Malaysia Retrenched Workers Will Receive RM600 as Allowance Starting 2018 - The Coverage

Malaysia Retrenched Workers Will Receive RM600 as Allowance Starting 2018

RM600 allowance for retrenched workers thumbnail

The news about struggling Malaysians to make ends meet in this harsh economy has been in a rise these days. Especially after our local popular singer, Sheila Majid, tweeted this two days ago and sparked a lot of debate from government officials:

sheila majid malaysiakini
Source: Malaysiakini

But here is a little good news for those who just lost their job due to retrenchment or closing of company. Starting next year, retrenched workers will qualify for a cash allowance of RM600 per month for a maximum of three months under the Employment Insurance System (EIS).

57,282 individuals were expected to benefit from EIS which involves more than RM103 million payout next year, said Social Security Organisation (Socso) chief executive officer Datuk Dr. Mohammed Azman Aziz Mohammed.

Social Security Organisation (Socso) chief executive officer Datuk Dr Mohammed Azman Aziz Mohammed
Source: NST

Employees that have taken up Voluntary Separation Schemes (VSS) are also qualified for the benefit, he said adding that the government’s RM122 million allocation was what enabled Socso to implement EIS.

Besides the fair amount of monetary aid, EIS would also help the workers to match to new jobs in Malaysia.

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Socso chairman Tan Sri Aseh Che Mat said the move is important to increase the productivity of the nation as it strives to achieve the status of a developed country.

“Under the Employee Insurance Scheme, we will help those who lose their jobs, they are not just compensated but Perkeso will also match potential jobs to them. We will help assist in looking for a replacement job. This is important to see our country reach the status of a developed nation,” said Aseh.

From today onwards, Socso will run roadshows for a month in 17 locations nationwide to educate Malaysians about its coverage, registration, contribution, administration and enforcement of EIS to employers, employees and workers unions in the country, said the CEO.

Human Resources Ministry secretary-general Datuk Dr. Mohd Gazali Abas said the ministry is targeting RM470 million to be benefited by 6.4 million private sector workers through the EIS programme.

The program will act as a social safety net to help Malaysians that caught in the mess of retrenchment by providing financial aids and new jobs.

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The bill that constituted EIS was passed by the Dewan Rakyat on 25 October. Employees and employers are required to contribute 0.2% of their income to EIS starting next month.

Source: NST; Cover Photo: Malaymail


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