What is the Employment Insurance System (EIS)?

The Employment Insurance System (EIS) was first implemented in January 2018 by PERKESO. It is a financial scheme aimed at helping employees who lost their jobs until they find new employment. The contributions are being collected in a fund in order to provide financial assistance to retrenched employees. It also aims to provide extended welfare coverage and aid in job search via career counselling and job-hunting assistance. 


1. Employer & Employee Contributions

All private sector employers need to pay monthly contributions for each employee. Civil servants, domestic servants and those who are self-employed are exempted. All employees from 18 years of age until 60 years of age have to contribute. Employees aged between 57 and 60 who have never contributed to SOCSO are exempted from this protection plan. 

2. Contribution Rates

The contribution rate for EIS is ~0.2% of the employee's salary (employer share) and ~0.2% of the employee's salary (employee share). The maximum eligible monthly salary is capped at RM 4,000. You may refer to the contribution table below for more information:


Amount of WagesEmployer Contribution
Employee ContributionTotal Contribution
1
Wages up to RM30
5 sen
5 sen
10 sen
2
When wages exceed RM30 but not exceed RM50
10 sen
10 sen
20 sen
3
When wages exceed RM50 but not exceed RM70
15 sen
15 sen
30 sen
4
When wages exceed RM70 but not exceed RM100
20 sen
20 sen
40 sen
5
When wages exceed RM100 but not exceed RM140
25 sen
25 sen
50 sen
6
When wages exceed RM140 but not exceed RM200
35 sen
35 sen
70 sen
7
When wages exceed RM200 but not exceed RM300
50 sen
50 sen
RM1.00
8
When wages exceed RM300 but not exceed RM400
70 sen
70 sen
RM1.40
9
When wages exceed RM400 but not exceed RM500
90 sen
90 sen
RM1.80
10
When wages exceed RM500 but not exceed RM600
RM1.10
RM1.10
RM2.20
11
When wages exceed RM600 but not exceed RM700
RM1.30
RM1.30
RM2.60
12
When wages exceed RM700 but not exceed RM800
RM1.50
RM1.50
RM3.00
13
When wages exceed RM800 but not exceed RM900
RM1.70
RM1.70
RM3.40
14
When wages exceed RM900 but not exceed RM1,000
RM1.90
RM1.90
RM3.80
15
When wages exceed RM1,000 but not exceed RM1,100
RM2.10
RM2.10
RM4.20
16
When wages exceed RM1,100 but not exceed RM1,200
RM2.30
RM2.30
RM4.60
17
When wages exceed RM1,200 but not exceed RM1,300
RM2.50
RM2.50
RM5.00
18
When wages exceed RM1,300 but not exceed RM1,400
RM2.70
RM2.70
RM5.40
19
When wages exceed RM1,400 but not exceed RM1,500
RM2.90
RM2.90
RM5.80
20
When wages exceed RM1,500 but not exceed RM1,600
RM3.10
RM3.10
RM6.20
21
When wages exceed RM1,600 but not exceed RM1,700
RM3.30
RM3.30
RM6.60
22
When wages exceed RM1,700 but not exceed RM1,800
RM3.50
RM3.50
RM7.00
23
When wages exceed RM1,800 but not exceed RM1,900
RM3.70
RM3.70
RM7.40
24
When wages exceed RM1,900 but not exceed RM2,000
RM3.90
RM3.90
RM7.80
25
When wages exceed RM2,000 but not exceed RM2,100
RM4.10
RM4.10
RM8.20
26
When wages exceed RM2,100 but not exceed RM2,200
RM4.30
RM4.30
RM8.60
27
When wages exceed RM2,200 but not exceed RM2,300
RM4.50
RM4.50
RM9.00
28
When wages exceed RM2,300 but not exceed RM2,400
RM4.70
RM4.70
RM9.40
29
When wages exceed RM2,400 but not exceed RM2,500
RM4.90
RM4.90
RM9.80
30
When wages exceed RM2,500 but not exceed RM2,600
RM5.10
RM5.10
RM10.20
31
When wages exceed RM2,600 but not exceed RM2,700
RM5.30
RM5.30
RM10.60
32
When wages exceed RM2,700 but not exceed RM2,800
RM5.50
RM5.50
RM11.00
33
When wages exceed RM2,800 but not exceed RM2,900
RM5.70
RM5.70
RM11.40
34
When wages exceed RM2,900 but not exceed RM3,000
RM5.90
RM5.90
RM11.80
35
When wages exceed RM3,000 but not exceed RM3,100
RM6.10
RM6.10
RM12.20
36
When wages exceed RM3,100 but not exceed RM3,200
RM6.30
RM6.30
RM12.60
37
When wages exceed RM3,200 but not exceed RM3,300
RM6.50
RM6.50
RM13.00
38
When wages exceed RM3,300 but not exceed RM3,400
RM6.70
RM6.70
RM13.40
39
When wages exceed RM3,400 but not exceed RM3,500
RM6.90
RM6.90
RM13.80
40
When wages exceed RM3,500 but not exceed RM3,600
RM7.10
RM7.10
RM14.20
41
When wages exceed RM3,600 but not exceed RM3,700
RM7.30
RM7.30
RM14.60
42
When wages exceed RM3,700 but not exceed RM3,800
RM7.50
RM7.50
RM15.00
43
When wages exceed RM3,800 but not exceed RM3,900
RM7.70
RM7.70
RM15.40
44
When wages exceed RM3,900 but not exceed RM4,000
RM7.90
RM7.90
RM15.80
45
When wages exceed RM4,000
RM7.90
RM7.90
RM15.80


3. EIS Payment

If it is the first time you contribute EIS for your employees, you will need to register with PERKESO first. Please see this article to find out how. There are a few ways to make payment, see this help article for an in-depth explanation. Later on this year, payments for EIS should be made possible via PERKESO's Assist Portal; to register, please follow these steps.


If you have other questions with regards to EIS, you may contact us via the chat support or at admin@payrollpanda.my.

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