EIS (Employment Insurance System / SIP): Job Loss Protection
By LHDN Payroll Architect1 min read • 118 wordsLast Updated: June 2026
The Employment Insurance System (SIP or EIS), managed under PERKESO, provides immediate financial assistance and re-employment placement services for employees who unexpectedly lose their jobs in Malaysia. The program is fueled by minor payroll contributions.
Please Note: This calculator provides an estimate only and is not an official LHDN ( Hasil ), KWSP or PERKESO statutory submission tool. Actual PCB, EPF, SOCSO and EIS amounts may vary depending on employee status, residency, tax relief eligibility, rebates (e.g. spouse/children declarations), TP1/TP3 information, prior employment records within the year, and official updates. Please verify calculation figures against official LHDN portal, KWSP booklets, PERKESO schedules, or consult with a certified payroll/tax compliance specialist.
How EIS Contribution Rates work
Unlike other statutory accounts, EIS is lightweight. The rate is a flat 0.4% of the monthly wage: 0.2% deducted from the employee's salary, and 0.2% contributed by the employer. Contributions are strictly governed, and the monthly wage subject to calculation is capped at a ceiling of RM6,000.
Who is Covered and What are the Benefits?
Almost all private sector employees fall into mandatory EIS coverage. If laid off, workers can claim temporary job search allowances (up to 6 months tiered salary replacements), early re-employment incentives, and fully paid professional training programs.
Frequently Asked Questions (FAQs)
No, EIS is strict. You cannot claim EIS if you resign voluntarily, terminate by mutual consent, or are dismissed due to proven personal misconduct. It is solely designed for involuntary layoffs, down-sizings, or business bankruptcies.
Related Calculators & Worksheets
Verified Official Government Sources
We encourage you to audit and verify your tax/salary breakdowns against the latest official Malaysian government directives and statutory booklets:
LHDN / HASiL (Inland Revenue Board)
Official agency governing personal income tax e-Filing, CP39, and PCB computerized policies.
KWSP / EPF (Employees Provident Fund)
Mandatory retirement savings schema, interest rates, and Form 17A contribution policies.
PERKESO / SOCSO (Social Security)
Disability schemas, table schedules, and standard employer/employee Category 1/2 rates.
PERKESO EIS / SIP (Employment Insurance)
Job loss safety plans, application process, and 0.2% rate policies.
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