From January 2018 onwards, workers who have been laid off will qualify for a cash allowance of RM600 per month for a maximum of three months under the Employment Insurance System (EIS)
According to a report in Bernama, 57,282 individuals were expected to claim the benefit involving more than RM103 million next year.
The report quoted Social Security Organisation (Socso) chief executive officer (CEO) Datuk Dr Mohammed Azman Aziz Mohammed saying that the government has allocated RM122 million to enable Socso to implement the EIS.
"A social safety net"
The EIS programme has been termed as a social safety net aimed at helping private sector workers who lose their jobs to get financial assistance and find new jobs.
"Under the EIS, we will help those who lose their jobs, they are not just compensated but Socso will also match potential jobs to them. We will assist in looking for a replacement job. This is important to see our country reach the status of a developed nation," Bernama quoted Socso Chairman Tan Sri Aseh Che Mat as saying, adding that the move was important to improve productivity.
According to the Socso Chairman, schemes such as the EIS programme would prove to be beneficial to employees in the private sector should something happen to Malaysia's currently stable economy and companies close down.
Under the EIS programme, employees who have been affected by the Voluntary Separation Scheme (VSS) and Mutual Separation Scheme (MSS) are eligible too, Socso CEO Azman Aziz said
He said that Socso would be conducting roadshows for a month in 17 locations nationwide from 6 December onwards.
The aim is to provide an understanding of the coverage, registration, contribution, administration and enforcement of EIS to employers, employees and workers unions in Malaysia, Bernama reported the Socso CEO as saying.
The EIS Bill 2017 was passed by the Dewan Rakyat on 25 October
It will be tabled at the current sitting of the Dewan Negara for final approval. You can read more about the EIS bill here.
Under the EIS scheme, a contribution of 0.2 percent of an employee's monthly salary and the same from employers is needed.