Malaysia passes Employment Insurance System Act 2017

Dato’ Sri (Dr.) Richard Riot Anak Jaem, Minister of Human Resources
Dato’ Sri (Dr.) Richard Riot Anak Jaem, Minister of Human Resources

Malaysia’s Employment Insurance System Act 2017 (Act 800) has been approved at the Parliament on 18th December 2017. The Act shall be administered by the Social Security Organization (SOCSO), which aims to provide immediate financial assistance to workers who lost their employment. In addition, the affected workers will be specifically assisted to find new employment via employment services by dedicated career counsellors, which also includes training programmes to improve their employability.

Starting from February 2018, employers may register and make payment for contributions through SOCSO’s ASSIST portal whereas the first payment of EIS benefits for workers with loss of employment shall commence in January 2019.


As a temporary measure, the Government has allocated some funds to SOCSO for the PAYMENT OF INTERIM BENEFITS to workers who have loss of employment in the period of 1st January 2018 to 31st December 2018. Those who are eligible will be paid cash benefits of RM600 per month for a maximum of 3 months and is required to participate in the Re-Employment Placement Programme. Workers who have loss of employment between the period mentioned above may apply for the interim benefits through SOCSO’s Online portal (www.perkeso.gov.my/sip) which is accessible on any online application, UTCs, or come forward to any SOCSO offices throughout Malaysia.

Dato’ Sri (Dr.) Richard Riot Anak Jaem, Minister of Human Resources, has advised all employers and employees to carry out their responsibilities dutifully as the EIS is a very crucial economic policy and active labour market policies (ALMPs) in supporting the Government’s initiatives to improve the quality of life of the people and for the competitiveness of the nation.

 For further information on the EIS, please contact SOCSO at 1300 22 8000 or visit SOCSO’s official website at www.perkeso.gov.my/sip from time to time for latest updates.