Malaysia’s EIS contributors to get enhanced benefits, protection from October 1

Contributors to Malaysia’s Employment Insurance System (EIS) will receive enhanced financial support and employment assistance under amendments to the Employment Insurance System Act 2017, with the changes taking effect on October 1.

Human Resources Minister Datuk Seri R. Ramanan said eligible contributors could receive benefits and support worth up to RM25,000 under the amended law, which is aimed at strengthening protection for workers who lose their jobs and supporting their return to employment. PERKESO has also listed the amendments among its September 2026 updates. 

The amendments were passed by the Dewan Rakyat last December and include higher allowances for workers who return to employment early, as well as new support for those who need to relocate to take up a job.

Higher re-employment allowance

Under the revised provisions, the Early Re-Employment Allowance (EBSA) will increase from 25% to 50% of the remaining unpaid Job Search Allowance.

The allowance is intended to provide an additional financial incentive to eligible EIS recipients who secure employment before exhausting their Job Search Allowance. PERKESO's existing EIS framework provides income replacement and re-employment assistance to eligible workers who have lost their jobs. 

Ramanan announced the changes during a press conference following the launch of PERKESO’s iLINDUNGu Mega Festival on September 19.

RM1,000 mobility allowance for workers relocating

The amendments will also introduce a one-off RM1,000 Mobility Assistance Allowance for eligible contributors who need to relocate for a new job more than 100km from their home.

The measure is intended to help address geographical mismatches between workers and available jobs by providing financial support to those willing to move for employment. 

The Malaysian Employers Federation has said the allowance could help improve job matching, particularly where vacancies are located outside workers’ immediate areas. The allowance will be available from October 1.

Training support increased

The changes also strengthen the training component of the EIS. The Training Allowance will increase to RM30 per day from RM10 previously, while the maximum training fee covered by the scheme will rise from RM4,000 to RM7,000.

The enhanced support is designed to help unemployed workers reskill and transition into new employment. Existing EIS provisions allow eligible jobseekers to undertake vocational skills training during their unemployment period or after returning to work. 

The increase comes as employers and workers navigate a labour market where skills requirements are changing rapidly, making reskilling and faster transitions between jobs increasingly important.

Strengthening the employment safety net

The EIS, established in 2018, provides income replacement and re-employment assistance to insured workers who lose their jobs. 

Eligible recipients can receive the Job Search Allowance for three to six months, depending on their contribution history, alongside employment placement and training support. 

Under the current system, contributors pay a combined EIS contribution of 0.4% of their assumed monthly salary, split equally between employers and employees. 

The latest amendments therefore broaden the scheme beyond income replacement, placing greater emphasis on helping workers return to employment, acquire new skills and overcome practical barriers such as relocation.

Support extended to housewives

Separately, Ramanan said 400 housewives in Sungai Buloh had received contributions totalling RM48,000 under PERKESO’s Lindung Kasih Scheme, or Housewives’ Social Security Scheme.

The contributions cover participation fees funded by PERKESO and contributors, extending social protection coverage to housewives.

With the EIS changes coming into effect on October 1, Malaysia is strengthening the financial and employment support available to workers navigating job loss, while placing greater emphasis on re-employment, mobility and skills development.