5th November 2025 - 8 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, you’ve been contributing to EIS since 2018, regardless of how much you earn. There is no salary limit on who is covered. Instead, contributions and benefits are calculated on an insured wage that is capped at RM6,000 per month, a ceiling that was raised from RM5,000 on 1 October 2024. If you earn more than RM6,000, you still contribute and you can still claim, but your benefits are worked out as if you earned RM6,000.
Both you and your employer contribute 0.2% of your monthly salary each to the EIS fund, based on PERKESO’s wage brackets. For someone earning RM3,000, that’s about 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, formally called the Job Search Allowance (JSA), is based on your Assumed Monthly Wage (AMW). This is not your exact take-home salary. PERKESO places your average monthly wage into a bracket under its EIS wage schedule, and the midpoint of that bracket becomes your AMW, capped at RM6,000. In practice, your AMW usually sits within about RM50 of your actual salary unless you earn above the ceiling.
PERKESO then pays a fixed percentage of your AMW that steps down each month: 80% in the first month, 50% in the second, 40% in the third and fourth months, and 30% in the fifth and sixth months. There is no fixed ringgit cap on the monthly payment itself. If your AMW is RM6,000, your first month’s JSA would be RM4,800.
How many months you receive depends on your contribution record. 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.
Worked example: Sarah earned RM3,500 per month and contributed to EIS for 4 years before being retrenched, which entitles her to 5 months of payments. Her AMW under PERKESO’s wage schedule is RM3,550. Her JSA works out to RM2,840 in the first month (80%), RM1,775 in the second (50%), RM1,420 in each of the third and fourth months (40%), and RM1,065 in the fifth month (30%), for a total of RM8,520.
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. On the flip side, returning to work early makes you eligible for the Early Re-Employment Allowance, a one-off incentive worth 25% of your remaining unclaimed JSA.
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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As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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Comments (4)
Hi, I think there is some inaccurate information in this article. You mentioned that workers earning less than RM5,000 per month are qualified for EIS, but this statement is incorrect. EIS is not limited to employees earning below RM5,000 per month. Employees earning above RM5,000 may also be covered under the scheme, subject to the applicable eligibility requirements. The insured/claimed salary used for EIS calculations is capped at RM6,000, meaning benefits are calculated based on a maximum insured wage of RM6,000, rather than limiting eligibility to employees earning below RM5,000. One more correction regarding the JSA calculation: the benefit amount… Read more »
Hi there, thank you for pointing this out, and for explaining it so clearly! You’re right on both counts. EIS isn’t limited to employees earning below RM5,000; that figure was the old insured wage ceiling (now RM6,000), which caps how benefits are calculated rather than who qualifies. I’ve rewritten the JSA section based on the Assumed Monthly Wage and the official payment rates, and corrected the worked example, so there’s no more mention of a RM2,000 cap.
The article has been updated, and we’ve cross-checked the amended sections against PERKESO’s official EIS guidelines. Thanks again!
So after 6 months if you still don’t have a job, what happens
We have been contributing SOCSO all our lives so shouldn’t the compensation be the same too
Hi, thanks for your question! Once your EIS benefit period ends (up to 6 months maximum), the monthly payments stop. There’s no extension beyond that. You can still access PERKESO’s job placement services and training programmes through MYFutureJobs during and after your benefit period though, which can help with reskilling or finding new work. On the contribution point, both you and your employer contribute just 0.2% each of your salary to EIS, which is a pooled insurance fund, so the total going in is quite small. Because it’s insurance-based, the payout is calculated as a percentage of your salary (80%… Read more »