Losing a job can be a major life challenge. When a source of income stops, monthly commitments like bills and rent still need to be settled. Acknowledging this reality, the government, through the Social Security Organisation (PERKESO), is continually working to ensure Malaysian workers have a robust safety net.
Following the successful launch of the Lindung 24/7 scheme, which protects workers both during and outside working hours, PERKESO is now introducing significant reforms through the Employment Insurance System (EIS/SIP) Act 2025 Amendment.
The objective of this amendment is clear: to help retrenched workers bounce back and find new career opportunities.
EIS: The Mechanism for Employment Protection
For illustration purposes only
The Employment Insurance System (EIS/SIP) functions as an insurance scheme for your employment. When job loss occurs, EIS provides temporary financial assistance and support for workers to undergo retraining (reskilling) so they can build a new career.
Since its introduction in 2018, the scheme has benefited over 363,000 workers, with total payments exceeding RM900 million.
Key Reforms Through the EIS Act 2025 Amendment
The EIS Act 2025 Amendment introduces several significant enhancements that expand the benefits available to workers who lose their jobs. This represents a second chance for workers to rebuild their careers stronger than before.
Here are the 5 major enhancements introduced under the SIP 2025 Amendment:
- Increased Training Allowance (EL): The daily allowance for participants undergoing training is raised from RM10–RM20 to RM30 per day.
- Increased Training Fee (FL) Cap: The maximum fee covered for approved training courses is increased from RM4,000 to RM7,000.
- New Mobility Assistance Allowance (EBM): A new, one-off allowance is introduced to help workers who need to relocate for a new job.
- EBM Value: The Mobility Assistance Allowance is RM1,000 (paid once). This is specifically for individuals who secure a job placement exceeding 100 kilometres (km) from their place of residence.
- Higher Early Re-Employment Allowance (EBSA): The reward for workers who quickly secure new employment is increased from 25% to 50% of the remaining Job Search Allowance (EMP).
Protecting Workers in Every Situation
The goal is simple: when the job is lost, life doesn’t have to stop. Through the strengthened EIS, the government ensures that every worker, whether in urban or rural areas, is not left marginalised when affected by changes in employment. These reforms bring us closer to the vision of a nation that truly protects its workers, at all times and under all circumstances.
