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The Employment Insurance System (EIS) is a financial scheme implemented by PERKESO in January 2018 to ease financial burdens of employees who lost their job until they find new employment. All Malaysians and permanent resident employees aged from 18 to 60 years old are required to make contributions to be covered by the EIS scheme.
Employers and employees are required to contribute 0.2% of an employee’s salary each. Furthermore, the maximum eligible monthly salary is capped at RM6,000.
|
No |
Amount of Wages (RM) | Employer Contribution (RM) | Employee Contribution (RM) | Total Contribution (RM) |
| 1 | 1,000 – 1,100 | 2.10 | 2.10 |
4.20 |
|
2 |
2,000 – 2,100 | 4.10 | 4.10 | 8.20 |
|
3 |
3,000 – 3,100 |
6.10 | 6.10 |
12.20 |
| 4 | 3,900 – 4,000 | 7.90 | 7.90 |
15.80 |
|
5 |
4,900 – 5,000 | 9.90 | 9.90 |
19.80 |
| 6 | When wages > 5,000 | 9.90 | 9.90 |
19.80 |
As of 2025, the EIS benefits for retrenched workers remain capped at 6 months, with the original payout structure still in effect:
|
Month |
Percentage |
|
First month |
80% |
|
Second month |
50% |
|
Third month |
40% |
| Fourth month |
40% |
| Fifth month |
30% |
| Sixth month |
30% |
EIS Covers These Situations of Loss of Employment
EIS will cover employees who lost their employment due to:
Not eligible to claim for EIS Scheme if
The dismissal is due to misconduct by the employee, voluntary resignation, retirement or the expiry of a fixed-term contract.
Claims Being Allowed for Additional Financial Benefits
Updated as 12.8.2025
