Malaysia News - Social Security: Implementation of an Employment Insurance System (EIS)

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In response to a significant rise in the number of retrenchments over the past years, the government announced several months ago its intent to introduce a new scheme in order to improve the protection of retrenched employees. The Employment Insurance System (“EIS”) Bill 2017 was finally passed on 25 October 2017. It provides retrenched employees with new benefits by implementing financial aid for retrenched employees and additional support in job’s search, which will be financed by a new social contribution. This new scheme will be managed by the Social Security Organisation (short “SOCSO”) and is expected to come into force on 1 January 2018.