Key takeaways
- EIS contributions in Malaysia are 0.4% of salary, split 0.2% employee and 0.2% employer, on a salary ceiling of RM6,000 a month.
- You need at least 12 monthly EIS contributions in the 24 months before your job loss, and you must apply within 60 days.
- The Job Search Allowance pays 80%, 50%, 40%, 40%, 30% and 30% of your assumed monthly wage, for 3 to 6 months.
- Voluntary resignation, contract expiry, retirement and dismissal for misconduct do not qualify for EIS.
- For job loss from 1 October 2026, the early re-employment allowance rises to 50% of unpaid allowance and training fees to RM7,000.
- EIS does not pay medical bills, and company group medical cover usually ends when you leave, so check your own medical card.
What is EIS PERKESO, and who pays for it?
EIS stands for the Employment Insurance System, called SIP (Sistem Insurans Pekerjaan) in Malay and now branded LINDUNG KERJAYA by PERKESO. It started on 1 January 2018 under the Employment Insurance System Act 2017 (Act 800). Its job is simple: if you lose your job through no fault of your own, it replaces part of your salary for a few months and helps you find work again.
That small "EIS" line on your payslip is your share. According to PERKESO's contributions page, these are the rules:
| Item | Rule (PERKESO) |
|---|---|
| Total contribution | 0.4% of assumed monthly salary |
| Employee share | 0.2%, deducted from salary |
| Employer share | 0.2%, paid by the company |
| Salary ceiling | RM6,000 a month (raised from RM5,000 on 1 October 2024) |
| Who must contribute | Private sector employees aged 18 to 60 |
| Exempt | Government employees, domestic workers, the self-employed, and employees aged 57 and above with no contributions before 57 |
So on a RM4,000 salary, your EIS deduction is about RM8 a month, and the company pays the same. Even if you earn RM10,000, contributions are calculated as if you earned RM6,000, per PERKESO's contribution rate page. EIS is separate from your normal SOCSO deduction, which covers work accidents and invalidity. I explain that side in my PERKESO (SOCSO) guide.
Who can claim EIS after losing a job, and who cannot?
This is where most people get it wrong. EIS is for involuntary job loss. PERKESO lists three conditions on its LINDUNG KERJAYA page: you apply within 60 days of losing your job, you meet the contribution qualifying conditions, and your job loss counts as "loss of employment" under the Act. The Star's fact check, citing PERKESO, puts the contribution condition at at least 12 monthly contributions in the 24 months before the job loss.
| Usually qualifies | Does not qualify |
|---|---|
| Retrenchment | Resigning on your own |
| VSS or MSS (voluntary or mutual separation scheme) | Fixed-term contract simply ends |
| Business closed or employer bankrupt | Project in your contract is completed |
| Workplace closed by a natural disaster | Retirement |
| Constructive dismissal | Dismissal for misconduct |
| Resigning because of sexual harassment or threats at work | Unconditional termination agreed between you and the employer |
| Resigning after being ordered to do dangerous work outside your job scope |
You must also be able to work, available to work and actively looking for work, and you must register on MYFutureJobs, where PERKESO's employment services officers match you to vacancies.
A common trap: some employers ask staff to "resign" instead of being retrenched. A resignation letter can close the door on EIS. If you are being let go, ask HR to put the real reason (retrenchment, VSS, closure) in writing. Whether a situation counts as constructive dismissal is a legal question; this guide is general information, not legal advice.
How much can I claim from EIS?
The main benefit is the Job Search Allowance (Elaun Mencari Pekerjaan, EMP). PERKESO pays it for 3 to 6 months, depending on your contribution record, and it steps down each month. The rates below are from The Star's QuickCheck on 2 October 2026, which cites PERKESO, and are based on your assumed monthly wage up to RM6,000.
| Month | Rate | Example: RM5,000 salary | Example: RM6,000 or more |
|---|---|---|---|
| 1 | 80% | RM4,000 | RM4,800 |
| 2 | 50% | RM2,500 | RM3,000 |
| 3 | 40% | RM2,000 | RM2,400 |
| 4 | 40% | RM2,000 | RM2,400 |
| 5 | 30% | RM1,500 | RM1,800 |
| 6 | 30% | RM1,500 | RM1,800 |
| Total (if all 6 months) | RM13,500 | RM16,200 |
Example assumptions: full 6 months of entitlement and no new job during that time. If your record only qualifies you for 3 or 4 months, you receive only those months. The RM6,000 column is my own calculation using the same rates and the RM6,000 ceiling.
Other EIS benefits listed by PERKESO:
- Reduced Income Allowance (EPB): if you had two or more jobs and lost one, same rates and duration as EMP, paid in a lump sum.
- Early Re-employment Allowance (EBSA): a lump sum if you start a new job while still receiving EMP.
- Training Fee and Training Allowance: PERKESO pays for approved skills training and a daily allowance while you attend.
- Mobility Allowance (new): a one-off payment if your new job is more than 100 km from home.
- Dependants' Allowance: paid to one eligible family member if the insured person dies, is in a coma or is mentally incapacitated with benefits still unpaid.
Look at the totals again: even the maximum is about three months of a RM6,000 salary, spread over half a year. EIS is a cushion, not a replacement income. Keep that in mind when you think about your family's protection.
How to apply for EIS on the LINDUNG Kerjaya portal, step by step
- Get your termination letter. Make sure it states the reason (retrenchment, VSS, closure). Ask HR for your last payslips too.
- Apply within 60 days of your last working day on the LINDUNG Kerjaya portal, or at any PERKESO counter. Do not wait until you are "settled": day 61 is too late.
- Prepare the documents The Star lists: identity card (MyKad), termination letter, bank account details and proof of salary.
- Register on MYFutureJobs and keep your profile active. PERKESO uses it to match you with jobs.
- Show you are job hunting every month. Payments continue only while you are actively looking for work, so keep records of applications and interviews.
- Talk to your employment services officer about training if you want to switch fields. Training must be approved first and you must attend all sessions to receive the allowance.
Common mistakes I see: people resign voluntarily and later find they cannot claim; they wait more than 60 days; their employer never paid EIS for them (check your payslips or ask PERKESO); or they stop updating MYFutureJobs and the payments stop. If you are unsure about your record, PERKESO's hotline is 1-300-22-8000.
What changed for EIS from 1 October 2026?
PERKESO improved several EIS benefits for job loss on or after 1 October 2026 only. If you lost your job before that date, the old rates still apply.
| Benefit | Before | Job loss from 1 Oct 2026 |
|---|---|---|
| Early Re-employment Allowance (EBSA) | 25% of unpaid Job Search Allowance | 50% of unpaid Job Search Allowance |
| Training Fee (FL) | Up to RM4,000 | Up to RM7,000 |
| Training Allowance (EL) | RM10 to RM20 a day, by previous salary | Flat RM30 a day |
| Mobility Allowance (EBM) | Not available | One-off RM1,000 if the new job is more than 100 km from home |
Sources: PERKESO's LINDUNG KERJAYA page for the rates and The Star for the RM1,000 mobility figure. The mobility claim needs your offer letter or new contract and confirmation from the new employer.
Worked example (illustration only): say you earned RM5,000, qualified for all 6 months, and found a new job after receiving months 1 and 2 (RM4,000 + RM2,500). The unpaid balance is RM7,000. Under the new rule, EBSA pays 50% of that, a lump sum of RM3,500, compared with RM1,750 under the old 25% rate. Finding work early now pays better.
What EIS does not cover: your medical card, family and loans
EIS replaces part of your salary for up to 6 months. It does not pay hospital bills, it does not pay your housing loan if something happens to you, and it ends whether or not you have found work. When I review policies for people who have just lost a job, these are the gaps I check first:
- Company medical cover usually stops. Most group hospitalisation and life cover provided by an employer ends when you leave. Ask HR the exact end date. If you have a health condition, a gap in cover matters, because a new personal medical card may exclude pre-existing illnesses.
- Keep your personal policies alive. If money is tight, talk to your agent before you stop paying. There may be ways to adjust cover rather than lose it, and restarting later can mean new health checks and higher age-based premiums.
- Your home loan does not pause. If you have MLTA or MRTA, check what it pays and when. It usually pays on death or total disability, not on job loss.
- Your family still depends on your income. EIS stops after a few months; life cover is what protects your family if the worst happens.
If you have your own medical card, this is the time to make sure it continues. You can also ask me for a free policy review so you know exactly what you still have after leaving your job.
Lost your job or worried about it? What to do next
First, claim what is yours. Apply for EIS within 60 days, keep your MYFutureJobs profile active, and use the training benefit if you want to change direction. It is money you and your employer have already paid for.
Then look at your protection with fresh eyes. I am a life planning advisor in Kuala Lumpur and Selangor, and I speak Mandarin, English and Cantonese. Many of the families I help in Seri Kembangan, Serdang, Puchong and Cheras come to me after a change like this, simply to understand what still covers them.
- Send me a photo of your policy pages and I will tell you what your medical card, life and loan cover still do once your company cover ends.
- If premiums are a worry right now, we can talk about options before anything lapses.
- If you are self-employed now, I can explain the PERKESO schemes that still apply in my SOCSO guide.
No hard selling. Ask your question on WhatsApp and decide in your own time.