Personal Finance Term
EIS / SIP
Employment Insurance System
A government scheme that gives temporary financial support and re-employment help to workers who lose their jobs involuntarily, funded by small monthly employer and employee contributions. Administered by PERKESO.
EIS (Sistem Insurans Pekerjaan) pays a job-search allowance to employees who are retrenched, made redundant, or otherwise lose their job through no fault of their own — it does not cover voluntary resignation or dismissal for misconduct. The benefit is a percentage of your previous salary, paid for a limited number of months, and tapers down over the claim period to encourage a return to work. It also funds career counselling and training to help you find a new job faster.
Contributions are a small fixed percentage of monthly wages, split between employer and employee, and run alongside your SOCSO contributions. To claim, you must register and apply within a set window after losing your job, so act quickly. EIS is a safety net, not a substitute for an emergency fund — most Malaysians should still aim to hold several months of living expenses in savings.