EIS (Employment Insurance System) is the SOCSO-managed scheme that gives Malaysian employees temporary financial support if they lose their job involuntarily. It’s a small monthly deduction most employees barely notice, until they actually need it.
What Does EIS Actually Do?
EIS provides Employment Insurance, Public Employment Services, and Labour Market Information to Malaysia’s private-sector workforce. Beyond just paying out cash after a layoff, it also funds job-matching support (through MyFutureJobs) and reskilling programmes for workers navigating a changing job market.
What Benefits Can You Claim?
If you’re retrenched or lose your job involuntarily, EIS offers several types of support:
- Job Search Allowance (JSA): a monthly cash payment for 3 to 6 months, depending on your EIS contribution history, while you look for new work
- Early Re-Employment Allowance: a one-off bonus (25% of your remaining JSA entitlement) if you find a new job before your JSA period ends
- Reduced Income Allowance: partial support if you hold multiple jobs and lose one of them
- Training Fee and Training Allowance: covers approved upskilling or reskilling courses, plus a daily allowance while attending
- Career counselling and job placement support via PERKESO’s employment services
How Much Can You Claim?
JSA is calculated as a percentage of your “assumed monthly wage,” starting at around 80% in the first month and stepping down in the following months. The exact amount is capped based on the EIS insured wage ceiling, which was raised to RM6,000 in October 2024, so anyone still assuming an older cap from a pre-2024 source is working off outdated numbers.
Because the exact monthly JSA amount depends on your specific wage bracket and current PERKESO rate tables, the most accurate figure for your situation is the one shown when you check directly through the PERKESO ASSIST Portal (assist.perkeso.gov.my) or the official EIS contribution table, rather than a flat number, since these tables are updated periodically.
Eligibility: What You Need to Qualify
- You must have contributed to EIS for a minimum number of months within a specified period (the Contributions Qualifying Conditions, or CQC)
- You must apply within 60 days of losing your job
- Your loss of employment must fall within EIS’s covered categories. Voluntary resignation, retirement, misconduct dismissal, and expiry of a fixed-term contract are generally excluded
Frequently Asked Questions
What is EIS in Malaysia?
EIS (Employment Insurance System) is a PERKESO-managed scheme providing financial assistance, job-search support, and reskilling opportunities to employees who lose their jobs involuntarily.
How much is the EIS Job Search Allowance?
It’s calculated as a percentage of your assumed monthly wage (starting around 80% and stepping down over time), capped at the current EIS wage ceiling of RM6,000. Check PERKESO’s official contribution table for the exact figure for your wage bracket.
How long can I receive EIS benefits?
Between 3 and 6 months, depending on your EIS contribution history.
Can I get a bonus for finding a job quickly?
Yes. The Early Re-Employment Allowance pays 25% of your remaining JSA entitlement as a lump sum if you’re re-employed before your JSA period ends.
Does EIS cover training, not just cash payments?
Yes. EIS also funds Training Fees and a Training Allowance for approved reskilling or upskilling courses.
Related Reading
- How to Apply for EIS Benefits in Malaysia
- SOCSO Contributions Malaysia: What You Need to Know
- HR & Payroll Compliance Checklist for Malaysian SMEs
Making Sure Your Payroll Keeps Employees Covered
EIS only works for an employee if contributions have actually been paid correctly and consistently, which means it’s a payroll accuracy issue as much as an HR one. If you’d rather have EIS, SOCSO, and EPF contributions calculated and submitted correctly every month, talk to Righthouse’s EIS compliance team.
