Malaysia Implements Employment Insurance System

The Malaysian government passed the Employment Insurance System Bill in October 2017 as a new protection measure, and it became compulsory on 1 January 2018. The system – or scheme – itself is administered by the country's Social Security Organisation (Socso), and both employers and employees must make contributions.

The EIS is intended to assist employees in situations where they have lost their employment. Alongside financial assistance, other components of the EIS include training programmes and job-seeking assistance designed to help the Insured Persons (IP) return to work as soon as possible. The meaning of Loss of Employment is stipulated under section 30(1) & (2) of the Act.