EIS Malaysia 2026: Eligibility, Benefits, and Contribution Rates

What is the Employment Insurance System (EIS)?

Employment Insurance System (EIS) is a financial scheme managed by PERKESO/SOCSO, that provides monetary assistance for employees who unexpectedly lose their jobs.

Beyond financial aid, EIS also offers extended welfare coverage, including career counselling and job-hunting assistance, to help retrenched workers re-enter the workforce.

Contributions are collected into a central fund, ensuring support is available when needed.

Who Qualifies for EIS Contribution?

Generally, employees who qualify for EIS contributions are:

• Malaysian citizens (permanent or temporary residents)
• Aged between 18 and 60
• Employed under a Contract of Service (COS)
• Working in the private sector (full-time or part-time)
• Fulfilling the criteria for Loss of Employment

However, some categories are exempted:

• Domestic employees
• Civil servants
• Employees in local authorities and statutory bodies
• Self-employed individuals
• Employees aged 57 and above who have never contributed to EIS
• Employees who have reached the compulsory retirement age
• Workers whose fixed-term contract has expired without renewal

Understanding Income Subject to EIS Contribution in Malaysia

Calculating EIS contributions accurately depends on understanding which income categories are included. Here’s a breakdown:

Categories of Income Subjected to EIS Contribution

• Salary
• Overtime Pay
• Commission and Service Charges (as part of the compensation)
• Allowance and Incentives (e.g., housing, meal, performance-based incentives)
• Payment for Leave (annual leave, sick leave, maternity leave, rest days, public holidays)

Payments Exempted from EIS Contribution

• Bonus and Director Fee (additional earnings beyond regular salary)
• Expenses Claim (reimbursements for business-related out-of-pocket expenses)
• Mileage Claims and Traveling Allowance
• EPF Contribution
• Gratuity or Payment for Dismissal/Retrenchment
• Benefit in Kind (non-monetary benefits like company-provided accommodation or transportation)

EIS Contribution Table 2026

As of 2026, the Employment Insurance System (EIS) in Malaysia continues to follow the updated wage ceiling of RM6,000 per month.

The total contribution rate remains 0.4% of the employee's assumed monthly salary, split equally between the employer (0.2%) and the employee (0.2%).

This means the maximum contribution will be based on this cap, regardless of higher salaries.

You may refer to the official EIS Contribution Rate table for the latest and accurate information.

Who Is Responsible for EIS Contributions?

Both employers and employees are legally obligated to contribute to the EIS scheme. However, the employer bears the responsibility for remitting the contributions to PERKESO.

This involves registering your business and employees with PERKESO, deducting the respective contributions from both employer’s share and employees’ salaries, and then remitting these amounts to PERKESO regularly.

Employees, in turn, are responsible for providing accurate and up-to-date information to ensure correct contribution calculations.

You may refer to the PERKESO/SOCSO Contribution Table 2026 to explore the recent changes on the wage ceilings as well as foreign worker policies.

How to Pay for Employees’ EIS in Malaysia?

First off, you need to submit your company’s EIS contribution via the PERKESO Assist portal.

Here’s a quick guide:

1. 1. Log in to the Assist Portal.
2. 2. Navigate to My Sites and select EIS-Contribution to generate an Electronic Challan cum Return (ECR).
3. 3. Choose Employer Contribution, then click on Add Contribution (Text file).
4. 4. Upload your EIS file and submit it.
5. 5. Complete your payment via any of these convenient methods:
   • Internet banking
   • Financial Process Exchange (FPX)
   • Direct Debit Authorisation (DDA)
   • Money order, cheque, or postal order payable to PERKESO (ensure your name, Employer Code, and the contribution month/year are written on the back).
   • Remit via your bank portal or counter with your ACR reference (Maybank, RHB Bank, and Public Bank are approved collection agents).
   • Prihatin mobile app

What are the key benefits employees can receive under the EIS?

The Employment Insurance System (EIS) offers several key benefits to help employees who have lost their jobs:

• Job Search Allowance (JSA): Receive financial support for 3-6 months, with the payment rate gradually decreasing over time (starting at 80% of the assumed monthly wage).
• Early Re-employment Allowance (ERA): Get a financial incentive once they accept a job offer while receiving JSA.
• Reduced Income Allowance: If they have multiple income sources and lose some, but not all, of them, they may be eligible for income replacement.
• Training Allowance: Receive a daily allowance (RM10-RM20) depending on the assumed monthly wage - while undergoing approved training.
• Training Fee: Course fees up to RM4,000 are paid directly to the training provider.
• Re-Employment Placement Programme and Career Counselling: Get help with job searching through MYFutureJobs, including job matching tailored to their experience and skills, along with career counseling from Employment Services Officers.

Simplify EIS Compliance with HRMS

For HR professionals in Malaysia, keeping pace with Employment Insurance System (EIS) compliance is crucial, yet often complex.

QuickHR all-in-one HR software resolves this challenge, ensuring your organisation remains compliant while streamlining your entire employee management process.

• Specifically tailored to Malaysia's regulatory landscape
• Always up-to-date with the latest EIS contribution rates and regulations
• Automated EIS contribution calculations, ensuring accurate salary deductions
• Generate upload files for submission through PERKESO i-Assist or your company bank
• Detailed reports on EIS contributions and overall payroll data for auditing and strategic planning

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