The purpose of enacting the Employment Insurance System Act 2017 (also known as "the EIS Act") is to create a social security programme in Malaysia that will be known as the Employment Insurance System (or "EIS" for short).
Then, on January 1, 2018, following the Minister of Human Resources' gazette, the EIS went into effect. The Social Security Organisation (also known as "SOCSO" or "PERKESO") is now in charge of EIS's administration.
What Are The Benefits of EIS?
Reduced Income Allowance (RIA) - for those with multiple jobs but lost at least one of them. Payment rates and duration of payment are the same as JSA.
Training Fee - paid-for vocational training of up to six months.
Training Allowance - incentives for you to attend and finish your training.
Early Re-Employment Allowance - for JSA recipients to get back into the workforce.
Re-Employment Placement Programme - job search assisted by SOCSO.
Career counselling - job search assisted by SOCSO.
Who is Eligible for EIS benefits?
Not everyone is eligible to claim EIS benefits. As of now, the EIS covers the following:
Malaysian citizens or permanent residents.
Age from 18 to 60.
Works in the private sector only.
The employment is based on a contract of service.
The worker has been contributing to the EIS for a minimum number of months within a specified period.
Who is Not Covered by the EIS?
Public sector (Government servant)
Domestic employees
Self-employed
Local authorities and statutory bodies' employees
Those 57 years old and above who do not have prior contributions
It is compulsory for an employer, who is a wife or a husband who employs their spouse to work in her or his business enterprise under the Employees’ Social Security Act 1969 (Act 4) and Employment Insurance System Act (Act 800), to register and contribute to SOCSO with effect from 1 July 2018, based on the procedure and rate of contribution stipulated by both Acts.
Failure of an employer to do so is an offence under the Act, and if convicted, an employer shall be liable to imprisonment for up to two years or a fine not exceeding RM10,000.00, or both.
Eligibility To Claim Benefits
All employees insured under the Act (known as Insured Persons) who have lost their employment are eligible with the following exceptions:
Voluntary resignation by the Insured Person
Expiry of the Insured Person’s fixed-term contract
Unconditional termination of a contract of service based on an agreement between the Insured Person and his/her employer
Completion of a project specified in a contract of service
Retirement of the Insured Person
Dismissal due to misconduct by the Insured Person
Applicants for benefits must prove that they can work, are available to work and actively seeking work.
Contribution Rates
The Employment Insurance System (EIS) contributions are at 0.4% of the employee’s assumed monthly salary. 0.2% will be paid by the employer, while 0.2% will be deducted from the employee’s monthly salary.
Contribution rates are set out in the Second Schedule and are subject to the rules in Section 18 of the Employment Insurance System Act 2017.
The rate of contribution is capped at a monthly wage ceiling of RM5,000.00.
Hence, employers in the private sector must pay monthly contributions on behalf of each employee.
Type of Employers
Principal Employer
An employer who employs an employee directly under a contract of service or apprenticeship. The employer is responsible for all matters relating to services and payment of wages.
Immediate Employer
An employer who employs employees to perform work under the supervision of the principal employer. This includes a person who has a contract of service with an employee and temporarily lends or leases that employee's service to a principal employer.
Employer’s Responsibility
The principal and immediate employers who employ one or more employees are responsible for registering and contributing to Social Security Organisation (SOCSO) based on the rates specified under the Employees’ Social Security Act, 1969, administered by SOCSO. The principal employers are also responsible for ensuring that all workers employed by immediate employers are registered with SOCSO and that the contributions are paid accordingly. Employers are responsible for reporting all work-related accidents to their workers within 48 hours of notification.
Registration
An employer must complete the Employer's Registration Form (Form 1), the Employee's Registration Form (Form 2), and the other online documents that may be found on the ASSIST Portal to complete the registration process.
Using the ASSIST Portal, any changes regarding the name/address/type/status of ownership of the company or employee can be made.
The SOCSO will no longer utilise the Social Security Number for any purposes and will instead use the Identity Card Number provided by the National Registration Department.
Registration Process
Step 1 (Download)
Step 2 (Complete Forms)
Complete the forms listed in Step 1. Scan the filled forms separately. Prepare a copy of the following documents:
Company supporting documents,
Copy of Certification of Company/Business Registration from SSM; or
Section 14 – Superform
Section 15 – Notice of registration
Section 17 – Certificate of Incorporation
Refer to Senarai Semak Dokumen Sokongan.
Step 3 (Get ID)
Get ID to upload the documents into the system (ASSIST system) - email the Borang Permohonan Enrolment Penggunaan Portal ASSIST to: idportal@perkeso.gov.my Your ID and a temporary password will be emailed to you.
Step 4 (Upload Forms)
Login to the ASSIST using the ID emailed to you and upload the registration forms along with the supportive documents (refer to Step 1 and Step 2).
For reference, please refer to our Panduan Pendaftaran Portal ASSIST.
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