Employment Insurance System to be implemented from January 2018
Employment Insurance System(EIS) is a form of social safety net that aims to help workers who lose their jobs. EIS contains two components of benefits namely financial assistance and employment services programmes.
First component: the affected workers would be provided with temporary income assistance to support themselves and their families while searching for a new job. They would also be given additional financial assistance if they undergo accredited training programmes to enhance their employability.
Second component: in addition to the financial assistance, the affected workers would be supported with employment services programmes in order to help them getting new and suitable jobs as soon as possible. This includes job search assistance, job matching, career counselling and career training.
Who will be covered by EIS?
The implementation of EIS will cover all local private sector workers, regardless of their salary.
Based on existing data, EIS is estimated to benefit about 6.6 million workers. The number will increase in tandem with increment of workforce in the country.
Unemployment (excluding voluntary resignation, contract employment period has expired in accordance with the terms of the prescribed contract, termination for misconduct and retirement obligations.)
How will EIS be funded? 就业保险计划的费用多少？
EIS will be funded through payment of contributions from workers and employers.
Employer 雇主 (0.2%)
Employee 雇员 (0.2%)
Currently, retrenched workers will be paid severance payment as stipulated under the employment termination and layoff benefits (ELTB). So, why introduce EIS？
ETLB covers those earning RM2,000 and below only (RM2,500 in Sabah and Sarawak) while EIS would cover all local private sector workers. Therefore, EIS coverage will be more comprehensive. Protection for workers who are covered under ETLB will also be improved as they would be getting EIS benefits as well. ETLB只包括那些赚2000令吉（沙巴和沙捞越为2500令吉）或以下的雇员，而就业保险计 划则覆盖所有私营部门的雇员。 因此，它的覆盖面将更全面。 ETLB所涵盖的雇员的保护也将得到改善，因为他们也将获得就业保险计划的好处。
Based on the Labour Department’s statistics for the past 10 years, about RM65 million severance payment per year are yet to be paid to retrenched workers. Although there has been court order, the employers have not paid the compensation for reasons such as winding up of businesses or have no financial resources to do so.
When worker loses his or her job, it means loss of ability to earn a living, especially if the compensation is not paid. Today, certain categories of jobs have become obsolete due to the advent of new technology; therefore, protection against loss of employment must be enhanced too.
当雇员失业时，意味着丧失谋生的能力，特别是在没有支付补偿的情况下。 今天，由于新技术的出现，某些类别的工作已经过时， 因此，也要加强对失业者的保护。
How workers will be benefited by EIS?
Workers who have lost their employment will be provided with personalised employment services support such as job search, job counselling, arrangement of interview and other services to help the workers get back to suitable employment as soon as possible.
In addition, workers who have been insured under EIS, would be eligible for the following financial assistance in the event of loss of employment:
1) Job Search Allowance (JSA)
JSA will be paid between 3 to 6 months based on descending percentage of insured wages (last drawn salary). For example, if a worker has insured wages of RM1,000 , he/she would be eligible to receive RM800 for the first month, RM500 for the second month and RM400 for the third month if the percentage is set at 80%, 50% and 40% respectively.
根据保险工资，JSA将在3至6个月内支付给索偿者。例如，如果 一名员工已经投保了 1,000令吉的工资，那么他/她将有资格获得第一个月的800令吉，第二个月的500令吉和第 三个月的400令吉，这是依据百分比定在80％，50％ 和40％的算法。
2) Early Re-employment Allowance (ERA) incentives
- ERA will be paid at the rate of 25% of the balance of JSA if the worker secures a new job before his or her JSA is used up. For example, if the worker obtains new job in the second month of the 6 months JSA eligibility, he or she would receive 25% from the remaining 4 months JSA. In the initial stage, an employee who secures a new job would normally be paid wages at the end of his first month. Therefore, ERA is a financial incentive until he receives his wage for the first month. The purpose of ERA is to encourage unemployed workers to be back to employment as soon as possible.
- 如果雇员在JSA用完之前获得新工作，ERA将按照JSA余额的25％支付。 例如，如果雇员 在6个月的JSA资格的第二个月中获得新工作，他或她将从剩下的4个月JSA中获得25％的工 资。在最初阶段，获得新工作的员工通常在第一个月的月底支付工资。 因此，ERA是一个财务奖励，直到他获得第一个月的工资。 ERA的目的是鼓励失业者尽快重新就业。
3) Training Allowance (TA)
- TA will be paid at the rate of 25% of insured wages, subject to minimum RM300 and maximum RM600 for a maximum 6 months period. For example, if insured wages is RM1,500 , the amount of TA is RM375. The training programmes will be based on demand of job market to ensure the worker will be better equipped in searching for a new job.
- TA将按保险工资的25％缴纳保费，最低保费为300令吉，最高限额为600令吉，最长为6个月。 例如，如果保险工资是RM1,500，那么TA的数额就是375。 培训计划将根据就业市场的需求，确保工人在寻找新工作方面有更好的准备。
4) Reduced Income Allowance (RIA)
- In Malaysia, there are workers who work for more than one employer. If one of the employer terminates his employment, the worker would be paid RIA in lump sum as the partial replacement to the income that was reduced.
- 在马来西亚，有些雇员会为超过一位雇主工作。 如果其中一名雇主终止了其工作，那么该雇员将被一次性支付RIA，作为部分替代减少的收入。