- Overview of EIS
The Employment Insurance System (EIS) was first implemented in January 2018 by PERKESO. It is a financial scheme aimed at helping employees who lost their jobs until they find new employment. The contributions are being collected in a fund in order to provide financial assistance to retrenched employees. It also aims to provide extended welfare coverage and aid in job search via career counselling and job-hunting assistance.
- Employer & Employee Contributions
All private sector employers need to pay monthly contributions for each employee. Civil servants, domestic servants and those who are self-employed are exempted. All Malaysian and permanent resident employees aged from 18 to 60 years old have to contribute. Employees aged between 57 and 60 who have never contributed to EIS are exempted from this protection plan.
- Contribution Rates
The contribution rate for EIS is ~0.2% of the employee's salary (employer share) and ~0.2% of the employee's salary (employee share). The maximum eligible monthly salary is capped at RM 4,000. You may refer to the contribution table below for more information: https://www.perkeso.gov.my/en/rate-of-contribution.html
Know more about Malaysian Payroll Statutory Contributions:
SOCSO - https://support.justlogin.com/hc/en-us/articles/4404834346381-SOCSO-JustLogin-Malaysia-Payroll
EPF - https://support.justlogin.com/hc/en-us/articles/4404842471693-EPF-JustLogin-Malaysia-Payroll
PCB - https://support.justlogin.com/hc/en-us/articles/4404835521933-PCB-JustLogin-Malaysia-Payroll
Form to be submitted Yearly by Malaysian companies - https://support.justlogin.com/hc/en-us/articles/4404836735245-Forms-that-Malaysian-Companies-need-to-Prepare