You have been paying into EIS every single month you have been employed, and most Malaysians only find out what it does the week they need it. That week is a bad time to learn that there is a deadline attached.
EIS — the Employment Insurance System, or Sistem Insurans Pekerjaan — is a PERKESO scheme set up under the Employment Insurance System Act 2017. It exists to give workers temporary income and help getting back into work after losing a job through no fault of their own.
Here is how to actually use it.
What you have been paying, and what it buys
EIS takes 0.2 per cent of monthly wages from you and 0.2 per cent from your employer, calculated against a wage ceiling of RM6,000. On the payslip it is the smallest of the statutory deductions and the easiest to ignore.
What it buys is a set of benefits, not a lump sum:
- Job Search Allowance (EMP) — a monthly allowance for three to six months
- Reduced Income Allowance (EPB) — for people with more than one employer who lost one of the jobs
- Early Re-Employment Allowance (EBSA) — a 25 per cent incentive for returning to work early in your allowance period
- Training — funded courses and job-matching support through PERKESO and MYFutureJobs
The allowance is the headline. The re-employment support is arguably the more valuable half, and the part most claimants under-use.
Who qualifies — and who does not
This is where most claims fall down, so read it properly.
Eligible causes of job loss under the scheme:
- Normal termination of employment
- Voluntary Separation Scheme (VSS) or Mutual Separation Scheme (MSS)
- Business closure or cessation of operations
- Closure of the workplace due to natural disaster
- Constructive dismissal
Not eligible:
- Termination due to your own misconduct
- Voluntary resignation
- Mandatory retirement
The line is involuntary versus voluntary. Resigning because the job was awful does not qualify. A VSS you signed does — because a separation scheme is treated as an eligible cause even though you agreed to it.
You also need a minimum number of qualifying monthly contributions, which is why someone who has been in the workforce three months and someone who has been in it three years are not in the same position.
The 60-day window
Apply within 60 days of losing your employment.
This is the single most important line in this guide. The allowance does not sit waiting for you to feel ready. Applications outside the window put the claim at risk, and the two months after a retrenchment tend to disappear faster than anyone expects.
Do the application in the first week. Job hunting can happen in parallel.
What to prepare before you apply
Gather these first — chasing them mid-application is what turns a twenty-minute task into a fortnight:
- Proof of loss of employment. Termination letter, VSS or MSS agreement, or a notice of closure. This is the document the whole claim rests on.
- Your IC. MyKad, front and back.
- Bank account details in your own name, for the allowance to be credited.
- Employment details — last employer, position, last drawn wages, last day of service.
- Your contribution history, so you know where you stand on qualifying months. It is worth checking your SOCSO and EIS contributions online before you file rather than assuming your employer remitted everything.
If the separation was disputed — a constructive dismissal claim, for instance — keep the correspondence. It is part of establishing the cause.
How to apply
Applications go through the PERKESO EIS portal online, or in person at any PERKESO office if you would rather do it across a counter.
The sequence:
- Register or log in to the EIS portal.
- Complete the Loss of Employment application with your employment details.
- Upload the supporting documents, with the proof of loss of employment as the anchor.
- Submit and note your application reference.
- Watch for the status update. PERKESO may request additional documents or clarification — respond quickly, because the clock does not stop for correspondence.
- Once approved, register on MYFutureJobs if you have not already. Job-search activity is part of the scheme, not an optional extra.
What the money actually looks like
The Job Search Allowance is not a flat monthly figure. It steps down.
PERKESO's published schedule pays a percentage of your assumed monthly wage: 80 per cent in the first month, then 50, 40, 40, 30 and 30 per cent. Whether you receive three months or six depends on your qualifying contributions and whether this is a first or a subsequent claim.
Two things follow from that shape.
First, the money is front-loaded deliberately, because the first month after a job loss is when fixed costs hit hardest and savings have not adjusted. Second, it is designed to become uncomfortable. By month four you are on 40 per cent of an assumed wage that is itself capped at a RM6,000 ceiling. That is a nudge, and it is meant to be.
Which is also why EBSA exists. Return to work early within your allowance period and you get a 25 per cent incentive rather than simply losing the remaining months — so taking a job in month two is not financially punished.
Two things people get wrong
Treating it as severance. EIS is separate from any termination benefits your employer owes you under your contract or the Employment Act. One does not replace the other.
Skipping the re-employment side. The counselling, training and job-matching components are the part of the scheme with the longest tail. The allowance runs out in six months at most; a funded certification does not.
If your job loss involved a workplace injury rather than a redundancy, that is a different scheme entirely — see how to claim SOCSO for a work or commuting accident.
FAQ
How long do I have to apply for EIS after losing my job?
Sixty days from the date you lose your employment. Applying late puts the claim at risk, so file in the first week if you can.
Can I claim EIS if I resigned?
No. Voluntary resignation is an ineligible cause, as are termination for misconduct and mandatory retirement. VSS and MSS separations, however, are eligible.
How much does EIS pay?
The Job Search Allowance is a stepped percentage of your assumed monthly wage — 80 per cent in the first month, then 50, 40, 40, 30 and 30 — for three to six months depending on your contribution history.
Does EIS replace my termination benefits?
No. EIS is a PERKESO scheme and is separate from any severance or termination benefits your employer owes you.
What is the Early Re-Employment Allowance?
EBSA is a 25 per cent incentive paid to claimants who return to work early during their Job Search Allowance period.
This is general information on a government scheme, not legal or financial advice. Confirm details with PERKESO for your own circumstances.
