Incorporate insurance into Socso, no need for new bill — KKCCCI

KOTA KINABALU: The government should consider amending the existing Employees’ Social Security Act 1969 to incorporate the Employment Insurance System (EIS) since the system will be administered by the Social Security Organization (Socso) instead of tabling a new EIS Bill in the Parliament.

Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) president Datuk Michael Lui said doing so would not only improve employees’ welfare under the Employees’ Social Security Act, but also enhance the social security protection scheme.

Lui said there was no need to pass another new EIS Bill that overlaps with Socso.

“We suggest that the government should incorporate EIS into Socso instead.

“We believe it is more appropriate to merge the jobloss coverage scheme with the existing benefits enjoyed by employees under Socso.”

He said the EIS seeks to protect every worker, in which contributions to the Employment Insurance Fund are borne by both the employees and employers.

Based on the 6.8 million private sector employees in Malaysia, Lui said the Employment Insurance Fund was estimated to collect RM1.63 billion annually, which was a massive sum.

“The EIS will increase the burden of employers and employees, and subsequently have a negative impact on our economy,” he said.

Lui added employers and employees both needed time to digest the details pertaining to the EIS Bill that was proposed in the Dewan Rakyat on August 1.

He hoped that the government would engage the relevant organizations for dialogue sessions in order to reach a consensus on this matter.