What Is EIS and What You Should Know About It

What is EIS?

 

The Employment Insurance System, (EIS) was first implemented in January 2018 as a social security network aimed at helping workers who lost their jobs for financial assistance and seeking new jobs

  1. Provide immediate financial assistance (7 days after job loss confirmation) to job loss contributors.
  2. Help contributors who lost jobs to get new jobs through job relocation programs including mobility assistance.
  3. Improve the contributors job skill by giving vocational training & training programs

Coverage

Coverage Definition

  1. All private sector employers need to pay monthly contributions for each employee. (Exempt from civil servants, domestic servants and self-employed)
  2. Employee is a person employed by an employer under a service contract or apprenticeship. The service contract or apprentice is either written or oral, express or implied.
  3. All employees aged 18 years to 60 years old must be nominated except for employees aged 57 years and above and no contribution has been paid before reaching 57 years.
  4. Defined contribution coverage is subject to the insured ceiling salary (GYD) of RM4000.00

Contribution Rate

  1. The contribution rate for the Employment Insurance System (SIP) is from 0.2% of employer's share and 0.2% of employee's share of employee's monthly salary.
  2. The contribution rate is subject to the Second Schedule of Section 18 of the Insurance System of Employment Act 2017. All private sector employers have to pay monthly contributions for each employee. (Exempt from civil servants, domestic servants and self-employed)

Employee Qualification that Insured for claim

-All insured employees (intended as insured) who lose their job except:

  1. Voluntary resignation by an insured person;
  2. Expiry of service contract of insured person;
  3. Termination of service contract on mutual agreement of employers and insured persons without terms and conditions;
  4. Completion of work by service contract;
  5. Retirement of insured persons; or
  6. The termination of the insured person's service contract is due to misconduct.

-The key eligibility requirements that must be met by beneficiaries are they must be able to work, be willing to work and actively seek employment.

Contribution Rate


Advantages of SIP

 

Job Placement & Career Counseling

-Provide employment services and support to the Insured to get appropriate employment.

 

Employment Allowance

-Provide employment allowance for 1 - 6 months period subject to contribution eligibility and willingness to resume

 

Early Repeat Allowance

-Provide early retirement allowances as an incentive to encourage the Insured to return to work immediately.

 

Reduced Income Allowance

-Provides a reduced income allowance for the Insured who works with more than one employer and has lost employment.

 

Training Allowance

-Provide daily training allowance if the Insured undergoes training

 

Fi / Training Fee

 -Fund the Insured Personnel training fee paid directly to the registered training provider

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Global Locations

Penang: 3A-1-13, Straits Quay, Jalan Seri Tanjung Pinang, 10470 Tanjung Tokong, Penang, Malaysia

Kuala Lumpur: 23-5, Menara Bangkok Bank, Berjaya Central Park, Jalan Ampang, 50450 Kuala Lumpur

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Penang:

+604-6192547

Kuala Lumpur:

+603-2789115

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Location

Penang Office:

3A-1-13, Straits Quay, Jalan Seri Tanjung Pinang, 10470 Tanjung Tokong, Penang, Malaysia

KL Office:

23-5, Menara Bangkok Bank, Berjaya Central Park, Jalan Ampang, 50450 Kuala Lumpur


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