Retrenched or laid off from work can be one of the most stressful experiences, especially when income suddenly stops and commitments continue. Many Malaysian workers may not realise that the Employment Insurance System (EIS), managed by PERKESO, was created to provide temporary financial relief, job placement support, and training opportunities during unemployment.

If you have been contributing through monthly salary deductions, you may be eligible to claim benefits after losing your job through no fault of your own.

What is EIS?

The Employment Insurance System (EIS) is a social safety net introduced to help private sector workers who lose their jobs. Both employees and employers contribute 0.2% each of the worker’s monthly salary into the fund.

For example, if you earn RM3,000 a month, RM6 is deducted from your salary while another RM6 is contributed by your employer.

Who Can Claim EIS?

You may qualify for EIS benefits if you:

• Lost your job due to retrenchment, redundancy, or company closure
• Were dismissed for reasons other than misconduct
• Completed a fixed-term contract that was not renewed
• Have contributed to EIS for at least 12 months within the past 24 months

Who Cannot Claim?

You are generally not eligible if you:

• Resigned voluntarily
• Were dismissed for misconduct
• Retired from employment
• Are self-employed or working as a freelancer

How Much Can You Receive?

EIS provides monthly financial assistance based on your previous salary and contribution period.

Claimants may receive between 30% to 80% of their average monthly salary, with payments capped at RM2,000 per month.

Benefit duration depends on contribution history:

• Less than 3 years contributions – up to 3 months
• 3 to 5 years contributions – up to 5 months
• More than 5 years contributions – up to 6 months

Payments are higher during the first months and gradually reduce over time.

Example:

A worker earning RM3,500 monthly who contributed for four years may receive approximately RM9,550 over five months.

What Documents Are Needed?

To apply, prepare the following:

• MyKad
• Termination or retrenchment letter
• Last three months’ payslips
• Bank account details
• Passport-sized photo (for online application)

The termination letter is especially important as it must clearly state the reason for job loss.

How to Apply

Online Application

The easiest method is through MYFutureJobs portal. Applicants can register, upload documents, and submit claims digitally.

In-Person Application

You may also visit the nearest PERKESO office with original documents and photocopies for assistance.

Important Deadline

Claims must be submitted within 60 days from your last day of work. Missing the deadline could result in losing eligibility.

What Happens After Approval?

Once approved, the first payment is usually made within 14 days. Monthly payments are then credited directly into your bank account.

However, claimants must actively seek employment by:

• Attending PERKESO job placement sessions
• Updating job search records online
• Accepting suitable job offers matching skills and experience

Rejected Claims Can Be Appealed

If your claim is rejected, you have 30 days to submit an appeal. This may happen due to incomplete documents, insufficient contribution history, or unclear termination reasons.

Additional supporting evidence may strengthen your case.

Can You Claim If You Resign?

Voluntary resignation usually does not qualify for EIS.

However, exceptions may exist in cases involving workplace harassment, unpaid wages, or constructive dismissal. Supporting proof such as complaints or salary records will be needed.

Use the EIS Period Wisely

While receiving assistance, workers are encouraged to:

• Update resumes
• Register on job portals such as JobStreet, LinkedIn and Hiredly
• Attend training programmes
• Upskill or switch industries if needed

Losing a job can feel overwhelming, but EIS exists to provide breathing space while workers rebuild their careers. For many Malaysians, it can be the support needed to stay afloat while searching for the next opportunity.

For further details, workers may contact PERKESO customer service at 1-300-22-8000 or visit the official PERKESO website.

Source / Image Credit : MyGovernment - Portal , RinggitPlus , Dr. Azman Aziz