Nation

Retrenched workers to receive cash allowance starting 2018

KUALA LUMPUR: Starting next year, retrenched workers will qualify for an interim benefit in the form of cash allowance of RM600 per month for a maximum of three months under the Employment Insurance System (EIS).

Social Security Organisation (Socso) chief executive officer Datuk Dr Mohammed Azman Aziz Mohammed said the government had allocated RM122 million to enable Socso to implement the EIS.

He said 57,282 individuals were expected to claim the benefit involving more than RM103 million next year.

“Through the EIS programme, those who take up Voluntary Separation Schemes (VSS) are also eligible for the benefit,” he told a media conference here on Tuesday.

On the same matter, Socso would be conducting roadshows for a month in 17 locations nationwide from tomorrow onwards to provide an understanding of the coverage, registration, contribution, administration and enforcement of EIS to employers, employees and workers unions in the country, he said.

Earlier, Human Resources Ministry secretary-general Datuk Dr Mohd Gazali Abas said the ministry is targeting that RM470 million will be contributed by 6.4 million private sector workers through the EIS programme.

EIS will be implemented in January as a social safety net aimed at helping private sector workers who lose their jobs to get financial assistance and find new jobs.

On Oct 25, the Dewan Rakyat passed the EIS Bill 2017 and the Bill will be tabled at the current sitting of the Dewan Negara for final approval.

Under the EIS scheme, employers and employees will each contribute 0.2 per cent of an employee’s monthly salary.—BERNAMA

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