PUTRAJAYA: The government has allocated RM70 million for interest payment under the new Employment Insurance Scheme (SIP) for private sector employees, which will kick start next year.
Prime Minister Datuk Seri Najib Razak, in his Labour Day speech earlier, said the move was to ensure that some 6.5 million private sector employees are protected under the Employees Social Security Act 1969.
The insurance will provide financial assistance and provide new job opportunities for those who have lost their source of employment, he said.
"Through SIP, employees will receive temporary remuneration for themselves and their family for a stipulated period until they find a job.
"Apart from financial assistance, these employees will also be given Employee Service Support which will include job search, job matching, career counselling and training. We hope this will help to secure a suitable job," he added.
He said benefit payments are expect to be made from Jan 1, 2019.
SIP is a long term measure not only to help affected workers but also to preserve and boost sustainable economic growth if recession occurs, Najib said.
"Therefore I call on parties especially employers to support the implementation of SIP," he added.
Najib said the government is fine tuning laws for SIP which is currently being drafted and are expected to be tabled in the next Parliament session.