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EIS (Employment Insurance System)

Updated: Apr 1

EIS | Bestar
EIS | Bestar

EIS: Employment Insurance System

The Employment Insurance System (EIS) is a social safety net program in Malaysia designed to financially support workers who lose their jobs involuntarily. It provides temporary income and job search assistance to eligible individuals, helping them bridge the gap between employment and find new jobs.

Here's a summary of the key points:

Who is covered?

  • All employees in the private sector, except:

  • Government employees

  • Domestic workers

  • Self-employed

  • Employees aged 60 and above (except new employees aged 55)

  • Employees aged 57 and above with no prior contributions

  • Employees earning above the contribution cap (currently RM5,000)


  • Employees and employers contribute a total of 0.4% of the employee's monthly salary, with each party contributing 0.2%.

  • Employees earning above the cap contribute the maximum amount of RM19.80 per month.


  • Income support: Eligible individuals receive a monthly income allowance for up to 6 months based on their previous salary.

  • Job search assistance: PERKESO (Social Security Organisation) provides various employment assistance services like career guidance, job matching, and training programs.


  • Must be a Malaysian citizen or permanent resident.

  • Between 18 and 60 years old.

  • Employed for at least 12 months within the past 36 months.

  • Not resigned voluntarily without just cause.

  • Not terminated due to misconduct or poor performance.

How to claim:

  1. Register for EIS online through the PERKESO portal.

  2. Submit an online claim within 60 days of losing your job.

  3. Attend a mandatory Job Search Orientation Program.

  4. Actively participate in job search activities and training programs.


Additional notes:

  • The EIS program is constantly evolving, so it is important to stay updated on the latest regulations and benefits.

  • PERKESO officers are available to assist with the application and claim process.

  • Other social security benefits like the Employment Injury Scheme and Invalidity Scheme are also administered by PERKESO.

How Bestar can Help Payroll Services in Malaysia

Bestar offers a range of services that can benefit businesses in Malaysia. Here are some key areas where Bestar can be valuable:

1. Company Registration and Compliance:

  • Bestar assists with the initial company registration process, including obtaining licenses and permits. This saves Malaysian businesses time and resources, allowing them to focus on their core business.

  • We offer ongoing compliance support, ensuring Malaysian businesses remain compliant with all relevant laws and regulations. This includes monitoring deadlines, filing reports, and responding to inquiries from authorities.

2. Payroll Processing and Administration:

  • Bestar offers payroll processing solutions tailored to the needs of Malaysian businesses. We can handle all aspects of payroll, including calculating salaries and deductions, generating payslips, and making payments to employees and relevant authorities.

  • We also provide payroll administration services, such as maintaining employee records, managing leave and benefits, and preparing reports. This frees up Malaysian businesses to focus on higher-value activities.

3. HR and Talent Management:

  • Bestar offers HR and talent management services that can complement payroll services. This includes onboarding, performance management, and training.

  • These services can help Malaysian businesses attract and retain top talent, improve employee satisfaction, and reduce turnover.

4. Tax and Regulatory Support:

  • Bestar provides expert tax and regulatory advice to Malaysian businesses. This helps them stay up-to-date with the latest changes and ensure compliance with all tax regulations.

  • We can also assist with tax preparation and filing, saving payroll service providers time and money.

5. Technology and Automation:

  • Bestar offers a cloud-based payroll solution that can automate many tasks, such as data entry, calculations, and reporting. This can significantly improve efficiency and reduce errors.

  • Their solution also integrates with other HR and financial systems, providing a seamless experience for Malaysian businesses.

6. Cost Savings:

  • By outsourcing payroll and other administrative tasks to Bestar, Malaysian businesses can save on overhead costs and improve their bottom line.

  • Bestar's economies of scale allow us to offer competitive rates and flexible pricing options.

7. Scalability and Growth:

  • Bestar's services can help Malaysian businesses scale their businesses quickly and efficiently. We can handle increased volumes of work without compromising on quality or service.

  • Bestar's team of experts is constantly innovating and developing new solutions to meet the changing needs of the payroll industry.

In summary, Bestar offers a comprehensive suite of services that can help busineses in Malaysia improve efficiency, reduce costs, and achieve their business goals.

Contact Bestar today!

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