Employee Assistance Programs

Malaysia’s retrenched workers get new employment insurance system

The authority that monitors employment insurance systems in Malaysia kickstarted 2019 by initiating the Employment Insurance System with a full set of all the benefits.

A worker who has been retrenched will get a fixed amount of RM 600 per month for three months while they look for a new job. The Social Security Organization (Socso) received requests for interim relief from about 23,185 unemployment vacancies. The agency provided about RM 16.88 million in interim benefits to workers who lost their jobs and were eligible to get this interim relief.

Those employees who lost their jobs but performed work that would count towards 11 months of working hours are eligible to get full SIP benefits including Elaun Mencari Pekerjaan (EMP), Elaun Bekerja Semula Awal (EBSA) and Elaun Pendapatan Berkurangan (EPB).

Elaun Bekerja Semula Awal -- an incentive paid to those who have been successful under the EMP program to get new jobs early. Elaun Pendapatan Berkurangan or the Reduced Income Allowance is a financial allowance for those workers who are performing multiple jobs but have lost at least one due to retrenchment.

A new Employment Insurance System will be put in place in order to remove and replace the Employment Insurance Interim System that existed until Dec. 31, 2018.

When it comes to the employees who are undergoing skills training according to the recommendation of Socso’s Employment Services Officer, a training fee will be given to each of them. This fee is directly paid to the organization that provides training. Selected applicants can take advantage of vocational training for a period of not more than six months. There is a cap of RM 4,000 for the training cost. This allowance acts as an incentive to motivate participants to attend all the training sessions.

Additionally, the Elaun Bekerja Semula Awal is an incentive awarded to those beneficiaries on EMP who find work early.

This program is an effort to make sure that the ones who have lost jobs get services such as employment placement programs, help with job search, counseling services, interviews, and training.

Providing training and assistance to those who have lost their jobs is crucial. However, understanding the impact on those who are still working in the same organizations is essential. Many times massive job cuts in a particular industry contribute to bringing down the morale of those left behind. New employment insurance systems such as the one in Malaysia is more likely to make the transition easier for these workers.

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