EIS – Employment Insurance System

The EIS is being setup to provide temporary financial assistance to employees who lose their jobs through:

1. Retrenchment or redundancy
2. Voluntary or Mutual Separation Scheme
3. Force majeure such as natural disasters, riot, fire, or gas leak incidents
4. Employers absconds, becomes bankrupt, or the business closes down
5. Business restructuring, automation, digital technology
6. Downsizing
7. Constructive dismissal (forced to resign because of employer’s conduct or breach of contract by employers)
8. Required to perform work beyond normal scope of duties that would endanger the safety and health of the employee
9. Resigned due to personal or family threats, or due to sexual harassment

The financial assistance however, does not cover employees who:

• voluntarily resign,
• whose contracts are  not renewed,
• are terminated for disciplinary reasons, or,
• have reached the mandatory retirement age.

Retrenched employees will receive financial assistance on a scale starting from 80% of their last drawn salary, down to 30% in the sixth month. The amount paid out will also depend on how long the employee has been making contributions to EIS.

1st month	80%
2nd month	50%
3rd month	40%
4th month	40%
5th month	30%
6th month	30%

Financial assistance will only commence from 2019.

Contributions

Employers	0.2%
Employees	0.2%
Total	0.4%

Registrations

New employers are required to complete and submit the following

• SIP1 – Employer details
• SIP2 – Employee details

Existing employers will need to complete and submit

• SIP1A – Employer details
• SIP2A – Employee details

The above forms can be downloaded from SOCSO’s website.

Note that registration of employees is the responsibility of the employer.