PROPOSED amendments to the Employment Insurance System Act 2017 [Act 800] were presented for a first reading in the Dewan Rakyat by Minister of Human Resources Steven Sim, with the aim of fortifying Malaysia’s social safety net for workers.
The latest amendments seek to improve protections for employees, particularly during periods of unemployment and career transitions, including higher job search allowances, extended benefit durations, and reskilling incentives.
Malaysian Employers Federation (MEF) President Datuk Dr Syed Hussain Syed Husman said the improvements demonstrate the government’s ongoing commitment to worker welfare while fostering a more resilient and adaptable workforce.
“The enhancements to the benefits under the Employment Insurance System (EIS) are timely and progressive.
“By providing stronger income support and more effective reemployment assistance, the system helps workers recover more quickly from job loss and reduces the social and economic disruptions caused by unemployment,” he said.
He added that the amendments align with broader efforts to strengthen the national social protection landscape, particularly following the introduction of 24-hour social security coverage under the Social Security Organisation (PERKESO), which extends protection to workers outside of standard working hours.
“MEF supports the improvement of EIS benefits as it complements other reforms aimed at enhancing workforce protection and employability,” he said, noting that the move would boost confidence among both employees and employers and support a more dynamic labour market.
Syed Hussain also emphasised the importance of maintaining a financially sustainable EIS to avoid placing an additional burden on employers.
“While we improve benefits for workers, it is equally important to ensure EIS remains financially resilient and does not undermine business competitiveness,” he said.
Introduced in 2018 and managed by PERKESO, the EIS provides income replacement and employment services to Malaysian workers who lose their jobs.
With the proposed amendments, Act 800 is expected to offer stronger, fairer, and more forward-looking protection in line with the evolving needs of the nation’s labour market. - November 7, 2025
