Retrenched EIS contributors can claim up to 90% salary by February

The support will be given up to a 6-month period, gradually reducing towards the end of the duration, based on the benefit schedule


LAID-OFF employees from Employment Insurance Scheme (EIS) registered firms could claim up to 90% of their last drawn monthly salary, should they get retrenched from February next year.

Tan Sri Dr Aseh Che Mat

Aseh says Socso has only collected RM36.8m from eIs since it came into effect in January this year (Pic: TMRpic)

The Social Security Organisation (Socso) chairman Tan Sri Dr Aseh Che Mat said the employees’ contributions will only reach maturity stage by next January.

“As such, these employees will be benefitting from the matured package only by February next year.

“Contributors who are retrenched within this year will be provided with interim benefits,” he told reporters in Petaling Jaya yesterday.

He said Socso will provide the monetary support up to 90% of salary to the laid-off workers in the first month of retrenchment.

The support, he said, will be given up to a six-month period — which will be gradually reduced towards the end of the duration — based on the benefit schedule.

The agency will also provide supports to the retrenched workers with reskilling and upskilling training during the period.

“But, should they manage to secure jobs within the period, we will still pay the remaining balance entitled to them,” Aseh added.

Currently, Socso only provides interim benefits to the laid-off contributors — funded by the government as the EIS contributions fund is still in its infancy stage.

EIS law was passed by the Parliament last December — with the objective to assist retrenched private sector workers to find new job.

Both employee and employer are obliged to contribute 0.2% of their monthly wage bill under the schemes.

The collection will be derived from 6.6 million workers and 430,000 Socso-registered employers nationwide.

Currently, Aseh said Socso had only collected RM36.8 million from EIS since it came into effect in January this year.

The collection was from 292,250 employers nationwide.

Until the contribution maturity stage, current retrenched employees can only claim interim benefits of RM600 for three months.

Aseh said currently, the regulator body had received 3,068 EIS payment applications, with 1,650 applicants having received the payments amounting to RM960,000.

The total EIS interim benefits fund allocation is RM112 million — which was funded by the government in order to support the premature period of the scheme.