In this blog, we’ll take a closer look at the contribution rates through the EIS Table 2021, 2022, and 2023. On January 1, 2018, SOCSO introduced the EIS PERKESO portal to help employers manage records, update employment information, and process contributions. This initiative, governed by the Employment Insurance System Act 2017 and administered by EIS SOCSO, protects employees aged 18 to 60 who have lost their jobs—except in cases of voluntary resignation, misconduct, retirement, and contract completion.
What is Employee Insurance System (EIS)?
The Employment Insurance System (EIS) provides financial assistance to employees who face unemployment.
Contributions are based on a percentage of monthly wages—0.2% from the employer and 0.2% from the employee. This makes a total of 0.4% per employee each month.
Contribution rates are categorized in structured references such as the EIS Table, which is updated annually. These guidelines are outlined in the Second Schedule of the EIS Act 2017. Private-sector employers are required to comply, while civil servants, domestic workers, and the self-employed are exempt.
The process of EIS filing includes:
- Receiving and recording EIS in the EIS Table EPA database,
- For draft and final EISs, setting start and end dates for comment and review periods,
- Publishing comment and review dates in weekly availability notice in the Federal Register.
Eligibility To Claim Benefits EIS PERKESO
- All employees who are insured under the Law EIS PERKESO (known as insured persons) who lose their jobs are entitled to do so with the following exceptions:
- Voluntary care of the insured person
- Expiration of the fixed-term contract of the insured person
- Unconditional termination of the contract for the provision of services by agreement between the Insured person and his employer
- Completion of the project specified in the service agreement
- Retirement of the insured person
- Dismissal due to misconduct of the Insured Person
- Benefit applicants must prove that they can work, are willing to work, and are actively looking for work.
When to pay and What to follow?
Payments must be made monthly along with SOCSO contributions. While reviewing the EIS contribution reference for 2021 to 2023, it’s important to understand that new employees aged 57 and above who haven’t contributed previously are exempted.
The monthly contribution is calculated based on the employee’s wages, capped at a maximum salary of RM 4,000. Employers should refer to the officially published EIS contribution table to determine the correct rates.
EIS Contribution Table
According to EIS Table 2021, 2022, and 2023 and EIS contribution table following rules should be followed by both employees and employers:
Employment Insurance System (EIS) – Rate of Contribution
Why Use the EIS Table?
The purpose of referencing the EIS Table is to eliminate errors in contribution computations. It provides clarity on wage bands and the corresponding contributions for both employees and employers.
To streamline the process, many companies are now using payroll systems that automatically compute EIS rates in compliance with the latest contribution structures. This reduces manual effort and helps businesses avoid penalties due to errors or delays.
Employer’s responsibility
You only need to register your employees as SOCSO members once, and they will automatically be eligible for the EIS PERKESO.
Employee Status Employer EIS Contribution Rate
Age 18-60 0.2%
The EIS contribution rate shown in the EIS Table 2021, 2022, and 2023 does not apply to new employees aged 57 and over who have not previously made a contribution.
Remember that the premium should be calculated based on the premium rate specified in the second annex of the Employment Insurance System Act 2017, and not on the exact calculation of interest. The maximum monthly contribution is RM 4,000.
For your convenience, you might consider using payroll software for the EIS contribution table or EIS Table to take a break from manually calculating and recording EIS payments for each employee.
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