EIS bill tabled in Dewan Rakyat

> Second reading to be done during current meeting, says minister

KUALA LUMPUR: The government yesterday tabled the Employment Insurance Scheme (EIS) bill to aid retrenched workers with bridging benefits and allowances.

It seeks to provide an insurance scheme for workers who have lost their jobs by providing benefits and re-employment programmes.

Human Resources Minister Datuk Seri Richard Riot, who tabled the bill in the Dewan Rakyat, said the bill will go for second reading in this meeting.

The scheme, which will be implemented by the Social Security Organisation (Socso), will require specific contributions from both employers and employees.

It will see the setting up of a committee to advise its board on the implementation of the scheme and investment of an Employment Insurance Fund.

It requires all companies, even those with only one employee, to register for EIS regardless of the amount of wages involved.

Any employer which fails to register shall be liable to a RM10,000 fine or a jail term of up to two years, or both.

EIS provides three schedules of contributions, which may be revised every three years with the minister’s approval.

The minister is also empowered under a proposed law to determine the use of any of the schedules after taking into consideration the sustainability of the fund.

Under the scheme, retrenched workers will be entitled to benefits and jobsearch allowances for a specific period until the worker finds a new job.

In May, Prime Minister Datuk Seri Najib Abdul Razak announced that RM70 million will be allocated to Socso for financial benefits relating to EIS for 2018.

In March, he said EIS is expected to be enforced in January next year, with payments made from Jan 1, 2019.

It was reported that both employers and employees will pay 0.25% of the employee’s salary into a common pool under Socso.

Najib had said EIS is a social security net that will cover some 6.5 million local workers in the private sector.