5th November 2025 - 7 min read
Getting retrenched or laid off is stressful enough without having to figure out confusing paperwork and government processes. The Employment Insurance System (EIS) exists to help Malaysian workers during this transition period, but many people don’t know how to access these benefits or whether they even qualify.
EIS provides monthly cash allowances, job search assistance, and training programmes to help you get back on your feet. If you’ve been contributing to EIS through your monthly payslip deductions, you’re entitled to claim these benefits when you lose your job through no fault of your own.
The Employment Insurance System is managed by PERKESO (Social Security Organisation) and functions as a safety net for workers who lose their jobs. If you’re a Malaysian or permanent resident working in the private sector and earning less than RM5,000 per month, you’ve been contributing to EIS since 2018.
Both you and your employer contribute 0.2% of your monthly salary each to the EIS fund. For someone earning RM3,000, that’s RM6 per month from your salary and another RM6 from your employer.
You can claim EIS benefits if you:
You cannot claim EIS if you:
The “12 months in 24 months” rule means you need at least a year’s worth of contributions, but they don’t have to be continuous. If you worked for 8 months at one company, then 6 months at another within a two-year period, you still qualify.
Your monthly EIS allowance depends on how long you’ve been contributing to the system and your average monthly salary over the past year.
EIS pays between 30% to 80% of your average monthly salary, capped at a maximum of RM2,000 per month. The percentage decreases the longer you’ve been claiming benefits.
If you contributed for less than 3 years, you’ll receive benefits for up to 3 months. For 3 to 5 years, you get up to 5 months. For more than 5 years, you get up to 6 months.
The payment structure starts at 80% of your salary for the first month or two, drops to 50% for the middle months, and ends at 30% for the final months.
Real example: Sarah earned RM3,500 per month and contributed to EIS for 4 years before being retrenched. Her EIS payments over 5 months would total approximately RM9,550, with the first two months paying the maximum RM2,000 cap.
The payments aren’t massive, but they cover basic expenses while you search for your next position. You’ll also get access to job placement services and training programmes through PERKESO’s Employment Services.
You have 60 days from your last day of work to submit your EIS claim. Missing this deadline means forfeiting your benefits.
Required documents:
The termination letter is the most important document. It must clearly state that you were retrenched, made redundant, or dismissed for reasons other than misconduct.
The fastest method is through the MYFutureJobs portal at myfuturejobs.gov.my. Register as a first-time user, fill in your personal details and employment history, upload all required documents, and submit your application.
PERKESO will review your documents within 7 working days. You’ll get an email notification once your claim is approved or if they need additional information.
Visit your nearest PERKESO office with all your original documents and photocopies. The counter staff will help you fill out the EIS claim form and verify your documents on the spot. Find your nearest PERKESO office at www.perkeso.gov.my.
Once PERKESO approves your claim, your first payment typically arrives within 14 days of approval. Subsequent monthly payments are deposited directly into your bank account on the 15th of each month.
You’ll need to prove you’re actively looking for work to continue receiving benefits. Attend job placement sessions at PERKESO Employment Services once per month, log your job search activities on the MYFutureJobs portal, and accept reasonable job offers that match your skills and experience.
PERKESO takes “reasonable job offers” seriously. If you reject a suitable position without good reason, your benefits may be suspended. A reasonable job offer means work that matches your qualifications, pays at least 80% of your previous salary, and is within reasonable travelling distance from your home.
Sometimes EIS claims are rejected due to missing documents, insufficient contribution months, or unclear termination circumstances. Common reasons include termination letters that don’t clearly state the dismissal reason, less than 12 months of contributions, voluntary resignation, or dismissal for misconduct.
If your claim is rejected, you have 30 days from receiving the rejection letter to file an appeal through the same MYFutureJobs portal or at a PERKESO office in person. Provide additional documentation that addresses the rejection reason, a written explanation clarifying your circumstances, and any new evidence supporting your claim.
PERKESO will review your appeal within 30 days and send you a final decision.
You cannot claim EIS if you resigned voluntarily. The system is designed specifically for involuntary job loss, not career changes or personal decisions to leave a job.
There are grey areas, though. If you resigned due to constructive dismissal, serious workplace harassment that your employer failed to address, or unpaid wages for several months, you might have grounds for an EIS claim. You’ll need solid evidence like police reports, written complaints to your employer, or proof of unpaid salary.
Consult PERKESO directly if you’re in this situation, as each case is evaluated individually.
Use this time wisely. Register on all major Malaysian job portals like JobStreet, Hiredly, and LinkedIn. Update your CV and tailor it to the types of roles you’re targeting. You can also take advantage of PERKESO’s training programmes, especially if you’re switching industries or need to update your skills.
Network actively. Many jobs in Malaysia are filled through referrals before they’re even advertised publicly. Consider contract or freelance work while searching for permanent employment; this income won’t affect your EIS benefits as long as you’re still registered as a job seeker.
While you’re managing your immediate money needs during this time, it’s worth reviewing your overall budget. If you have existing debts like credit card balances or personal loans, you might want to explore your options to find better rates or consolidation options that can ease your monthly expenses.
Don’t treat EIS as a holiday fund. The system tracks your job search activities, and you can lose benefits if you’re not genuinely looking for work.
If you find a new job before your benefit period ends, you must inform PERKESO immediately. Continuing to claim benefits after gaining employment is considered fraud and can result in having to repay the money plus penalties.
Your remaining benefit months don’t carry forward. Each new claim starts fresh if you lose another job in the future.
If you’re confused about any part of the EIS process, PERKESO’s customer service line (1-300-22-8000) operates during office hours and can answer specific questions about your case. For the most up-to-date information, you can also visit the official PERKESO website at www.perkeso.gov.my
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