EIS Malaysia Isn’t Just for Retrenchment – 5 Other Hidden Benefits You Might Be Missing

eis malaysia isn’t just for retrenchment

What Is EIS Malaysia? 

When most Malaysians hear “EIS,” they think about money help during layoffs. But here’s the real deal — the Employment Insurance System (EIS) run by PERKESO (SOCSO), does way more than just give quick cash after you lose your job.  EIS has turned into a full-on job safety net that helps workers through job changes, learning new skills and finding new work — it gets Malaysians ready for a job market that’s changing because of robots AI, and how things are different after COVID.  This guide shows you five EIS perks that most workers (and even HR folks) don’t know about — and why they’re a big deal in 2025. 

Getting to Know How EIS Works 

The government rolled out EIS (Employment Insurance System) in 2018 following the Employment Insurance System Act 2017. This system protects workers in the private sector who pay into it every month through their wages.  Both employers and employees fund EIS through matching monthly payments. Each side contributes 0.2% of the worker’s monthly salary, with a maximum of RM5,000. 

 EIS Malaysia Contribution Table (2025) 

Monthly Wages (RM)  Employee 0.2%  Employer 0.2%  Total 0.4% 
1,000  2.00  2.00  4.00 
2,000  4.00  4.00  8.00 
3,000  6.00  6.00  12.00 
4,000  8.00  8.00  16.00 
5,000+  10.00  10.00  20.00 
These little monthly payments contribute to a fund that supports various EIS perks — not just Job Search Allowance (JSA), but also programs to train, reskill, and protect income. 

5 EIS Perks You Might Not Know About 

1. Early Re-Employment Allowance (ERA) – A Bonus for Getting Back to Work Quickly 

When you land a new job while you’re still getting Job Search Allowance (JSA), EIS gives you a bonus — not a penalty.  You’ll get 25% of your leftover JSA money as a one-time cash bonus.  Example  Let’s say you were set to receive RM4,000 in total JSA and found a job halfway through. You’d get 25% of the unused RM2,000 = RM500 as a lump-sum ERA.  Goal: This bonus aims to speed up job hunting and help cover costs like transport, childcare, or moving for a new job. 

2. Reduced Income Allowance (RIA) – Support for Partial Job Loss 

If you work multiple jobs and lose at least one (but not all), you might not be eligible for JSA, but you can still get Reduced Income Allowance (RIA).  EIS acknowledges partial income loss giving a one-time payment equal to what your JSA would have covered for that part.  Purpose: Offers quick help if you lose some of your income but keep other jobs. 

3. Training Fee (TF) – Free or Subsidised Skill Courses 

EIS offers more than just money. It also helps you learn new skills for jobs in high demand through approved training programs.  Under the Training Fee (TF) benefit, PERKESO covers the cost of training courses — up to RM4,000 for each person, based on the program.  Goal: This allows job seekers to gain or update skills in fields like digital marketing, accounting software, and technical trades — boosting their chances of finding work in the long run. 

4. Training Allowance (TA) – Earn While You Study 

People who join EIS-approved courses get a daily Training Allowance (TA) — RM10–RM20 each day — to help pay for travel and food.  Along with TF, EIS stands out as one of Malaysia’s most wide-ranging retraining programs.  Goal: Eases money worries so trainees can concentrate on finishing their courses and getting back to work quicker. 

 5. Re-Employment Placement Programme (REPP) – Career Guidance & Job Matching 

EIS also works as a job-finding tool.  REPP gives job hunters access to: 
  • Career advice 
  • Job matching and referrals 
  • Interview setup 
  • Monthly check-ins (to stay eligible for JSA) 
This step-by-step help is like a high-end job placement service — but it doesn’t cost a thing.  Purpose: Helps people without jobs get back to work quicker often into roles that are better than their previous ones. 

How to Get EIS Benefits in Malaysia (2025 Update) 

If you qualify getting EIS is simple: 
  • Register Your Account: Set up a profile with your IC and job information. 
  • Submit an Application: Send in payslips, termination letters, and other papers. 
  • Choose Your Benefit: Pick JSA, TA, TF, ERA, or RIA based on your circumstances. 
  • Attend Appointments/Training: Take part in job matching or training sessions as scheduled. 
  • Receive Payments: After approval, EIS will credit your benefits to your bank account each month or in one go (this depends on the benefit type). 
Pro Tip: File a claim within 60 days of job loss to avoid disqualification. 

Reasons for Employers to Value EIS 

While EIS benefits employees, HR and employers have a key part in making sure everyone follows the rules and knows about it.  Here’s why companies should care: 
  • Gives workers peace of mind: Employees feel safer knowing EIS covers them. 
  • Makes the company look good: Shows your business cares about staff well-being. 
  • Keeps payroll in line: Stops fines under SOCSO and EIS Act 2017. 
  • Helps keep staff: Workers like knowing all about their perks. 
Today’s HR teams should connect EIS tracking and submissions right into their payroll systems — this ensures correct contributions each month. 

Make EIS & Payroll Management Easier with Info-Tech 

Keeping track of EIS contributions by hand? That’s when mistakes and holdups happen.  Info-Tech’s HRMS & Payroll Software lets you:  
  • Figure out EPF, SOCSO, and EIS 
  • Create and send in required reports right away 
  • Link contributions with LHDN e-filing 
  • Stay in line with Employment Act 1955 and PERKESO 
  • Let employees see their own payslips, EA forms, and deductions 
Bonus: Info-Tech’s mobile app gives workers a way to check their payslips, deductions, and EIS info right on their phones — building openness and confidence. 

Why EIS Awareness Has More Importance Than Ever in 2025 

Malaysia’s job market keeps changing — with machines taking over tasks digital shifts, and new ways of working reshaping how people earn a living.  EIS isn’t just about job loss anymore — it’s about resilience and re-employability.  That little bit taken out of your pay each month. It’s putting money into job safety, learning your whole life and being ready for what’s coming. 

Closing Thoughts 

EIS stands out as one of the most overlooked advantages in Malaysia’s social protection system. It extends beyond coverage for job loss — providing training, placement, and income protection programs that help employees succeed, not get by.  As an HR or business leader, ensure your team grasps these hidden benefits — and keep your payroll software, compliant and automated.  Want assistance managing EIS, SOCSO, and payroll compliance? Info-Tech can streamline your HR operations today.   Take A Look At Our  HRMS  &  Accounting Software!

Frequently Asked Questions:

How much do people pay for EIS in Malaysia? 

Bosses and workers each chip in 0.2% of the worker’s monthly pay (up to RM5,000).
You bet as long as they have an EPF-registered contract and money goes into the pot.
SOCSO helps with workplace accidents or sickness, while EIS gives a hand when you lose your job, need new skills, or want to find work again. 
You need to submit your application within 60 days of your last day at work. 
Pick an all-in-one HR system like Info-Tech. It does the math for contributions and keeps EIS files up to date for PERKESO to review.