Decision on workers recruitment system with Indonesia on July 28

We have already used MOS for 14 countries and to remove it for one country is impossible, says minister

by S BIRRUNTHA / TMRpic

INDONESIA will respond to Malaysia’s proposal of integrating the online recruitment system of foreign workers into a single channel on July 28.

Human Resources Minister Datuk Seri M Saravanan said the proposal was a result of discussions between the Human Resources Ministry together with the Home Affairs Ministry and the Indonesian embassy last week.

He said, in principle, all parties agreed to integrate the Maid Online System (MOS) with the One Channel System.

“We have already used MOS for 14 countries and to remove it for one country is impossible.

“Indonesia, on the other hand, said if we use the MOS, they will not know the fate of their citizens and where they go upon entering Malaysia and getting a work permit here,” he said as he wrapped up the debate on the Employment Insurance System (Amendment) Bill 2022 in the Dewan Rakyat today.

Earlier this morning, the amendment to the Employment Insurance System Act 2017 (Act 800) was tabled in the Dewan Rakyat.

Saravanan noted this was in line with last week’s amendment to the Workers’ Social Security Act, which aims to improve social security coverage by increasing benefits received by employees.

He also said the amendment to Act 800 will create a new contribution for the monthly salary range between RM4,000 and RM5,000, thereby improving Social Security Organisation protection by increasing benefits such as Jobseeker’s Allowance, Early Re-employment Allowance and others.

“Currently, if an employee earning more than RM4,000 is eligible to receive Jobseeker’s Allowance under Act 800 for six months, the calculation of the Jobseeker’s Allowance payment for that employee according to the existing salary ceiling amounts to RM10,665.

“However, based on the calculation of the new salary ceiling, the employee will receive RM13,365. In this regard, there is a 25.3% increase in the new salary ceiling,” he said.

Additionally, the Bill proposes three amendments to the existing provisions, involving subsection 16(2) (salary ceiling limit from RM4,000 to RM5,000); Second Schedule Paragraph 2 (rates of the first and second type contributions); and Third Schedule Paragraph 8 (interest rate includes Job Search Allowance, Early Re-employment Allowance rate, Reduced Income Allowance rate, Training Allowance and Training Fee).

The Bill also proposed 10 new details to be included in the Second Schedule of Paragraph 2, to show the new contribution for a monthly salary of RM4,100 up to a monthly salary exceeding RM5,000.

Saravanan said the amendment to the Bill is important because the Employment Insurance System (EIS) can reduce the hardship of individuals losing their jobs.

He added that with guaranteed income when looking for a new job, EIS can reduce stress and social problems and avoid financial difficulties which can cause family conflict.

“The government hopes that the Employment Insurance System (Amendment) Bill 2022 can provide the targeted impact value which is to guarantee the social wellbeing of the recipients of existing and new benefits,” he said.