Losing your job is stressful enough without having to worry about how you are going to cover rent and other bills while searching for another one.
For eligible workers in Malaysia, PERKESO’s Employment Insurance System, also known as EIS, SIP or LINDUNG Kerjaya, provides temporary financial assistance and employment support following an involuntary loss of employment.
Here is what you need to know before submitting a claim.
What EIS actually is
The Employment Insurance System is a social security scheme managed by PERKESO that came into effect in January 2018.
If you are covered, both you and your employer contribute to the scheme every month. The total EIS contribution rate is 0.4% of your assumed monthly salary, with 0.2% paid by your employer and another 0.2% deducted from your salary.
Since October 1, 2024, the wage ceiling used for PERKESO contributions has been increased from RM5,000 to RM6,000 per month.
The scheme does more than provide financial assistance. It also connects unemployed workers with job matching, career counselling and approved training programmes.
Step 1: Check whether you are covered
According to PERKESO’s EIS eligibility requirements, the scheme generally covers employees who are:
- Malaysian citizens or permanent residents
- Between 18 and 60 years old
- Working in the private sector
- Employed under a contract of service
Employees aged 57 and above who had never contributed to EIS before turning 57 are generally exempt.
Civil servants, self-employed workers and employees of local authorities and certain statutory bodies are generally not covered under EIS.
Domestic workers have separate coverage rules. PERKESO’s current domestic worker protection page states that eligible local domestic workers are covered under EIS, while foreign domestic workers are not covered under the scheme.
Step 2: Check whether your situation qualifies as a loss of employment
EIS is mainly intended for workers who lose their employment involuntarily.
According to PERKESO’s list of qualifying situations, a loss of employment may include:
- Normal retrenchment or redundancy
- A Voluntary Separation Scheme or Mutual Separation Scheme
- Company closure or bankruptcy
- Business closure caused by a natural disaster
- Constructive dismissal
- Resignation due to sexual harassment or threats at the workplace
- Resignation after being ordered to perform dangerous duties outside the employee’s job scope
However, the following situations are generally not covered:
- Voluntary resignation without qualifying circumstances
- Dismissal due to employee misconduct
- Retirement
- The natural expiry of a fixed-term contract
- Completion of a project stated in an employment contract
- Unconditional termination agreed upon by the employer and employee
PERKESO will assess the circumstances and decide whether the case legally qualifies as a loss of employment. Applicants whose claims depend on special circumstances should keep relevant records, correspondence and other evidence supporting their case.
Step 3: Check your contribution record
You must satisfy PERKESO’s Contribution Qualifying Conditions before receiving EIS benefits.
For a first claim, the number of months you can receive the Job Search Allowance depends on the contributions made during the 24 consecutive months immediately before your loss of employment.
Under the Employment Insurance System Act 2017, the first-claim conditions are:
- 12 to 15 contributions: Up to 3 months
- 16 to 19 contributions: Up to 4 months
- 20 to 23 contributions: Up to 5 months
- 24 contributions: Up to 6 months
For example, someone with 14 qualifying monthly contributions may receive up to three months of allowance.
Different and generally stricter contribution conditions apply to second and subsequent claims. Contributions already used to support an approved claim may not be reused for another claim.
Step 4: Prepare your supporting documents
According to PERKESO’s EIS application FAQ, applicants should generally prepare:
- A copy of their MyKad
- Proof of loss of employment, such as a retrenchment or termination letter
- A copy of their bank account information
- Payslips for the final six months of employment
Additional supporting documents may be requested depending on the type of benefit and the circumstances surrounding the job loss.
The termination or separation letter should clearly explain how and when the employment ended. A letter that simply says the employee resigned may make it harder to establish that the job loss qualifies under EIS.
Step 5: Apply within 60 days
You must submit your application within 60 days from the date of your loss of employment.
Under the Employment Insurance System Act, PERKESO may reject a claim submitted after this period.
You can submit your application online through the official LINDUNG Kerjaya Benefits Portal.
You can also visit your nearest PERKESO office if you need help submitting the application or verifying your documents.
Applicants must also register with MYFutureJobs as part of the scheme’s job matching and re-employment programme.
Step 6: Wait for PERKESO’s decision
PERKESO will examine your contribution history, the circumstances surrounding your job loss and the documents you submitted.
According to PERKESO’s Client Charter, the organisation aims to process and pay the Job Search Allowance to qualified applicants within 14 days after receiving all completed documents.
This should be treated as a service target rather than a guaranteed approval period. Applications may be delayed if documents are incomplete or PERKESO needs more information about the reason for the job loss.
A seven-day waiting period applies after a claim is approved before the Job Search Allowance becomes payable.
How much can you receive?
The Job Search Allowance is calculated using PERKESO’s assumed monthly wage and is paid at progressively lower rates:
- First month: 80%
- Second month: 50%
- Third month: 40%
- Fourth month: 40%
- Fifth month: 30%
- Sixth month: 30%
Not everyone will receive all six months of payments. The duration depends on the applicant’s contribution record.
The percentages are applied to PERKESO’s assumed monthly wage rather than simply being calculated from the employee’s final take-home pay.
What you must do while receiving benefits
EIS is not a passive monthly payout. Recipients must participate in PERKESO’s re-employment programme while receiving assistance.
This may include:
- Registering and remaining active on MYFutureJobs
- Following an employment commitment plan
- Submitting monthly job-search reports
- Attending job matching, counselling or placement activities
- Remaining available and actively looking for work
- Informing PERKESO after accepting a new job
Employment Services Officers may assist recipients with job searching, career advice, job matching, placement and vocational training.
Failing to participate or providing false information may affect the payment of benefits.
You may receive an allowance for finding work early
Recipients who return to work before completing their Job Search Allowance period may qualify for the Early Re-employment Allowance.
This is generally paid as a lump sum equivalent to 25% of the remaining Job Search Allowance that has not yet been paid.
Recipients should notify PERKESO after accepting and reporting for a new job so that their remaining benefits can be assessed correctly.
What happens if your claim is rejected?
Read the rejection notice carefully to understand why the application was unsuccessful.
You may contact PERKESO or visit a PERKESO office to ask whether additional documents or clarification can be submitted.
For a formal dispute, an application may be filed with the Social Security Appellate Board. Under the Employment Insurance System Act 2017, this must generally be done within 60 days from the date the applicant receives PERKESO’s written decision.
Therefore, applicants should not assume that there is a general 30-day appeal process through MYFutureJobs.
The bottom line
If you lose your job through no fault of your own, EIS can provide temporary financial assistance and employment support while you look for another position.
The most important steps are to obtain clear proof of how your employment ended, apply through the LINDUNG Kerjaya Benefits Portal within 60 days, submit complete documents and remain actively involved in PERKESO’s re-employment programme.
As eligibility depends on each applicant’s contribution history and circumstances, workers should check the latest details on PERKESO’s official EIS page before submitting their claim.
