Workers to get better protection under EIS

By the Editorial Team · Sunday, September 20, 2026

Malaysia’s Employment Insurance Scheme will introduce increased financial support and expanded benefits, including higher re-employment and training allowances, starting October 1. These changes aim to improve jobseekers’ financial stability, enhance worker reskilling, and extend social protection to gig economy workers through government-private sector collaboration.

Malaysia’s Employment Insurance Scheme (EIS) is set to provide enhanced benefits and protections for workers following recent amendments to the Employment Insurance System Act, which will take effect on October 1. The revised legislation, announced by Human Resources Minister Datuk Seri R. Ramanan, aims to increase financial support for jobseekers and improve governance of the scheme.

Among the key changes, the Early Re-Employment Allowance has been raised from 25% to 50% to better assist unemployed workers who return to employment. Additionally, the mobility allowance, designed to support workers who must relocate for work, will now be disbursed as a one-time payment. Those relocating over a distance of 100 kilometers will receive RM1,000 to offset relocation expenses.

The amendments also enhance training support. The training allowance has been increased from RM10 to RM30 per day, and the maximum training fee covered under the scheme has risen from RM4,000 to RM7,000. These measures are intended to facilitate reskilling and upskilling among contributors.

Social protection for gig economy workers has also received attention. To date, RM1.5 million has been contributed to extend coverage to 500 e-hailing and p-hailing drivers. The contributions came from key industry players, including Foodpanda with RM1 million, Grab with RM500,000, and Halo with approximately RM14,400. Ramanan emphasized the importance of this collaboration between the government and private sector in safeguarding gig workers, noting that many depend on such income to support their families and vulnerable households.

The announcement was made during the launch of the PERKESO iLINDUNG Mega Festival, a three-day event that began on Friday in Petaling Jaya. The festival features a special 24-hour Opt-in Protection counter allowing workers who previously opted out of EIS to re-enroll, reinforcing the government’s push for broader coverage.

Employers attending the event can benefit from discounts of up to 80% on late payment interest for contributions, while visitors have access to services such as contribution checks, benefit consultations, and registration for various PERKESO schemes. The event also promotes employment opportunities through the MYFutureJobs platform, offering 2,000 job vacancies from 25 employers, with salaries reaching up to RM12,000.

Ramanan underscored the ministry’s commitment to engaging directly with the public, stressing an approach centered on listening to worker concerns and delivering solutions at the community level. These reforms aim to strengthen the social safety net for Malaysian workers amid evolving labor market challenges.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.