Employment Insurance Scheme

The Government will introduce the Employment Insurance Scheme (EIS) to offer protection to workers who are retrenched when their employers wind up business. Human Resources Minister Datuk Seri Richard Riot Jaem said both employees and employers will contribute to the scheme, similar to the contributions made to the Social Security Organisation (Sosco) at present.

The ministry had met employers and businesses and the majority had expressed their willingness to participate in the EIS. The scheme will involve some 430,000 employers and benefit about 6.5 million workers. This scheme will protect local workers in case their employers go out of business.