Ku­lasegaran: PH govern­ment to re­view, but not re­peal, EIS

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KUCH­ING: A re­view on the Em­ploy­ment In­surance Sys­tem ( EIS) will be car­ried out rather than hav­ing the pol­icy re­pealed.

Hu­man Re­sources Min­is­ter M Ku­lasegaran said the Pakatan Hara­pan fed­eral govern­ment will come up with the best pol­icy to keep the EIS go­ing.

In an ex­clu­sive in­ter­view yes­ter­day, he said the EIS aimed to pro­tect the in­ter­est of in­di­vid­u­als who had un­der­gone re­trench­ment.

“Even though this EIS was in­tro­duced and im­ple­mented by the pre­vi­ous govern­ment, the PH govern­ment has no in­tent to re­peal it, and the con­tri­bu­tion rate will re­main at 0.2 per cent,” he told The Bor­neo Post’s sis­ter pa­per Ori­en­tal Daily in Kuala Lumpur.

Ku­lasegaran said the govern­ment is ex­pected to col­lect about RM479 mil­lion in con­tri­bu­tions this year, ben­e­fit­ing 57,282 re­trenched in­di­vid­u­als.

The EIS took ef­fect last Jan 1 fol­low­ing the pass­ing of the EIS Act 2017 in par­lia­ment. Un­der the Act, em­ploy­ers and em­ploy­ees are each re­quired to con­trib­ute be­tween five sen and RM7.90 monthly.

Since the EIS fund can be mo­bilised only start­ing next year, the pre­vi­ous govern­ment has re­quested the So­cial Se­cu­rity Or­gan­i­sa­tion ( Socso) to pro­vide RM112 mil­lion as the tem­po­rary as­sis­tance.

Ac­cord­ing to Ku­lasegaran, such as­sis­tance will be con­tin­ued un­til a re­view is ex­pected by the end of this year.

On whether the con­tri­bu­tion rate of 0.2 per cent was a bit too low, he said it was pre­ma­ture to de­ter­mine whether it was so, but as­sured that the PH govern­ment

Even though this EIS was in­tro­duced and im­ple­mented by the pre­vi­ous govern­ment, the PH govern­ment has no in­tent to re­peal it, and the con­tri­bu­tion rate will re­main at 0.2 per cent. M Ku­lasegaran, Hu­man Re­sources Min­is­ter

will work on the best pol­icy to man­age the EIS fund.

As of June 8, he said a to­tal of 10,551 in­di­vid­u­als had ap­plied for the EIS tem­po­rary as­sis­tance.

He added that over RM4.4 mil­lion worth of as­sis­tance had been doled out to a to­tal of 7,761 ap­pli­ca­tions which had been approved.

In the mean­time, Ku­lasegaran said the fed­eral govern­ment is in the midst of propos­ing an amend­ment to the Act.

The pro­posed amend­ment, ac­cord­ing to him, is about do­ing away with the re­quire­ment of get­ting an ap­proval from the min­is­ter in- charge in or­der for the In­dus­trial Court to pro­ceed with cases.

He said when such re­quire­ment is done away with, the In­dus­trial Court can at­tend to var­i­ous cases as soon as pos­si­ble.

He dis­closed that some 1,600 in­dus­trial cases were sit­ting on his desk wait­ing for his ap­proval when he as­sumed of­fice.

As a re­sult, many cases faced a de­lay of at least five months, he said.

He felt that these cases should be at­tended to and solved within 31 days, par­tic­u­larly when they were deal­ing with re­trenched in­di­vid­u­als who ended up un­em­ployed.

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