Human Resources Minister Steven Sim announced the improvements to EIS at Parliament on Nov 4.
IMAGINE walking into work this morning, and suddenly, HR calls you in and informs you that the company has to terminate your employment contract. This situation is actually quite common and happens every day.
These days, a job is no longer for life. Sometimes you’re let go after only a year or two.
It’s not because of any mistake you made, but perhaps because the company closes, a project ends, or the economy is unstable.
When a job stops, income stops, but bills, rent and other commitments still need to be paid every month – and many people have experienced this situation.
The government, through the Social Security Organisation (Perkeso), wants to ensure that workers have protection when they lose their jobs.
With the amendment to the Employment Insurance System (EIS) Act 2025, assistance is not just for today but also to help workers recover and find new opportunities.
This step follows the launch of the Lindung 24/7 scheme that protects workers not only during work hours but also outside of work.
These two reforms have different goals but with the same intention: to ensure that workers are always protected, no matter what happens.
What is EIS?
Just like getting health or car insurance, EIS is a form of insurance—but for your employment.
If you lose your job, EIS provides temporary financial assistance, and at the same time, helps workers enrol in retraining to build a new career.
In short, it is a safety net when you fall, so you can still get up and continue with life. EIS is more than just financial aid; it’s a second chance for workers to recover stronger.
Why it’s important
No one is prepared to lose a job, and yet, every year, thousands of Malaysians go through it. Since 2018, more than 363,000 workers have received EIS benefits with a total payment exceeding RM900mil.
For most people, this assistance becomes a lifeline, helping to cover family expenses, pay rent and continue searching for new employment. Without this kind of protection, many might have to fend for themselves.
What changes are being made?
The amendment to EIS will see the government make multiple improvements to expand benefits for those who lose their jobs.
Among the key improvements are increases to the daily training allowance from RM20 to RM30 per day, and maximum training fee from RM4,000 to RM7,000, as well as the introduction of a Mobility Assistance Allowance of RM1,000, to aid those who need to move to a new workplace over 100km from their place of residence.
Job Search Allowance (EMP) remains unchanged at three to six months of basic salary, with tiered payout structures at rates of 80% in the first month, 50% in the second month, 40% in the third and fourth months, and 30% in the final two months.
Early Re-Employment Allowance has also increased from 25% to 50% of the remaining unpaid EMP.
A step forward
The goal of EIS is simple: when you lose your job, life doesn’t have to stop. Through the strengthened EIS, the government aims to ensure that every worker, whether in urban or rural areas, is not mariginalised when affected by job changes.
Every new reform, from Lindung 24/7 to EIS, is a step closer to the vision of a nation that truly protects its workers, at all times and under all circumstances.
