The Social Security Organisation (SOCSO) is a statutory body in Malaysia that provides social security protection to employees in the event of work-related accidents and occupational diseases. In 2018, SOCSO introduced the Employment Insurance Scheme (EIS) to provide temporary financial assistance to eligible employees who have lost their jobs due to retrenchment or closure of their employer's business. The article begins by providing a background on the Employment Insurance Scheme, highlighting the need for such a scheme in Malaysia. The paper then outlines the benefits of the EIS, which include job search allowance, early re-employment allowance, and training allowance. The job search allowance is provided to eligible employees who are actively seeking new job opportunities, while the early re-employment allowance is provided to eligible employees who have found new employment opportunities but have yet to receive their first salary. The training allowance is provided to eligible employees who undergo training to enhance their employability. The paper then identifies the eligibility criteria for the EIS, which includes Malaysian citizens or permanent residents who have contributed to the scheme for a minimum of 6 months before the date of retrenchment or closure of their employer's business. The paper highlights that employees must not have been terminated for misconduct or voluntarily resigned from their job to be eligible for the scheme. The paper also notes that employees must register with SOCSO within 60 days of the date of retrenchment or closure of their employer's business and actively seek new job opportunities during the period of assistance to remain eligible for the scheme.
The paper provides insights into the implementation of the Employment Insurance Scheme, which is managed by SOCSO and is funded by contributions from employers and employees. The paper highlights that the EIS is a voluntary scheme for employers, but contributions are mandatory for employees earning less than RM4,000 per month. The article concludes by emphasizing the importance of the Employment Insurance Scheme in providing a safety net for employees who are facing job loss due to retrenchment or closure of their employer's business. The EIS provides temporary financial assistance to eligible employees while they search for new job opportunities and offers training and job search support to enhance their employability. The article suggests that the EIS can contribute to the overall well-being of employees and the economy by providing support during a period of job loss.
This journal article provides a comprehensive overview of SOCSO's Employment Insurance Scheme, highlighting its benefits, eligibility criteria, and implementation. The paper emphasizes the importance of the scheme in providing a safety net for employees who are facing job loss and suggests that the EIS can contribute to the overall well-being of employees and the economy.
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