What Is EIS Malaysia?
When Malaysian employers and employees hear “EIS,” they often think of help during layoffs. While the Employment Insurance Scheme/System (EIS) does play a key role when people lose their jobs, it has much more to offer beyond financial help after job loss. EIS, which PERKESO (SOCSO) oversees, includes several benefits that many people don’t use. These can help working Malaysians at different points in their careers.
Let’s explore five EIS benefits you might not know about — and why they’re so important for today’s employees.
EIS Benefits:
- Early Re‑Employment Allowance (ERA): A cash boost for landing a job sooner
If you find a new job while you’re still receiving JSA, PERKESO doesn’t just stop your allowance—they reward you for getting back on your feet quickly. Under ERA, you receive 25% of your remaining JSA entitlement as a lump sum. Example: if you return to work partway through your JSA period, you’ll get a one‑off 25% of whatever JSA you would have received for the remaining months. This is designed to reduce time out of work and cushion transition costs (commute, childcare, relocation).
- Reduced Income Allowance (RIA): Protection when you lose one of multiple jobs
Not everyone loses their only job. If you hold more than one job and lose at least one (but not all), you won’t qualify for JSA—but you may qualify for Reduced Income Allowance (RIA). RIA recognizes a partial income shock: payment rates and duration mirror JSA, with the important difference that RIA is paid in a lump sum. That makes it a practical bridge if you’re piecing together income from different employers or gigs.
- Training Fee (TF): approved course fees covered (up to programme limits)
EIS isn’t only cash support—it invests in your skills. Through Training Fee (TF), PERKESO pays approved course fees (up to published caps) so you can upskill or reskill while unemployed under EIS. Official materials indicate fee coverage (commonly cited at up to RM4,000) for PERKESO‑approved training programmes aligned to labour‑market demand, making re‑entry into work faster and better paid.
- Training Allowance (TA): Daily incentive for attending and completing training
On top of fee coverage, EIS pays a Training Allowance (TA)—a per‑day stipend while you attend approved courses (commonly RM10–RM20 per day in official briefs). TA reduces the out‑of‑pocket pressure of transport and meals so you can actually complete the training you start. When combined with TF, the total training support can be the difference between “just another job” and a step‑up role.
- Re‑Employment Placement & Career Services: Structured help to land your next role
Finally, EIS is a placement engine. The Re‑Employment Placement Programme (REPP) pairs you with services such as job matching, interview referrals, and career counselling. You’ll be guided to actively search and report job‑hunt activity, which is also how you maintain JSA eligibility month to month. Treat this like a free, structured outplacement service.
Getting to Grips with the Basics: What EIS Means and How It Functions
So, what’s the real EIS meaning?
EIS stands for Employment Insurance System, a financial safety program the Malaysian government introduced under SOCSO. It came into being in 2018 to help employees who had lost their jobs but has grown into a full-fledged employment safety net.
Here’s a quick glance at what is EIS contribution table to help you grasp how much goes in each month:
| Monthly Wages (MYR) | EIS Employee Contribution (0.2%) | Employer Contribution (0.2%) | Total Contribution (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 |
Note: There’s a cap on contributions at a monthly salary of RM5,000.
These small monthly payments build up over time and have an impact on funding the broad range of EIS benefits.
Steps to Claim EIS in Malaysia
If you want to know how to claim EIS, follow these steps:
- Register on the EIS Perkeso Portal: Go to https://eis.perkeso.gov.my/.
- Submit an application: Give your employment history, payslips, and other needed documents.
- Select the right benefit: Pick from Job Search Allowance (JSA), Training Allowance (TA), or other suitable support.
- Attend interviews/training if needed: They might assign you job placement programs.
- Receive payment: After approval, they’ll send payments each month to your account.
The system aims to be easy to use and quick helping you get back to work fast.
Why These Hidden Benefits Matter More Than Ever
Malaysia’s job market keeps changing. Automation, AI, and pandemic shake-ups mean nothing stays the same. The EIS system helps Malaysians adjust, make it through, and even do well during changes.
If you think EIS is just another item on your pay stub, think again. That small amount taken out each month. It might save you tomorrow.
As a company owner or HR staff, telling your employees about these less-known EIS perks can boost spirits, build loyalty, and show that you care about their well-being.
Final Thoughts: Pay Attention to EIS
Next time you check your payslip or review your payroll software, pay attention to the EIS deduction.
And yes! If you looking to enhance your company’s management of compliance, payroll, and HR benefits like EIS? Take a look at our HR & Accounting Software!