Make use of EIS, retrenched workers urged

KUALA LUMPUR: Eligible retrenched workers should apply for the Employment Insurance System (EIS) benefit, says the Deputy Human Resources Minister.

Datuk Mahfuz Omar said that those who have been laid off could approach any of the 54 offices of the Social Security Organisation (Socso) nationwide.

“Applications must be filed within 60 days from the day a worker loses his job.

“They can also file their application online, via Socso's website at www.perkeso.gov.my/sip,” he said here after presenting EIS benefits to 25 people who were retrenched in December.

They were among the first batch of recipients who received their full EIS benefit for the first month, ranging from RM1,700 to RM3,160 depending on their monthly contributions.

Mahfuz said that as of Dec 14, a total of 22,268 workers who were retrenched have come forward to apply for EIS since it was implemented in January.

Many employers initially opposed the scheme, but there was support for it to go ahead as it was necessary to ensure a social security net for retrenched workers.

Under the EIS, workers who qualify currently receive up to RM600 a month for a maximum of three months.

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, funded by the government with a RM122mil allocation channelled through Socso.

For those retrenched in December onwards and have the minimum 11 months of EIS contributions, they are qualified for the full benefits, such as job-hunting, re-employment and reduced wage allowances.

EIS is a financial scheme aimed at helping those who have lost their jobs until they find new employment. The contributions are collected in a fund in order to provide financial assistance to retrenched employees.

Qualification for EIS include forced resignation, retrenchment, resignation due to an employer’s failure to comply with the terms of contract, resignation due to sexual harassment at the workplace, and the closure of a company or factory.