Malaysia’s Employment Insurance System (EIS) is a government-mandated social protection scheme that provides temporary financial assistance to workers who lose their jobs involuntarily. Managed by PERKESO (Pertubuhan Keselamatan Sosial), EIS has been a vital safety net for Malaysian employees since its introduction in 2018. Understanding the EIS rates in 2026 is essential for every employer and HR professional to ensure accurate payroll processing and full legal compliance.
This quick reference guide breaks down everything you need to know about Malaysia’s Employment Insurance System (EIS) rates in 2026 — from contribution percentages and wage tables to eligible benefits and compliance requirements.
What Is the Employment Insurance System (EIS)?
The Employment Insurance System (EIS) was established under the Employment Insurance System Act 2017 (Act 800) and came into force on 1 January 2018. It is a joint contribution scheme funded by both employers and employees to provide short-term financial relief and career transition support to retrenched workers.
EIS is administered by PERKESO and operates alongside SOCSO contributions. The scheme is designed not just to offer monetary assistance, but also to help retrenched workers regain employment faster through career counselling, job placement services, and training programmes.
Who Is Covered Under EIS in Malaysia?
EIS applies to most private sector employees in Malaysia. However, some categories of workers are excluded from coverage.
Employees Covered by EIS
- Malaysian citizens and permanent residents working in the private sector
- Employees aged 18 to 60 years old
- Employees earning any monthly wage (contributions are capped at RM4,000/month)
Employees Excluded from EIS
- Domestic servants (e.g., housemaids, gardeners)
- Self-employed and freelance workers
- Civil servants and employees in the public sector
- Employees aged 57 and above who have never made an EIS contribution before January 2018
- Employees who have reached 60 years of age
EIS Contribution Rates in Malaysia 2026
For 2026, the EIS contribution rate remains unchanged at 0.4% of the employee’s monthly wages, split equally between the employer and the employee.
| Contributor | Contribution Rate |
|---|---|
| Employer | 0.2% of monthly wages |
| Employee | 0.2% of monthly wages |
| Total | 0.4% of monthly wages |
The maximum insurable monthly wage is RM4,000. This means the maximum EIS contribution per party per month is RM8.00, regardless of how much an employee earns above this ceiling.
Employer’s Responsibility
Employers must deduct the employee’s 0.2% share from their monthly salary and remit the total 0.4% contribution (employer + employee share) to PERKESO by the 15th of the following month. This is done together with SOCSO contributions through the PERKESO e-Caruman portal or appointed payment channels.
Employee’s Share
The employee’s contribution of 0.2% is automatically deducted from their gross salary each month by the employer. Employees do not need to make any separate payment — the employer handles the full remittance on their behalf.
EIS Contribution Table by Wage Bracket (2026)
The following table provides a quick reference for EIS contribution amounts based on monthly wage brackets, as per the PERKESO schedule:
| Monthly Wages (RM) | Employee Share (RM) | Employer Share (RM) | Total (RM) |
|---|---|---|---|
| Up to 30.00 | 0.05 | 0.05 | 0.10 |
| 30.01 – 50.00 | 0.10 | 0.10 | 0.20 |
| 50.01 – 100.00 | 0.20 | 0.20 | 0.40 |
| 100.01 – 200.00 | 0.35 | 0.35 | 0.70 |
| 200.01 – 300.00 | 0.50 | 0.50 | 1.00 |
| 300.01 – 500.00 | 0.90 | 0.90 | 1.80 |
| 500.01 – 700.00 | 1.30 | 1.30 | 2.60 |
| 700.01 – 1,000.00 | 1.90 | 1.90 | 3.80 |
| 1,000.01 – 1,500.00 | 2.75 | 2.75 | 5.50 |
| 1,500.01 – 2,000.00 | 3.60 | 3.60 | 7.20 |
| 2,000.01 – 3,000.00 | 5.20 | 5.20 | 10.40 |
| 3,000.01 – 4,000.00 | 7.00 | 7.00 | 14.00 |
| Above 4,000.00 | 8.00 | 8.00 | 16.00 |
Note: Contributions above RM4,000 monthly wages are capped at RM8.00 per party.
Benefits Available Under EIS
When a covered employee is involuntarily retrenched, they can apply for a range of EIS benefits. These benefits are designed to support workers financially while they search for new employment and upgrade their skills.
1. Job Search Allowance (JSA)
The Job Search Allowance provides a monthly cash payment to retrenched workers while they look for a new job. The allowance is based on the claimant’s last drawn salary and is paid for up to 3 to 6 months, depending on their EIS contribution history. The payment rate starts at 80% of the previous insured wage in the first month and gradually decreases over the claim period.
2. Early Re-Employment Allowance (ERA)
If a claimant secures a new job before the JSA period ends, they become eligible for the Early Re-Employment Allowance. This is a lump sum payment equivalent to the remaining months of JSA entitlement, rewarding workers who find employment faster.
3. Reduced Income Allowance (RIA)
Workers who accept a new job with a lower salary than their previous role can apply for the Reduced Income Allowance. This benefit helps bridge the income gap during the transition to lower-paying employment.
4. Training Fee Assistance (TFA)
PERKESO provides Training Fee Assistance to fund approved skills training programmes for retrenched workers. This helps unemployed individuals upgrade their qualifications and improve their chances of reemployment in higher-value roles.
5. Career Counselling
Free career counselling and job placement assistance is available through PERKESO’s Employment Service Centres nationwide. This service supports workers in resume writing, interview preparation, and identifying suitable job opportunities.
How to Pay EIS Contributions
Employers can remit EIS contributions through the following PERKESO-approved payment channels:
- PERKESO e-Caruman portal (www.perkeso.gov.my) — the primary online submission channel
- Internet banking — via Maybank2u, CIMB Clicks, RHB Now, and other participating banks
- PERKESO kiosks — self-service kiosks at PERKESO offices nationwide
- Pos Malaysia — over-the-counter payment at post offices
Contributions must be submitted by the 15th of each following month. Late contributions attract a surcharge of 6% per annum on the outstanding amount, calculated daily from the due date.
Key Takeaways for Employers in 2026
- EIS contribution rate in 2026: 0.4% total (0.2% employer + 0.2% employee)
- Maximum insurable wage: RM4,000/month
- Maximum monthly contribution per party: RM8.00
- Contribution due date: 15th of the following month
- Payment platform: PERKESO e-Caruman portal
- Late penalty: 6% per annum surcharge
Conclusion
Malaysia’s Employment Insurance System (EIS) remains an important pillar of the country’s workforce protection framework. For 2026, the EIS contribution rate is maintained at 0.4% of monthly wages — 0.2% from the employer and 0.2% from the employee — capped at RM4,000 per month. Understanding these rates and ensuring timely contributions protects both your business and your employees.
For businesses looking to streamline payroll processing, statutory deductions, and HR compliance, investing in an integrated HR and payroll system can make EIS contributions seamless and error-free. Smart Touch offers workforce management solutions that help Malaysian businesses stay compliant with PERKESO, EPF, and EIS requirements while improving overall HR efficiency.
Frequently Asked Questions (FAQ)
Q1: What is the EIS contribution rate in Malaysia for 2026?
The EIS contribution rate in 2026 is 0.4% of monthly wages — 0.2% from the employer and 0.2% from the employee. Contributions are capped at RM8.00 per party per month for wages above RM4,000.
Q2: Who is required to contribute to EIS in Malaysia?
All private sector employers with at least one eligible employee are required to register with PERKESO and make monthly EIS contributions. This covers Malaysian citizens and permanent residents aged 18 to 60 working in the private sector.
Q3: When is the deadline for EIS contribution payment?
EIS contributions must be remitted to PERKESO by the 15th of the following month. For example, contributions for June 2026 are due by 15 July 2026. Late payments attract a 6% per annum surcharge.
Q4: Can an employee claim EIS if they resign voluntarily?
No. EIS benefits are available only to employees who lose their jobs involuntarily — such as through retrenchment, company closure, or expiry of a fixed-term contract. Voluntary resignation does not qualify for EIS claims.
Q5: How long can a retrenched employee receive Job Search Allowance?
A retrenched employee can receive Job Search Allowance (JSA) for up to 3 to 6 months, depending on their total EIS contribution period. Workers with longer contribution histories are entitled to longer JSA payment periods.
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