Did you recently lose your job in Malaysia? And now have no idea how to cope with unemployment? The stress of not knowing when you will be able to find another job compounded by financial responsibilities can be difficult to navigate and find your place in the job market. The good news is that there is a safety net available for you – the Employment Insurance System (EIS) - financial support via EIS benefits while you seek a new job. Here’s how to claim them, step by step, plus how it works, how much you can get, eligibility and other common problems.
Eligibility Requirements for Claiming EIS
The EIS program can offer assistance if you are unemployed and facing similar situations. However, before filing a claim, you should thoroughly understand the eligibility requirements. Only then can you EIS claim be processed without hold ups, allowing you to get back to the benefits you need!
Who is Eligible for EIS?
In order to qualify for the EIS claim, you must meet the following criteria:
- Contributions to the EIS: You must have continued to make contributions to the Employee Insurance Scheme by automatic deductions from your salary made by your employer. Contributions must have been made for at least 12 months out of the 24 months immediately preceding your unemployment.
- Reason for Job Loss: this system covers those who lose their jobs through retrenchment or closure of the company which employs them as well as those who resign from jobs that are threatening or harassing such as in the case of females forced to resign from jobs of precarious working conditions and vice versa.
- You must work in the private sector: You’ll need to be employed in the private sector to claim EIS. If you work in civil service, are self-employed, or work in domestic service you cannot make the claim.
Contribution Conditions
Both you and your employer should pay contributions towards EIS insurance. The contribution by each of you also should amount to a fixed percentage of your monthly salary: you each contribute 0.2% of your monthly salary.
The EIS contributions are on a salary ceiling of RM6000 which means that if your salary is above RM6000, your contributions will also be based on this ceiling. Importantly, your employer must also have contributed to the EIS consistently during this time. If that is not the case, you will not be able to receive the EIS benefits.
How to Apply for EIS Benefits
Now that you know whether or not you can apply for it, let’s take a look at the procedure for the submission of EIS claims. The jobless can file an EIS claim in Malaysia without difficulty if they know the steps to follow. Read on to ensure that you don’t miss out on any much-needed money while seeking employment.
Steps to Submit Your Application
- Ensure a Claim is Submitted Within 60 Days: From the date of job loss, it is important that your claim is submitted within 60 days. Failing to do so can result in rejection of your claim.
- Prepare Your Documentation: Get all your documents ready, including your termination letter, proof of identity, and records showing your EIS contributions.
- Online Application: Claims for EIS benefits can be done through the website of Socso. The online process enables you to complete the application and upload documents easily.
- Wait for Approval: After you’ve submitted everything, Socso will review your application. If there are no issues, they will approve your claim and you can get started receiving your benefits.
Documents Required for EIS Claim
To prevent any unnecessary lingering time on your EIS claim, make sure you have these documents ahead of time:
- Proof of Termination of Employment: A termination letter from your employer stating why you lost your job, or a letter confirming that your company is now idle.
- Identification Documents: A copy of your MyKad or passport (if available), as well as your bank account details for the direct deposit of benefits.
- Contribution Records: Official pay slips or records from your employer indicating that EIS contributions were made regularly.
- Additional Documents for Certain Circumstances: If you are quitting your job because of being bullied at work, or being unsafe at work, we may need some extra documents.
Types of Benefits You Can Claim
EIS offers several types of benefits for you if you are unemployed. These benefits will help with your immediate financial needs, as well as for your long term job transition.
How EIS Benefit Payments are Calculated
How much you get from EIS depends on how much you used to get paid and how long you’ve been working. You ease yourself into it and by the time your and my savings have been reduced from Maserati driving level to Fiat Punto levels:).
If your last pay was RM8,000, your first EIS claim amount (for the first month) will be 80% of that sum, ie. RM6,400. The second month amount (i.e. after the first month) will be 50% of RM8,000, so RM4,000. The third month will be 40% of RM8,000, i.e. RM3,200, and so on until the sixth month. This taper off idea is to keep jobseekers looking for work.
Common Issues When Claiming EIS
While the EIS system is designed to support unemployed individuals, there are some common issues and challenges individuals face when applying for EIS.
- Missing Contributions: Your employer may not have made the contributions needed for you to claim, even if you meet everything else.
- Incomplete Documentation: Submitting incomplete documentation can delay the approval of your claim. Make sure you provide them with all the necessary documentation so that there isn’t any hassle along the way.
- Delays in Processing: Like any government process, there can be delays in the processing of claims. It’s important that you keep in touch with Socso for updates on the status of your application.
Additional Support and Resources for EIS Claimants
Alongside financial aid, EIS provides resources intended to aid you in re-entering the workforce. These resources can be significantly beneficial as you seek employment and progress in your career.
- Job Search Allowance: If you are seeking new employment, you may qualify for a Job Search Allowance to help you during that period. EIS will help you while you search for a new job.
- Training Allowances: If you take a training course, EIS will help pay for your training.
- Re-employment Support: Get help with finding a new job more quickly through EIS’s job placement programs and career counseling.
- Job Placement Programs: EIS partners with employers to help unemployed individuals find new jobs.
Tips to Maximize Your EIS Claim
- Claim EIS Benefits ASAP: The sooner you claim EIS, the sooner you’ll be paid! Don’t delay!
- Use Additional Support Services: Take full advantage of the job placement programs and career counseling available through EIS. These services can help you find new opportunities more quickly.
- Cash Loan: While waiting for your claim under the EAP take out a cash loan. This money can keep you afloat until you find another job.
- Be Proactive in Searching for a New Job: The sooner you are out there looking, the sooner you will be back in a job. Take advantage of support from EIS to enhance your skills and credentials.
Conclusion: Navigating the EIS Process with Confidence
How to claim EIS in Malaysia and what you need to know along the way will help you get through this hard time.
Remember, as much as EIS want to help, it’s also up to you to keep looking, do some job hunting and brushing up your skills, maybe get a cash loan so you stay afloat during this tricky time, and by using all the tools you have, you’ll be back on your feet again soon.
FAQ
What is the Employment Insurance System (EIS)?
Employment Insurance System (EIS) of Malaysia Financial assistance to workers retrenched, closed down company, or other qualifying reasons, to enable them to sustain their livelihood through finding new employment. Up to six months' benefit.
Who is eligible to claim EIS benefits?
For EIS eligibility you need to be a private sector employee who's paid into the system and contributed for a minimum of 12 months over the last 24 months, and who has lost their job as a result of retrenchment or closure of the company or threats or harassment resulting in resignation from the job.
How is the amount for EIS benefits calculated?
EIS benefits depend on the funds that you have contributed. Generally you will receive a percentage of your last drawn salary (normally starts off at 80% in the first month and reduces month over month). It depends on how many months you have contributed to the EIS and what your salary is.
Is there a maximum salary amount for EIS benefits?
Is there a cap on the salary used to calculate EIS benefits? Yes. Even if you earn more than RM6,000 per month, the maximum salary considered for EIS calculations is RM6,000.