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Socso targets nearly RM500m EIS collection this year

A contribution of RM479.5 million is expected to be collected through the Employment Insurance Scheme (EIS) implemented this year, from 6.6 million workers and 430,000 employers who have registered.      

EIS chief officer, Mohd Sahar Darusman said this was based on the monthly contribution of 0.2 per cent of the worker’s salary to the Social Security Organisation (Socso), the fund's governing body, respectively by the workers and employers.

“In respect of entitlement to the interim benefit, workers who lose their jobs are eligible to receive the benefit in the form of a cash allowance of RM600 per month for a maximum period of three months under the EIS.

"As of yesterday, Socso has received 175 applications for the EIS interim benefit from individuals who have lost their jobs this year since the EIS came into force on Jan 1,” he told reporters after the EIS briefing with the hospitality industry, here, today.

Mohd Sahar said employers who failed to comply with the EIS could be subjected to stern action, including a compound or a fine of RM10,000 or two years’ jail.

EIS aims to help workers who lose their jobs to receive temporary financial assistance and find a new job or to obtain training.

Among the other benefits to contributors are job search allowance, early re-employment allowance, training allowance and reduced income allowance (for employees who have more than one employer).

Those who are laid off, those undergoing voluntary or mandatory separation schemes, and those who resign due to certain factors like natural disasters, riots, fires, gas leaks, company gone bankrupt and business closures are also eligible under the job-loss coverage system.

Those who stop work due to downsizing of operations, breach of terms or conditions of the contract by the employer, ordered to perform work outside the scope which could endanger their safety and health, as well as resignation due to intimidation to self or family, or due to sexual harassment are also eligible to benefit from the scheme.

The EIS Bill was approved by the Senate in December last year.

- Bernama

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