EIS PERKESO: How to Apply and Claim Its Benefits

Last updated on Apr 18, 2023

EIS, or Employment Insurance System, is a financial aid scheme set up by PERKESO (also known as SOCSO) for retrenched employees. The aim of EIS is to provide a source of funding and support during the retrenchment period, and it is important to know how to claim EIS.

The EIS is a highly beneficial scheme for those struggling to bridge the time between their current unemployment and their next job. Read the article to learn about the benefits and how to claim EIS.

Benefits of EIS

PERKESO’s EIS provides several valuable benefits to insured individuals, from job-finding support to re-employment allowances.

Job Search Allowance (JSA) : A well-known feature of EIS, where successful applicants can claim up to 6 months of allowance.
Reduced Income Allowance (RIA) : For individuals under multiple employment and have lost one or more jobs. Shares the same payment rates and duration as JSA.
Training Fee & Allowance: Individuals will have access to funded vocational training for up to 6 months. As incentive to complete training, an allowance is also provided.
Early Re-Employment Allowance : To support JSA recipients returning to the workforce.
Re-Employment Placement Programme: A SOCSO-assisted job search to hasten individuals’ employment.
Career counselling : Receive counselling on your career options from SOCSO.

Aside from the above benefits, EIS has also introduced a Graduate Empowerment Programme (GEP) to aid graduates in their final semester with job seeking. The programme features skill assessment, interview workshops, and more.

Who is Eligible for EIS Benefits?

The EIS covers a wide range of individuals contributing to Malaysia’s workforce, and all Malaysian citizens and permanent residents aged 18-60 are eligible. More details on who is eligible for EIS benefits can be found below:

Available for EIS Coverage:

Individuals working in the private sector
Individuals employed based on a contract
Individuals who have been contributing to the EIS fund for a minimum number of months within a specified period of time

Not Available for EIS Coverage:

Self-employed workers
Domestic workers
Civil servants
Workers in local authorities and statutory bodies
Workers aged 57 and above who have never paid contributions before that age

It is important for individuals to be aware of their eligibility and know how to claim EIS, so as to not deprive them of this beneficial fund. Employers also need to be aware of the EIS contributions as it is mandated by law.

How to Apply for EIS Benefits?

Now that you know what EIS entails and how to claim EIS, the next step is to learn how to apply for EIS. The various benefits under PERKESO’s retrenchment financing scheme apply to various categories of employment loss.

Applicants must apply within 60 days from the date of loss of employment. They must also meet the Contributions Qualifying Conditions (CQC), that is to have paid monthly contributions for a minimum number of months.

Eligible Categories of Loss of Employment:

Normal retrenchment/redundancy
Closure of company due to natural disasters
Constructive dismissal
Resignation due to sexual harassment or threats made in the workplace
Resignation after being ordered to perform dangerous duties that are not within the job scope

Non-Eligible Categories of Loss of Employment:

Dismissal due to employee misconduct
Voluntary resignation
VSS/MSS (Voluntary/Mutual Separation Scheme)
Retirement
The expiry of a fixed-term contractormal retrenchment/redundancy
Closure of company due to natural disasters
Constructive dismissal
Resignation due to sexual harassment or threats made in the workplace
Resignation after being ordered to perform dangerous duties that are not within the job scope

After learning about EIS and how to apply for EIS, individuals can submit their applications to reap the provided benefits. Applications can be made through the EIS portal, or at the nearest PERKESO office.

For more on EIS and other key aspects of Malaysian labour practices, you can visit Kakitangan.com’s main blog or email us at sales@kakitangan.com. Our HR experts are happy to assist.1