Bill To Amend Employment Insurance System Act Tabled For First Reading

KUALA LUMPUR, Nov 4 (Bernama) -- Human Resource Minister Steven Sim today tabled for first reading in the Dewan Rakyat the Employment Insurance System (Amendment) Bill 2025, which seeks to strengthen the country’s social protection framework and expand employment services to benefit more Malaysians.

He said the second reading will be tabled during the current sitting.

The Human Resource Ministry said the bill seeks to enhance benefits for Social Security Organisation (PERKESO) contributors who lose their jobs.

It also aims to promote labour mobility, improve PERKESO’s operational efficiency in implementing re-employment programmes, and strengthen the governance of the Employment Insurance System (EIS).

“Through these amendments, several improvements have been introduced, including higher existing benefits and a new benefit known as the mobility assistance allowance (EBM). Contributors who lose their jobs will be entitled to protection and training support worth up to RM25,000,” it said in a statement.

The ministry added that under the proposed amendments, contributors will be eligible for a one-off payment of RM1,000 under the EBM if they secure employment more than 100 kilometres from their home.

In addition, the early re-employment allowance will be increased to 50 per cent of the remaining unpaid balance of the job search allowance, compared with 25 per cent previously.

The training allowance will also be raised to RM30 per day from RM10-RM20 per day, while the training fee to RM7,000 from RM4,000.

The ministry said the proposed amendments are in line with the Cabinet’s decision that the Employment Insurance System Act 2017 (Act 800) be reviewed to ensure it remains dynamic and responsive to current labour market needs.

-- BERNAMA