Movement Control Order (MCO) amid the Covid-19 pandemic. Malaysia is at a needful time for such help, as many have had their rice bowls affected one way or another. For relatable ways, we ourselves know of immediate friends and family who have been victims of retrenchment during the MCO/CMCO.
In Malaysia most private workers are covered by the Employee Insurance Scheme (EIS). If you’re eligible, you’ll have access to a variety of help, including some financial assistance for up to six months. Employment Insurance System (EIS) is designed as a safety net for workers who have lost their jobs due to retrenchment or other similar circumstances.
It provides financial support for those who are between jobs, allowing them some peace of mind while looking for their next source of employment. However, it also means that all of us will be contributing a portion of our salaries to the system.
What is employment insurance system?
The EIS is managed by the Social Security Organisation (Socso) and is meant to enable retrenched workers to make ends meet for up to six months. It functions similarly to the Employees Provident Fund (EPF), where contributions will go into a pooled fund and then the fund will be invested.
The EIS is not only offered to those who have been retrenched but also those who resigned due to threats to themselves or their families. This even includes sexual harassment at work.
EIS covers these situations of loss of employment:
- Normal retrenchment and redundancy
- VSS/MSS (Voluntary/Mutual Separation Scheme)
- Closure of the company due to natural disasters
- Bankruptcy or closure of the company
- Constructive dismissal
- Resignation due to sexual harassment or threats made in the workplace
- Resignation after being ordered to perform dangerous duties that are not within the job scope
How employment insurance system works?
All private sector employers need to pay monthly contributions for each employee. Civil servants, domestic servants and those who are self-employed are exempted. All Malaysian and permanent resident employees aged from 18 to 60 years old have to contribute. Employees aged between 57 and 60 who have never contributed to EIS are exempted from this protection plan.
The contribution rate for EIS is ~0.2% of the employee’s salary (employer share) and ~0.2% of the employee’s salary (employee share). The maximum eligible monthly salary is capped at RM 4,000. Should you lose your job, then you will be able to claim a number of benefits from the insurance scheme.
How to claim employment insurance system if meets the condition?
It’s a relief to know that you would have some form of allowance in store for you, but as we’ve just mentioned, you won’t be able to rely on this for too long. The allowance allocation can only be claimed for a maximum of 6 months, so you should try looking for a job ASAP to lessen your financial insecurities.
To get your 2nd month’s allowance (and other subsequent months), you will also need to provide proof that you’ve been actively trying to look for a job. Without that, you won’t be able to claim for the months that would follow.
Not only that – your allowances will also lessen by the month:
- 1st month: 80% of your assumed salary
- 2nd month: 50% of your assumed salary
- 3rd & 4th month: 40% of your assumed salary
- 5th & 6th month: 30% of your assumed salary
To get your EIS benefits, you can either apply online or go straight to the PERKESO office. here are the important document need to bring along:
- A copy of your NRIC
- Proof of Loss of Employment (LOE), e.g. a termination letter
- A copy of your bank account information
- Pay slips for the last 6 months
Here’s a simple, step-by-step guide on how to claim your JSA EIS benefit by SOSCO:
- Register at the EIS Portal and complete your application with the necessary information.
- Wait for the result of your application either via email or using the Portal ID.
- Once approved, complete and submit the Re-Employment Placement Form.
- The payment will then be accredited into your account.
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