Calls for EIS Bill to be reviewed
KUCHING: The recent call by Sarawak Business Federation (SBF) for major changes to be made to the Employment Insurance Scheme ( EIS) Bill has the support of some individuals here.
Former president of the Federation of Kuching, Samarahan and Serian Divisions Chinese Associations, Dr Chou Chii Ming, hailed the proposal by SBF as “simple and less of a financial burden” to the people.
“I support the proposal of SBF as it is simple and less of a financial burden for employers and employees. Yes, (the government should amend the Bill),” he said yesterday when prompted for comments on the SBF having proposed a contribution of RM1 each per month by employers, employees and the government.
The SBF came up with the formula last Thursday because the EIS Bill proposed a collection of one per cent of monthly wages ( 0.5 per cent from employers and 0.5 per cent from employees) for life until three years before retirement.
Sarawak United Peoples’ Party ( SUPP) Youth Central publicity secretary Milton Foo said he supported the scheme proposed by the Human Resources Ministry, but was against the contribution formula.
“The EIS calculation is by the government, which is a collection of one per cent of monthly wages for life until three years before retirement.
“I support the scheme but am against the calculation,” he said.
Foo asserted that the calculation must be fair to both employees and employers, while the government must be transparent and allow access to the actuarial derivation to the amount.
“The collection must not be perceived as a tax burden to both employees and employers. The government must let the public know how the figure (of one per cent, 0.5 per cent each from employees and employers) was derived and make it justifiable,” he said.
He added that the government must take people’s hardship into consideration before implementing any policy.
For Bong Lian Huan, the one per cent contribution is not excessively high for small-time businesses, but he fears the figure will go up to billions of ringgit given that there are 6.8 million workers in the private sector in the country.
He indicated that the contribution amount of billions of ringgit a year would be unreasonably high and thus ought to be reviewed.
“When the government collects an excessive amount from the EIS contributions, it means the same amount will be removed from the market, and this will not help stimulate commercial activities,” he said.
Bong, who is an entrepreneur and councillor of Kuching South City Council, said SBF had put forward many good points.
“It is reasonable for SBF to suggest that the government should also be a contributor to EIS together with employers and employees.”
He believed that SBF’s proposal should sufficiently cover the expanded maximum benefit of RM130 million or the past actual experience of only RM65 million a year (of retrenchment benefits that were left unpaid by errant employers).
He added that the fund should also be capped at a certain amount.
“In short, I’m not against the EIS itself. After all, EIS provides a more comprehensive protection to employees but nevertheless, the scheme must be planned carefully to ensure a win-win situation for all,” added Bong.
An employee, who wished to be known as Laura, said she could not bring herself to support the proposed EIS because too little was known about the scheme.
“The government has provided no details on the proposed scheme. One thing about insurance policies we buy is that we get back the fund when the policy matures. What about EIS?
“Is it just me or does everyone else feel that they are being kept in the dark about the objective of this EIS? What is the whole purpose of having this EIS?” she wondered.
She said she could understand that the government had the obligation to protect employees from errant employers.
“If this is the case, shouldn’t the government be amending the existing labour or other relevant laws to compel employers to abide by the regulations?
“Is it fair for all of us to pay for what errant employers have done? Isn’t it the government’s job to make sure employers comply with all regulations?
“I’m afraid I cannot comprehend the meaning of this EIS especially when times are bad, with more and more people struggling to make ends meet,” pointed out Laura.
She hoped that the government would seriously consider striking out the EIS Bill and come up with some other mechanism to help protect employees.
On Aug 1, Human Resources Minister Datuk Seri Richard Riot Jaem tabled the EIS Bill for the first reading in Parliament.
The proposed EIS aims at helping provide financial assistance to private sector workers who lose their jobs until they find new employment.
Retrenched workers will also be given help to search for new jobs, career counselling and training under the proposed scheme.
Employers who are found guilty of violating the rule can be punished with a jail term of up to two years and a maximum fine of RM10,000.