SEREMBAN: The Social Security Organisation (SOCSO) received 23,665 applications for benefits from the Employment Insurance System (SIP) from January to July 17, said Human Resources Minister V. Sivakumar.
He said that of the total, 17,432 applications were approved involving RM91.55 million in SIP benefit payments, which among others involved Job Search Allowance (EMP), Reduced Income Allowance (EPB) and Re-employment Allowance and various others.
"This SIP is to protect the welfare of workers before layoffs happen, through this intervention, their income will continue.
"This scheme is important,(but) many do not know about it, SOCSO's role is broad, it is not focused only on assistance schemes for workers who are injured. If workers contribute to SIP, they can benefit from various types of assistance," he told reporters.
Earlier, he presented EMP to 30 former factory operators of two companies in Negeri Sembilan which had to terminate their services due to the reduced production of rubber products and supply of electronic components over the past three years.
He said SOCSO provided EMP benefits totalling RM1.37 million to 526 workers in the state who lost their livelihood following the companies' economic woes.
He added that the benefits are channelled for three to six consecutive months if they are sacked due to the companies' economic problems.
"The starting rate of the allowance is 80 per cent of the average salary for six months, subject to a ceiling salary limit of RM5,000. Then, the subsequent monthly rates will decrease to 50 per cent, 40 per cent, 40 per cent, 30 per cent and 30 per cent," he said.
He said this social protection assistance is part of the main benefits under the Employment Insurance System Act 2017 (Act 800), aimed at reducing their financial burden temporarily while they seek re-employment.