PETALING JAYA: A total of 292,250 employers have registered for the Employment Insurance Scheme (EIS), a social safety net for retrenched workers managed by Social Security Organisation (Socso), says its chairman Tan Sri Aseh Che Mat.
He said EIS took effect on Jan 1 this year and RM36.8mil has been collected for the scheme so far.
“As of now, 1,336 workers have benefited from EIS, with each of them receiving RM600 monthly as interim payments,” he told the media during a working visit to Wisma Perkeso Selangor here yesterday.
He said a total of RM990,000 was paid out to workers so far, adding that the RM600 was paid for three months to give the workers a source of income while they look for a new job.
Retrenched workers eligible for the scheme receive RM600 per month for three months as interim payment until the fund matures in February 2019, he said.
After the fund matures, workers can receive up to 90% of their last drawn salary for six months after they are retrenched.
He said that the EIS, which will benefit about 6.6 million Socso contributors, has long been championed by workers’ unions as it acts as a social safety net for retrenched workers.
During the visit, Aseh handed out cheques and a wheelchair to eight Socso contributors.
Among them was 34-year-old S. Danesh Kumar, who received the RM600 EIS interim payment.
Danesh, who is a father to a four-year-old child, said that he was glad to receive the payment, as it will help ease the financial burden of his family while he looked for another job.
The former technical analyst said his wife is now the sole provider for the family.
It was reported in December last year that under the EIS, employers and employees would contribute 0.2% each and the payouts to eligible recipients were expected to begin from January 2019.
However, workers who are retrenched in 2018 will be eligible to receive interim benefits in the form of cash allowances for a maximum of three months.
“This will be funded by the Government with an RM122mil allocation channelled through Socso,” Human Resources Minister Datuk Seri Richard Riot said.