The Employment Insurance Scheme (EIS) is a social security scheme established by the Social Security Organisation (PERKESO) under the Employment Insurance System Act 2017.
Its purpose is to assist workers who lose their jobs by providing temporary financial assistance and support for re-employment.
Eligible Causes of Job Loss
- Normal termination of employment
- Voluntary Separation Scheme (VSS) / Mutual Separation Scheme (MSS)
- Closure of workplace due to natural disaster
- Business closure or cessation of operations
- Constructive dismissal
Ineligible Causes of Job Loss
- Termination due to employee misconduct
- Voluntary resignation
- Mandatory retirement
Types of EIS Benefits
- Job Search Allowance (EMP)
Eligible recipients receive an allowance for 3–6 months. - Reduced Income Allowance (EPB)
Income replacement for individuals with more than one employer who lost one or more jobs. - Early Re-Employment Allowance (EBSA)
A 25% incentive for employees who return to work earlier during their EMP period. - Training Allowance (EL)
A daily allowance of RM10–RM20 for retraining. - Training Fee (FL)
Training fee coverage paid directly to training providers, up to a maximum of RM4,000.
Updated date: 10/10/2025
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