Under the Employment Insurance System (EIS) in Malaysia, if you lose your job due to reasons such as retrenchment, resignation due to threats in the workplace, closure of the company, or constructive dismissal, you may be eligible to claim various benefits provided by the scheme. These benefits include:
- Job search allowance
- Reduced income allowance
- Training fee (paid directly to vocational training service providers)
- Training allowance
- Early re-employment allowance
- Job-hunting assistance
The amount you can claim from EIS depends on various factors, including your last drawn salary before being retrenched and the duration of your employment. Typically, you can receive a percentage of your last drawn salary every month for up to six months. The exact percentage and amount you may receive each month can vary, but here's an example based on the provided information:
- First Month: 80% of last drawn salary (up to a cap of RM4,000)
- Second Month: 50% of last drawn salary
- Third Month: 40% of last drawn salary
- Fourth Month: 40% of last drawn salary
- Fifth Month: 30% of last drawn salary
- Sixth Month: 30% of last drawn salary
It's important to note that contributions to EIS are capped at a maximum monthly salary of RM4,000, so even if your last drawn salary was higher, the benefits you receive will be calculated based on this maximum amount.
Additionally, employers are required to contribute to the EIS scheme as well, and they are prohibited from reducing an employee's salary directly or indirectly due to contributions made to the scheme. Failure to comply with the scheme or making false claims can result in penalties for employers.
While the EIS provides financial support to help individuals cope with job loss, it may not cover your full salary, especially if you were earning above RM4,000 per month. In such cases, it's advisable to explore other income sources or have a contingency fund to manage financial obligations during unemployment.