What is EMPLOYMENT INSURANCE SYSTEM ACT 2017?

*EMPLOYMENT INSURANCE SYSTEM ACT 2017 is Malaysia Act, cited as Act 800 2017, currently marked in force and first recorded in 2017.

Is EMPLOYMENT INSURANCE SYSTEM ACT 2017 still in force?

Yes — EMPLOYMENT INSURANCE SYSTEM ACT 2017 is currently in force.

When did EMPLOYMENT INSURANCE SYSTEM ACT 2017 take effect?

EMPLOYMENT INSURANCE SYSTEM ACT 2017 was first recorded in 2017.

How many sections does EMPLOYMENT INSURANCE SYSTEM ACT 2017 have?

EMPLOYMENT INSURANCE SYSTEM ACT 2017 contains 175 sections.

What amends EMPLOYMENT INSURANCE SYSTEM ACT 2017?

EMPLOYMENT INSURANCE SYSTEM ACT 2017 has been amended by AKTA SISTEM INSURANS PEKERJAAN (PINDAAN) 2022 and AKTA SISTEM INSURANS PEKERJAAN (PINDAAN) 2024.

Where can I read the official version of EMPLOYMENT INSURANCE SYSTEM ACT 2017?

The official text of EMPLOYMENT INSURANCE SYSTEM ACT 2017 is published at lom.agc.gov.my.

EMPLOYMENT INSURANCE SYSTEM ACT 2017 (No. 800)

PRELIMINARY

Short title and commencement

Section 1

(2)

This Act comes into operation on a date to be appointed by the

Minister by notification in the Gazette.

Application

Section 2

(2)

This Act shall not apply to persons described in the First

Schedule.

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Interpretation

Section 3

In this Act, unless the context otherwise requires—

“required number of monthly contributions” means the number of monthly contributions paid in respect of an insured person irrespective of whether the contributions are made in consecutive months or not as specified in the Fourth Schedule;

“contribution” means the sum of money payable to the Organization by an employer in respect of an insured person and includes any amount payable by or on behalf of the insured person in accordance with this Act;

“early re-employment allowance” means an incentive paid in lump sum to an insured person for accepting an offer of employment from any employer and commencing the employment within the waiting period or the period of receiving job search allowance at the rate as specified in the Third Schedule;

“training allowance” means a monthly payment to an insured person for a period of not more than six months for attending any training in

Malaysia provided by a training provider;

“job search allowance” means a monthly payment for a period of three to six consecutive months to assist an insured person who has lost his employment during the period he is seeking for an employment;

“reduced income allowance” means a lump sum payment to assist an insured person who has two or more employments and has lost one or more of his employments;

“benefit” means a job search allowance, an early re-employment allowance, a reduced income allowance, a training allowance and a training fee;

“wages” means all remunerations payable in money by an employer to an employee including any payment in respect of leave, holidays, overtime and extra work on holidays but does not include—

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(a)

any contributions payable by the employer to any pension fund, social security fund or provident fund;

(b)

any traveling allowance or the value of any traveling concession;

(c)

any sum paid to the employee to pay for special expenses incurred as a result of his employment;

(d)

any gratuity payable on discharge or retirement;

(e)

any annual bonus;

(f)

any benefit under any other written law administered by the Organization; and

(g)

any other remuneration as prescribed;

“Committee” means the Employment Insurance Committee established under section 8;

“Appellate Board” means the Social Security Appellate Board constituted under section 83 of the Employees’ Social Security

Act 1969 [Act 4];

“Director General” means the Director General of the Organization appointed under subsection 59(1) of the Employees’ Social Security

Act 1969;

“Fund” means the Employment Insurance Fund established under section 46;

“Board” means the Social Security Organization Board established under section 59B of the Employees’ Social Security Act 1969;

“employer” means the owner of an industry or the person with whom an employee has entered into a contract of service or apprenticeship and includes—

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(a)

a manager, an agent or a person responsible for the payment of wages to the employee; and

(b)

the legal representative of the owner of the industry or such person;

“Minister” means the Minister charged with the responsibility for human resources;

“insured person” means an employee who is registered under section 16 or deemed to have been registered under section 17 in respect of whom contributions are or have been paid, or are payable;

“dependant” means a widow or widower, a child, a parent, a sibling under twenty-one years old or a grandparent of the deceased insured person;

“officers and servants of the Organization” means the officers and servants of the Organization appointed under section 59L of the

Employees’ Social Security Act 1969;

“Employment Services Officer” means an officer appointed under section 67 and includes an Inspector;

“employee” means a person who is employed for wages under a contract of service or apprenticeship with an employer, whether the contract is expressed or implied or is oral or in writing, on or in connection with the work of an industry to which this Act applies;

“training provider” means any person who has a training facility to carry out trainings for the purposes of re-employment placement programme;

“Inspector” means an Inspector appointed under section 12 of the

Employees’ Social Security Act 1969 and includes the Director

General and every Deputy Director General;

“Organization” has the meaning assigned to it in the Employees’

Social Security Act 1969;

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“industry” includes any business, trade, undertaking, manufacture or calling of employers, and includes any calling, services, handicraft or industrial occupation of employees;

“re-employment placement programme” means a programme managed by the Organization for insured persons for the purposes of re-employment of the insured persons;

“System” means the Employment Insurance System established under section 4;

“contributions qualifying conditions” means the required number of monthly contributions over an eligibility period as specified in the

Fourth Schedule;

“eligibility period” means a period comprising a certain number of consecutive months immediately preceding the loss of employment in respect of an insured person as specified in the Fourth Schedule;

“waiting period” means the period of seven days from the date of the approval of a claim for benefits under section 33;

“Deputy Director General” means the Deputy Director General of the Organization appointed under subsection 59(2) of the

Employees’ Social Security Act 1969 including those appointed in accordance with subsection 5(3);

“minimum retirement age” has the meaning assigned to it in the Minimum Retirement Age Act 2012 [Act 753].

Section 4

(2)

The System shall be administered by the Organization.

(3)

For the purpose of administering the System, the Organization shall vest in the Board such powers and shall impose upon the Board such duties as the Organization may determine.

Director General

Section 5

(2)

The Deputy Directors General of the Organization shall be the

Deputy Directors General for the purposes of this Act.

(3)

Notwithstanding subsection (2), the Minister may appoint one or more Deputy Directors General for the purposes of this Act.

(4)

If for any period the Director General is temporarily absent from Malaysia or temporarily incapacitated through illness, or for any other reasons is unable to perform his duties, or where the office of the

Director General becomes vacant, the Minister shall appoint one of the

Deputy Directors General to perform the duties of the Director General during such period.

(5)

The terms and conditions of the service of the Deputy Directors

General appointed under subsection (3) shall be determined by the

Minister after consultation with the Minister of Finance.

Powers of Organization to hold properties, etc.

Section 6

The Organization may, upon such terms and conditions as the

(a)

enter into contracts;

(b)

acquire, purchase, take, hold and enjoy movable and immovable property of every description; and

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(c)

convey, assign, surrender, yield up, charge, mortgage, demise, lease, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest vested in the Organization.

Exercise of functions and powers of Organization

Section 7

Organization deems fit for the purposes of this Act—

(2)

Notwithstanding subsection (1), the Director General may, in writing, delegate any of his powers and functions subject to such terms and restrictions as he thinks fit to the Deputy Directors General,

Employment Services Officers, or officers and servants of the

Organization for the purposes of this Act.

COMMITTEES

Employment Insurance Committee

Section 8

(2)

The function of the Committee is to advise the Board on all matters relating to the System including the rates of contribution, benefits and the employees to be insured under this Act, and on matters relating to the investment of the Fund.

(3)

The Committee shall consist of the following members:

(a)

the Chairman of the Board who shall be the Chairman;

(b)

the Director General who shall be the Deputy Chairman;

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(c)

one member representing the Ministry responsible for human resources;

(d)

one member representing the Ministry responsible for finance;

(e)

one member representing the Prime Minister’s Office responsible for economic planning;

(f)

one member representing the department responsible for labour in Peninsular Malaysia;

(g)

one member representing the department responsible for labour in Sabah;

(h)

one member representing the department responsible for labour in Sarawak;

(i)

one member representing the department responsible for industrial relations;

(j)

one member representing the department responsible for skills development;

(k)

one member representing the Institute of Labour Market

Information and Analysis;

(l)

not more than three members of any association or trade union representing employees who shall be appointed by the Minister;

(m)

not more than three members of any association or trade union representing employers who shall be appointed by the Minister;

(n)

not more than three other members with experience, knowledge and reasonable expertise in employment insurance, labour matters and investment who shall be appointed by the Minister.

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(4)

The Minister may revoke the appointment of any member of the Committee appointed under paragraphs (3)(l), (m) and (n).

(5)

Any member appointed by the Minister under paragraph (3)(l),

(m)

or (n) may, at any time, resign as a member of the Committee by giving written notice to the Minister.

(6)

The members of the Committee shall be paid such allowances and other expenses as the Board may determine.

(7)

A member of the Committee shall hold office on such conditions and for such terms as may be specified in his letter of appointment and is eligible for reappointment for any term as the

Board may determine.

(8)

The Committee shall meet at least three times in each year.

(9)

The quorum for a meeting of the Committee shall be nine persons including the chairman of the meeting.

(10)

The Committee may invite any person to attend any meeting of the

Committee for the purpose of advising the Committee on any matter under discussion but that person shall not be entitled to vote at the meeting.

(11)

Any person invited under subsection (10) may be paid such allowances as the Board may determine.

(12)

Subject to this Act, the Committee may determine its own procedures.

(13)

The Organization shall appoint a secretary and assistant secretary to the Committee who shall be from amongst the officers and servants of the Organization.

Establishment of committees

Section 9

(2)

The Board may delegate its functions and powers to any such committee subject to such terms and restrictions as the Board considers fit.

(3)

Any committee established under subsection (1)—

(a)

shall be chaired by the Chairman of the Board;

(b)

shall conform to and act in accordance with any direction given to the committee by the Board; and

(c)

may determine its own procedure.

(4)

The members of the committee established under subsection (1)

may be appointed from amongst the members of the Board or such other persons as the Board thinks fit.

(5)

The members of the committee shall be paid such allowances and other expenses as the Board may determine.

(6)

A member of the committee shall hold office on such conditions and for such terms as may be specified in his letter of appointment and is eligible for reappointment for any term as the

Board may determine.

(7)

The Board may revoke the appointment of any member of the committee.

(8)

A member of a committee may, at any time, resign by giving written notice to the Chairman of the committee.

(9)

The Board may, at any time, discontinue or alter the constitution of a committee.

(10)

A committee shall hold its meetings at such times and places as the Chairman of the committee may determine.

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(11)

A committee may invite any person to attend any meeting of the committee for the purpose of advising the committee on any matter under discussion but that person shall not be entitled to vote at the meeting.

(12)

Any person invited under subsection (11) may be paid such allowances as the Board may determine.

Non-eligibility for appointment as members of Employment

Insurance Committee or committees

Section 10

The following persons are not eligible to be appointed as or become a member of the Committee, or any committee established under section 9:

(a)

a person who has been convicted of an offence involving fraud, cheating, criminal breach of trust, criminal misappropriation of property or any offence involving dishonesty or moral turpitude and sentenced to imprisonment for a term not less than one year;

(b)

a bankrupt; and

(c)

a person of unsound mind or is otherwise unable to carry out his functions.

Cessation of membership of Employment Insurance Committee or committees

Section 11

A member of the Committee, or any committee established under section 9, shall cease to be a member if he fails to attend three consecutive meetings without leave of the Chairman of the Committee or committee, as the case may be.

Section 12

Disclosure of interest

If any member of the Committee, or committee established under section 9, has any direct or indirect interest in any matter being

20 Laws of Malaysia considered by the Committee or committee established under section 9, as the case may be, he shall forthwith declare to the Chairman the nature and extent of his interest in the matter and the member shall not be present or take part in any discussion or decision of the Committee or committee established under section 9, as the case may be, about the matter.

REGISTRATION AND CONTRIBUTIONS

Determination of industry

Section 13

The Organization may, on the basis of any information or evidence available to the Organization, determine whether any activity carried out by any person falls within the meaning of “industry” to which this Act applies.

Section 14

Registration of industry

(2)

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Employers deemed registered

Section 15

Notwithstanding subsection 14(1), an employer that has registered his industry with the Organization in accordance with the

Employees’ Social Security Act 1969 before the coming into operation of this Act shall be deemed to have registered his industry under this

Act on the date this Act comes into operation.

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Section 16

All employees to be registered and insured

(a)

in the case of employees who are employed on or before the date the industries are registered under section 14, on the date the industries of the employers are so registered; and

(b)

in the case of employees who are employed after the date the industries are registered under section 14 or 15, within thirty days from the date the employees enter into employment, in such manner as prescribed irrespective of the amount of wages.

(2)

Notwithstanding subsection (1), if the wages of an employee at any time exceed five thousand ringgit a month, his wages shall for the purposes of this Act be deemed to be five thousand ringgit a month.

(3)

Notwithstanding that the employee in the industries to which this Act applies has not been registered in accordance with subsection (1), an employee in that industry shall be deemed to have been registered by the employer on the date the contribution is first paid by his employer under this Act.

(4)

The employer referred to in subsection (3) shall not pay the contributions in respect of the employee for the months prior to the month the contribution is first paid.

(5)

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Employees deemed registered

Section 17

(2)

The registration of the employees referred to in subsection (1)

shall be subject to the First Schedule.

Contributions

Section 18

(2)

The contributions payable under this Act shall be paid to the

Organization at the rates as specified in the Second Schedule based on the amount of the monthly wages of the employee insured under this Act.

(3)

The Minister may revise the rates of contribution after taking into consideration the sustainability of the Fund.

(4)

Notwithstanding subsection (2), the Minister may, by order published in the Gazette and subject to such conditions, determine—

(a)

the minimum rate of contribution to be paid by an employer in respect of an employee based on the amount of the monthly wages of the employee insured in accordance with the Second Schedule; and

(b)

the minimum rate of benefits to be provided by the

Organization based on the amount of the assumed monthly wages of the employee insured in accordance with the

Third Schedule.

Contributions where employee has more than one employer

Section 19

If an employee has two or more employers, every employer shall pay the contributions in respect of the employee separately.

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Section 20

Payment of contributions

(2)

The contributions payable in respect of an employee shall cease when the employee attains the minimum retirement age.

Interest on arrears of contributions

Section 21

If the amount of the monthly contribution payable by the employer in respect of an employee under section 18 is not paid within such period as referred to in section 20, the employer shall be liable to pay interest on such amount to the Organization at the rate as prescribed by the Minister in respect of any period during which such amount remains unpaid.

Section 22

Assessment of contributions, arrears of contribution and interest in certain cases

(a)

fails to pay the contribution, arrears on such contribution or interest on arrears of such contribution payable in respect of an employee; and

(b)

fails to—

(i)

keep or maintain any return, particulars, register book or record pertaining to each employee as

24 Laws of Malaysia required to be kept or maintained by the employer under this Act; or

(ii)

submit any return, particulars, register book or record pertaining to each employee as required under this Act.

(2)

The Employment Services Officer shall serve the assessment made under subsection (1) on the employer either personally or by registered post.

Recovery of arrears of contributions and interest

Section 23

(2)

The amount of contributions, arrears of contributions or interest on arrears of contributions payable in respect of an employee as assessed under subsection 22(1) shall be conclusive evidence of such amount.

(3)

The employer shall pay any arrears of contributions in respect of an employee to the Organization and the employer is entitled to recover the contributions payable by the employee in respect of the arrears from the employee for the period of not more than six months.

Employer not to reduce wages, etc.

Section 24

(2)

Any employer who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Power to appoint agent

Section 25

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(2)

The agents appointed under subsection (1) shall, as soon as practicable, inform the Organization the actual time and date of the payment of the contributions made by the employer.

(3)

Any agent who contravenes subsection (2) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Verification of contributions paid through agent

Section 26

Any contribution paid to the Organization by an employer through any agent appointed under section 25 shall be verified by the

Organization.

BENEFITS

Claim for benefits

Section 27

Every claim for benefits under this Act shall be submitted in such manner to the Organization with such evidence in support of the claim as prescribed.

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Section 28

Period for making claim for benefits

An insured person who considers that he has lost his employment shall submit an application for claim for benefits to the Organization within sixty days from the date he considers that he has lost his employment.

Section 29

Determination of period for making claim for benefits

(2)

If a claim for benefits is made after the period of sixty days from the date determined under subsection (1), the Organization shall reject the claim and notify the insured person in writing in such manner as prescribed.

(3)

If the claim for benefits is rejected under subsection (2), the claim for benefits shall be deemed to have never been made by the insured person.

Loss of employment

Section 30

(a)

the voluntary resignation by the insured person;

(b)

the expiry of the contract of service of the insured person;

(c)

termination of the contract of service by mutual consent of the employer and the insured person without terms and conditions;

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(d)

completion of the work in accordance with the terms of the contract of service;

(e)

the retirement of the insured person; or

(f)

the termination of contract of service of the insured person due to misconduct.

(2)

For the purpose of paragraph (1)(a), “voluntary resignation”

means an act by an insured person to terminate his contract of service with an employer at any time during the period of the contract of service other than the following:

(a)

a resignation under a voluntary separation scheme by mutual consent of the employer and the insured person;

(b)

a resignation tantamount to a constructive dismissal or a resignation due to willful breach of the terms and conditions of the contract of service by the employer;

(c)

a resignation due to any threat to the insured person or family of the insured person, or sexual harassment towards the insured person;

(d)

a resignation due to a command by the employer to perform work outside the scope of work which endangers the health and safety of the insured person; or

(e)

a resignation due to the closure of the workplace or the workplace is not in operation because of natural disaster, riot, civil commotion, demonstration or other similar situation, or the workplace becomes unsafe due to fire, gas leak or other similar dangerous situation.

Determination on question of loss of employment

Section 31

(2)

For the purpose of determination under subsection (1), the

Director General or any officer of the Organization authorized by the

Director General may refer to any authorities under any written laws for the verification of the loss of employment in relation to any claim for benefits by an insured person under this Act.

(3)

If the Organization determines that loss of employment has not occurred, the claim for benefits shall be rejected and the claim for benefits shall be deemed to have never been made by the insured person.

Determination on contributions qualifying conditions

Section 32

(a)

the insured person fulfils the contributions qualifying conditions in respect of the claim for benefits as specified in the Fourth Schedule; and

(b)

the insured person has not attained the minimum retirement age, on the date he lost his employment.

(2)

For the purpose of calculating the required number of monthly contributions, the contribution payable for the month the insured person has lost his employment shall be taken into account irrespective of whether wages for the month are paid to the insured person or not.

(3)

If before an insured person lost his employment he receives monthly temporary disablement benefits under the Employees’ Social

Security Act 1969 and the employer does not pay any wages to the insured person—

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(a)

the monthly contribution shall be deemed to have been made in respect of the insured person during the period he receives the temporary disablement benefits; and

(b)

the period in which the insured person receives the temporary disablement benefits shall be calculated as part of the eligibility period.

(4)

If an insured person has made any claim for benefits and the claim for benefits has been approved by the Organization under section 33

and thereafter the insured person makes a subsequent claim for benefits in respect of another loss of employment, the contributions paid by such employer in respect of which the loss of employment relates shall be calculated for the purpose of the subsequent claim in accordance with the contributions qualifying conditions as specified in the Fourth

Schedule.

(5)

The number of monthly contributions which has been taken into account for the purpose of determining the contributions qualifying conditions in respect of a claim for benefits by an insured person shall not be taken into account for any subsequent claim for benefits by such insured person.

Approval of claim for benefits

Section 33

(a)

in the case where the contributions qualifying conditions is fulfilled, the Organization shall approve the claim for benefits; and

(b)

in the case where the contributions qualifying conditions is not fulfilled, the Organization shall reject the claim for benefits and the claim for benefits shall be deemed to have never been made by the insured person.

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(2)

The Organization shall notify its decision made under subsection (1) to the insured person.

(3)

After approving the claim for benefits under paragraph (1)(a), the Organization shall determine the relevant benefits to be provided to the insured person.

Job search allowance

Section 34

(a)

at the rate as specified in the Third Schedule; and

(b)

for the period which shall be in accordance with the contributions qualifying conditions in respect of the claim for benefits by the insured person as specified in the

Fourth Schedule.

(2)

The payment for the job search allowance shall be made by the

Organization immediately after the waiting period in such manner as prescribed.

(3)

If an insured person has attained the minimum retirement age, the payment for the job search allowance shall continue to be paid to the insured person if the loss of employment occurs before the minimum retirement age.

(4)

An insured person shall not be in any employment during the period of receiving the job search allowance.

(5)

If an insured person accepts an offer of employment by any employer during the period of receiving the job search allowance, the insured person shall notify the Organization within seven days from the date of acceptance of the offer.

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(6)

Any person who contravenes subsection (4) or (5) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Early re-employment allowance

Section 35

(a)

accepts an offer of employment and reports duty for work within the waiting period;

(b)

accepts an offer of employment within the waiting period but reports duty for work within the period of receiving a job search allowance; or

(c)

accepts an offer of employment and reports duty for work within the period of receiving a job search allowance, the insured person shall be entitled to an early re-employment allowance at the rate as specified in the Third Schedule in such manner as prescribed.

(2)

If an insured person is entitled to an early re-employment allowance in accordance with paragraph (1)(b) or (c)—

(a)

the insured person shall be paid the early re-employment allowance on the month following the month the insured person has reported duty for work with an employer; and

(b)

the insured person shall be paid the job search allowance for the month in which the insured person reported duty for work.

(3)

In the case where an insured person accepts an offer of employment and reports duty for work within the waiting period, he may elect whether to accept the early re-employment allowance or not.

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(4)

If an insured person elects not to accept the early re-employment allowance under subsection (3), the contributions qualifying conditions in respect of the insured person shall not be affected and the claim for benefits shall be deemed to have never been made by the insured person.

(5)

No early re-employment allowance shall be paid by the

Organization to an insured person after the period of receiving job search allowance expires.

Reduced income allowance

Section 36

(a)

the insured person shall be entitled to a reduced income allowance for each loss of employment—

(i)

at the rate as specified in the Third Schedule; and

(ii)

for the period which shall be in accordance with the contributions qualifying conditions in respect of the claim for benefits by the insured person as specified in the Fourth Schedule; and

(b)

the insured person shall not be entitled to a job search allowance, a training allowance or an early re-employment allowance.

(2)

The reduced income allowance shall be paid lump sum to the insured person.

(3)

If an insured person who has two or more employments at the same time—

Employment Insurance System 33

(a)

has lost one or more of his employments, whether on the same date or not, but has not lost all of the employments;

or

(b)

has lost all of the employments on the same date, each claim for benefits in respect of each loss of employment shall be treated as a separate claim for the purpose of determining the contributions qualifying conditions in respect of that insured person.

(4)

If an insured person who has two or more employments has lost all of the employments on the same date, he shall be entitled to one job search allowance for one loss of employment and a reduced income allowance for the other loss of employment.

(5)

In relation to his entitlement to the job search allowance under subsection (4), the insured person may elect the loss of employment in respect of which the job search allowance shall be paid.

(6)

If an insured person who has two or more employments has lost two or more of the employments on the same date, or all of the employments on the same date, the required number of monthly contributions—

(a)

shall be calculated based on the number of monthly contributions made by the employer in respect of which the loss of employment relates; and

(b)

shall not be based on the number of monthly contributions made by any or all of the employers in respect of the insured person.

(7)

If an insured person has lost his last employment and prior to that loss of employment he has been employed by two or more employers and has lost all the employments, the contributions made by the two or more employers may be taken into account in calculating the required number of monthly contributions in respect of the first-mentioned loss of employment provided that the contributions

34 Laws of Malaysia made by the two or more employers have not been taken into account for the calculation of any reduced income allowance.

Training allowance and training fee

Section 37

(a)

within the period the insured person receives the job search allowance;

(b)

within the period of not more than twelve months after the period the insured person receives the job search allowance; or

(c)

within the period of six months after accepting an offer of employment and reporting duty for work.

(2)

The Organization may approve the application under subsection (1) subject to such conditions as determined by the

Organization.

(3)

An insured person who attends any training provided by a training provider approved by the Organization shall be entitled to a training allowance which shall not be more than six months from the date as determined by the Organization at the rate as specified in the

Third Schedule and in such manner as prescribed.

(4)

The maximum period of training in respect of an insured person shall be equivalent to the period of payment for the job search allowance which he is entitled to.

(5)

Any training fees charged to the insured person by a training provider under this section shall be borne by the Organization and the amount of the training fees shall be as specified in the Third Schedule.

Employment Insurance System 35

(6)

The Organization shall pay the training fees to the training provider who provides the training to the insured person.

(7)

For the purpose of subsections (5) and (6), “training fees”

means all costs relating to the training of an insured person including meals and materials for the training.

Benefits not transferable or attachable

Section 38

(2)

No benefits payable under this Act shall be liable to attachment by any decree or order of any court.

Payment of benefits to dependant

Section 39

(a)

after the insured person has made a claim for benefits under this Act; or

(b)

during the period which he is entitled to or is receiving a job search allowance, an early re-employment allowance, a reduced income allowance or a training allowance under this Act, the job search allowance, early re-employment allowance, reduced income allowance or training allowance shall be paid to his dependants in such manner as determined by the Organization.

(2)

If an insured person dies, is in coma or is of unsound mind in accordance with subsection (1), any training allowance that has been overpaid to the insured person for the remaining duration of his training after such circumstances occur shall not be recovered by the Organization.

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Payment of training fee upon death of insured person

Section 40

Upon the death of an insured person who is undergoing any training, the Organization shall pay the training fee to any training provider for the training that the insured person has attended as agreed between the Organization and the training provider.

Section 41

Suspension and termination of benefits

(a)

the insured person has furnished false, untrue or incorrect particulars, documents or returns at the time of the claim for benefits is made or during the claim for benefits is being considered by the Organization under this Act;

(b)

the insured person is employed by any employer within the period of receiving the job search allowance; or

(c)

the insured person has contravened any provisions of this

Act or the regulations made under this Act.

(2)

The Organization may suspend the payment of any benefit for a period of not more than sixty days.

(3)

If the Organization decides to suspend any benefit received by an insured person under subsection (1), the Organization shall carry out an inquiry in respect of the suspension.

(4)

After completion of the inquiry, if the Director General is satisfied that—

(a)

the insured person has not committed any of the acts referred to in subsection (1), the payment of any benefits suspended under subsection (3) shall forthwith be resumed; or

Employment Insurance System 37

(b)

the insured person has commited any of the acts referred to in subsection (1), the payment of any benefits suspended under subsection (3) shall be terminated.

Repayment of benefits improperly received

Section 42

(2)

The amount of the benefit received under subsection (1) shall be recovered as a debt due to the Organization.

(3)

Notwithstanding subsections (1) and (2), where any person has received any benefit under this Act which he is not entitled to, and subsequently becomes entitled to any other benefit under this Act, the

Organization may set off the amount of the benefit which he is not entitled to against the amount of the other benefits which he becomes entitled to.

Rights of insured person under other written laws

Section 43

(a)

any representation for reinstatement of employment under the Industrial Relations Act 1967 [Act 177];

(b)

any claim for termination or lay-off benefits payment under the Employment Act 1955 [Act 265], the Labour

Ordinance of Sabah [Sabah Cap. 67] and the Labour

Ordinance of Sarawak [Sarawak Cap. 76]; and

38 Laws of Malaysia

(c)

any complaint relating to premature retirement under the

Minimum Retirement Age Act 2012.

(2)

If an insured person makes a claim for benefits to the

Organization under this Act and also makes a representation, claim or complaint under paragraph (1)(a), (b) or (c), as the case may be, the

Organization shall hold the determination on the question of loss of employment in respect of the claim for benefits until the insured person’s representation, claim or complaint under paragraph (1)(a), (b)

or (c) has been resolved.

Section 44

(2)

The insured person—

(a)

shall comply with any direction given by the Organization in respect of the re-employment placement programme;

(b)

shall be a person who is able and available to work, and actively seeking for work; and

(c)

shall undergo any training as determined by the

Organization.

(3)

If there is any offer of employment from any employer that is suitable to the insured person, the Organization shall inform such offer to the insured person.

Employment Insurance System 39

(4)

The insured person may accept the offer of employment under subsection (3) and shall inform the Organization of acceptance of the offer.

(5)

The insured person may refuse the offer of employment under subsection (3) if he has reasonable grounds for such refusal, and he shall inform the Organization of his refusal to accept the offer.

(6)

The Organization shall determine whether the refusal to accept the offer of employment under subsection (5) is based on reasonable grounds or otherwise.

(7)

If the Organization is satisfied that the refusal to accept the offer of employment under subsection (5) is based on unreasonable grounds—

(a)

the insured person shall lose his entitlement to receive any benefit under this Act; and

(b)

in the case where the insured person is receiving any benefit under this Act, the Organization shall terminate the payment of such benefit.

Power to establish centre or institute

Section 45

The Organization may establish any centre or institute for the purpose of providing the re-employment placement programme to insured persons.

FINANCIAL PROVISIONS

Employment Insurance Fund

Section 46

(2)

The Fund shall consist of—

(a)

contributions payable by employers and insured persons;

(b)

rents, interests, dividends and any other incomes derived from the assets of the Fund;

(c)

sums accruing to the Fund under this Act including the repayment of benefits;

(d)

moneys borrowed by the Organization under this Act;

(e)

fees and any interest on arrears of contributions imposed by or payable to the Organization under this Act;

(f)

moneys derived as income from the investment by the

Organization under this Act;

(g)

moneys received by the Organization by way of grants, donations and gifts for the purpose of this Act;

(h)

moneys derived from the sale, disposal, lease or hire of, or any other dealing with, any property, mortgage, charge or debenture transferred to, vested in or acquired by the

Organization;

(i)

other moneys and properties which may, in any manner, become payable to or vested in the Organization in respect of the performance of its functions and the exercise of its powers;

(j)

any costs paid to or recovered by the Organization in any settlement of action or proceedings, civil or criminal; and

(k)

all other moneys and properties lawfully received by the

Organization.

Employment Insurance System 41

Expenditure to be charged on Fund

Section 47

The Fund shall be expended for the following purposes:

(a)

the payment of benefits;

(b)

the payment of training fees to training providers in relation to the cost of training given by training providers to insured persons;

(c)

the payment of any expenses properly incurred for the re-employment placement programme in respect of insured persons including expenses incurred for collaboration with any institution;

(d)

the payment of expenses for the evaluation and impact study of the System;

(e)

the establishment and maintenance of centres or institutes for the purposes of re-employment placement programme;

(f)

the payment of expenses or costs incurred by the

Organization for the establishment of the Appellate Board for the purpose of this Act;

(g)

the payment of expenses or moneys required to satisfy any judgment, decision or award by any court or tribunal against the Organization, the Chairman of the Board,

Director General, Deputy Directors General, any of the members of the Board, Committee or committees established under section 9, Employment Services Officer, and officers and servants of the Organization in respect of any act, neglect or default done or committed in the performance of the functions or the exercise of the powers of the Organization under this Act;

(h)

the payment of allowances and other expenses to the members of the Board, the Committee and committees established under section 9;

42 Laws of Malaysia

(i)

the payment of legals fees and costs relating to any civil or criminal proceedings brought, instituted or maintained by or against the Organization under this Act;

(j)

the repayment of moneys borrowed under this Act and the interest or profit due on the borrowed moneys;

(k)

the establishment or taking over of a company under this

Act and its maintenance;

(l)

the payment of other expenses and expenditure as may be permitted by this Act or any regulations made under this

Act, or incurred in the performance of the functions or the exercise of the powers of the Organization.

Expenditure on administration

Section 48

(a)

paying for salaries, bonus, leave and transfer expenses, travelling and compensatory allowances, gratuities and compassionate allowances, contributions to benefit fund, welfare and recreation of the officers and servants of the

Organization including the granting of loans and advances, and expenditure in respect of offices and payment of other services provided under this Act or any regulations made under this Act;

(b)

paying for fees and other remunerations to any auditor, actuary, agent, technical adviser, banker, stockbroker, surveyor, consultant or any other persons employed to carry into effect the purpose of this Act;

Employment Insurance System 43

(c)

purchasing or hiring equipment, machinery and any other things including renting of any building or premises in the performance of its functions and in the exercise of its powers under this Act or any regulations made under this

Act.

(2)

The Board may, subject to such conditions, limitations or restrictions as the Board thinks fit, delegate to the Chairman of the

Board, Director General, Deputy Directors General, any of the members of the Board, Committee or committees established under section 9, Employment Services Officer, or officers and servants of the

Organization, the authority to sanction expenditure from the Fund or any other moneys vested in and under the control of the Board up to such limit as the Board may determine.

Power to accept grants, donations, etc.

Section 49

The Organization may accept grants, donations, gifts or bequests made to or in favour of the Fund.

Section 50

Power to invest

(2)

The moneys in the Fund shall, in so far as the moneys are not immediately required to be expended by the Organization under this

Act or any regulations made under this Act, be invested subject to such

44 Laws of Malaysia terms and conditions as determined by the Minister after consultation with the Minister of Finance as follows:

(a)

in investments or securities authorized for the investment of trust funds by any written law;

(b)

in investment in shares and debentures in any public company the prices of which are quoted or sought to be quoted on the stock exchange established in Malaysia;

(c)

in such other investments or securities as the Board may decide based on the recommendation by the Committee.

(3)

The investments made under subsection (2) may be varied, transposed or realized from time to time.

(4)

The Minister may at any time, after consultation with the

Minister of Finance, direct the vacation in part or in whole, or prohibit investment, in any security.

(5)

The power to invest under subsection (2) shall vest in the

Board.

(6)

The Organization shall, with the approval of the Board and after consultation with the Minister of Finance, determine the procedure for investment of the Fund including its transfer or realization, the bank in which the Fund may be deposited, the raising and repayment of loans and the financial control and procedures.

Power to borrow

Section 51

(2)

No moneys from any fund administered by the Organization under any other written law may be utilized for the purpose of borrowing under subsection (1).

Annual estimates

Section 52

Employment Insurance System 45

(2)

The budget shall be submitted for the approval of the Minister before such date as he may fix.

Accounts and reports

Section 53

The Organization shall cause proper accounts of the Fund and proper records of its activities to be kept and shall, as soon as practicable after the end of each financial year, cause to be prepared for that financial year—

(a)

a statement of accounts of the Organization which shall include a balance sheet and an account of income and expenditure; and

(b)

a report of the works and activities of the Organization.

Audit

Section 54

(2)

The Auditor General or any person authorized by him shall at all reasonable times have access to the books, accounts and other

46 Laws of Malaysia documents of the Organization and may, for the purpose of an audit, require any explanation and information from, or examine, any officer and servant of the Organization.

(3)

The Board shall forward to the Minister a copy of the auditor’s report and any observations together with a copy of the audited accounts of the Organization.

(4)

The Minister may direct the Board to send a copy of the auditor’s report and any statement of accounts to any Government department and such statement of accounts to the Auditor General as necessary.

Annual report

Section 55

The Board shall submit to the Minister the annual report of the works and activities of the Organization before 30 June the following year unless otherwise extended by the Minister.

Section 56

Annual report and audited accounts to be laid

The Board shall cause the annual report and the audited accounts of the Organization to be laid before each House of Parliament.

Section 57

Valuation of assets and liabilities

(2)

Notwithstanding subsection (1), the Minister may direct that such actuarial review and the valuation of the assets and liabilities to be made at any other time as he considers necessary.

Employment Insurance System 47

Imposition of surcharge

Section 58

(a)

is or was responsible for any improper payment of moneys from the Fund or for any payment of such moneys which is not duly vouched;

(b)

is or was responsible for any deficiency in, or for the destruction of, any moneys, securities, stores or other properties of the Organization;

(c)

being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

(d)

has failed to make any payment, or is or was responsible for any delay in the payment of money from the Fund to any person to whom such payment is due under any contract, agreement or arrangement entered into between that person and the Organization.

(2)

The Board shall, before a person is surcharged under subsection (1), serve on him a notice in writing calling on him to show cause why he should not be surcharged.

(3)

If a satisfactory explanation is not received within thirty days from the date of service of the notice under subsection (2), the Board may—

(a)

in the case of paragraphs (1)(a) and (b), surcharge against the person a sum not exceeding the amount not collected, or of the improper payment made, or of the deficiency in the value of, or loss of, the moneys, securities, stores or other properties of the Organization; and

(b)

in the case of paragraphs (1)(c) and (d), surcharge against the person such sum as the Board thinks fit.

48 Laws of Malaysia

(4)

The Board shall cause the Director General to be notified of any surcharge made under subsection (1) and the Director General shall thereupon notify the person surcharged.

(5)

Notwithstanding subsections (3) and (4), the Board may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and the Board shall cause the

Director General to be notified of the withdrawal and the Director

General shall thereupon notify the person surcharged.

(6)

The amount of any surcharge made under subsection (3) and not withdrawn under subsection (5) shall be a civil debt due to the

Organization from the person surcharged and may be sued for and recovered in any court at the suit of the Organization and may also if the Board so directs be recovered by deduction—

(a)

from the salary of the person surcharged; or

(b)

from the pension of the person surcharged, by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension of that person, as the case may be.

SOCIAL SECURITY APPELLATE BOARD

Matters to be decided by Appellate Board

Section 59

(a)

whether any person is an employee within the meaning of this Act;

Employment Insurance System 49

(b)

whether an employer or employee is liable to pay contribution;

(c)

whether any activity carried out by any person is an industry within the meaning of this Act;

(d)

whether an insured person has lost an employment in accordance with this Act;

(e)

the wages or assumed monthly wages of an insured person for the purposes of this Act;

(f)

the rate of contribution payable by an employer in respect of his employee;

(g)

whether a person is or was an employer in respect of any employee;

(h)

the entitlement of any insured person to any benefit including the amount and duration of the benefit;

(i)

any claim by the Organization to recover any arrears of contributions from an employer;

(j)

any decision, order or direction made or issued by the

Organization under this Act;

(k)

any claim by the Organization against any person to recover any benefit which has been paid out not in accordance with this Act;

(l)

any claim by the Organization against a training provider for any payment made by the Organization which has been paid to the training provider by mistake or fraudulently claimed by the training provider; or

(m)

any other matter which is in dispute—

(i)

between an employer and the Organization;

50 Laws of Malaysia

(ii)

between an insured person and the Organization;

(iii)

between a training provider and the Organization;

(iv)

between an insured person and an employer; or

(v)

between an insured person or employer and a training provider.

(2)

Any question, dispute, claim or appeal by an insured person, employer, training provider or any person in relation to any matter under this Act shall be filed to the Appellate Board for decision.

(3)

No civil court shall have jurisdiction to decide or deal with any question, dispute, claim or appeal referred to in subsection (1), or to adjudicate on any liability which is to be decided by the Appellate

Board under this Act or any regulations under this Act.

Institution of proceedings, etc.

Section 60

(2)

The Chairman of the Appellate Board may, upon application made by the parties to the Appellate Board, transfer any matter pending before him in a State or area to any other Appellate Board in another

State or area and shall give his reasons for allowing or not allowing the application for transfer.

(3)

The Appellate Board to which any matter or proceedings is transferred under subsection (2) shall continue to decide on the matter or proceedings as if the matter or proceedings had been originally instituted in such Appellate Board.

Employment Insurance System 51

Commencement of proceedings

Section 61

(2)

Every application under subsection (1) shall be made within sixty days from the date on which the cause of action arises.

(3)

For the purpose of subsection (2)—

(a)

the cause of action in respect of a claim for benefits shall be deemed to arise from the date the insured person received the written decision of the Organization on such claim; and

(b)

the cause of action in respect of any claim by the

Organization for recovering contributions from an employer shall be deemed to arise from the date of the evidence of contributions payable is due to be received by the Organization.

Powers of Appellate Board

Section 62

(2)

All costs incidental to any proceedings before the Appellate

Board is subject to the discretion of the Appellate Board.

(3)

An order of the Appellate Board shall be enforceable as if it was a judgment of a Sessions Court.

52 Laws of Malaysia

Representation in proceedings before Appellate Board

Section 63

Any person may, at any proceedings before the Appellate Board except the appearance of the person for the purposes of his examination as a witness, appear personally or be represented by a legal practitioner, or by any person authorized in writing by the person, or where there is no authorization in writing, by any person allowed by the Appellate Board to appear on behalf of the person.

Section 64

Reference to High Court

The Appellate Board may submit any question of law for the decision of the High Court and the Appellate Board shall decide the question pending before the Appellate Board in accordance with such decision.

Section 65

Appeal

(2)

The appeal referred to in subsection (1) shall be made within sixty days from the date of the written order is made by the Appellate Board.

Stay of payment pending appeal

Section 66

Where the Organization has made an appeal against an order of the Appellate Board, the Appellate Board may, and if directed by the

High Court shall, pending the decision of the appeal, withhold the order appealed against relating to the payment of any sum of money.

Employment Insurance System 53

EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND

INVESTIGATION

Appointment and functions of Employment Services Officer

Section 67

(a)

to verify on loss of employment;

(b)

to carry out the re-employment placement programme including job search, job counselling, job matching, job placement, career advising and vocational training;

(c)

to collect, analyse and provide labour market information;

(d)

to undertake and coordinate studies on labour and labour market issues, including social security;

(e)

to perform any other functions as determined by the

Organization from time to time.

(2)

The Director General may give any direction to any

Employment Services Officer as he thinks necessary to ensure that the functions of the Employment Services Officer is performed in accordance with this Act.

Power to examine training

Section 68

The Employment Services Officer may examine any training provided by a training provider including the following:

(a)

any premises and facilities used for the training whether in compliance with any directions given by the Organization under this Act;

54 Laws of Malaysia

(b)

any training programme and duration of the training whether conducted as agreed by the Organization;

(c)

any document and record relating to the attendance of an insured person; and

(d)

any document and record relating to claims for training fees submitted by the training provider to the

Organization.

Powers of enforcement, inspection and investigation

Section 69

(2)

The Employment Services Officer may examine any person if the Employment Services Officer has reasonable grounds to believe that the person has relevant information or document relating to any industry.

Power to require information and conduct inspection

Section 70

(a)

to provide such information to the Director General or any officer of the Organization authorized by the Director

Employment Insurance System 55

General within such time as may be specified in the notice;

or

(b)

to attend personally before the Director General or any officer of the Organization authorized by the Director

General and to produce for examination any book, account, record and other documents including an electronic record as the Director General or any officer of the Organization authorized by the Director General deems necessary.

(2)

Where it appears to any Magistrate upon written information on oath and after such enquiry as he thinks necessary that there is reasonable grounds to believe that in any place or building there is any book, account, record or other documents including an electronic record the production of which has been required under subsection (1)

but has not been produced, such Magistrate may issue a warrant authorizing the Director General or any officer of the Organization authorized by the Director General, with or without assistance, enter the place or building, by force if necessary, and inspect the place or building, seize, take possession of and detain any such book, account, record or other documents including electronic record.

(3)

Any person who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Obstructing, etc., Director General, Deputy Directors General and

Employment Services Officer

Section 71

Any person who—

(a)

fails to comply with any direction given by the Director

General, or any Deputy Director General or Employment

Services Officer while exercising his powers and performing his functions under this Act or any regulations made under this Act; or

56 Laws of Malaysia

(b)

in any way assaults, hinders or obstructs the Director

General, or any Deputy Director General or Employment

Services Officer while exercising his powers and performing his functions under this Act or any regulations made under this Act, commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Fraud or forgery in connection with payment of contributions or claim for benefits

Section 72

Any person who commits or conspires to commit any act of fraud or forgery in connection with the payment of contributions or a claim for benefits commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Section 73

Giving false or misleading information or document

(a)

provides or causes any person to provide any information or document to the Organization which he knows or has reasons to believe is false or misleading; or

(b)

makes in writing or signs any declaration, form, report, certificate or other documents required by this Act or any regulations made under this Act which is untrue or incorrect in any material particular, commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Employment Insurance System 57

Court’s order in respect of contributions or benefits due and payable to Organization

Section 74

(2)

The amount of any contribution or benefit referred to in subsection (1) shall be certified by an officer of the Organization authorized by the Director General to be due from such person prior to the date of such finding of guilt and the certification of the authorized officer shall be prima facie evidence of the amount due and payable.

(3)

Any contribution or benefit referred to in subsection (1) shall be recoverable in the same manner as, and shall be appealable as if it was, an order for payment of compensation under section 426 of the

Criminal Procedure Code, except where the court directs payment of the sum of money to be made by instalments, the court shall direct that the sum of money be paid in not more than six instalments within six months.

Copy of entry to be prima facie evidence, and production of documents

Section 75

(2)

The court may, upon application by the Public Prosecutor, require any person to produce any document which is in his possession and relevant to the case, and such document shall be produced within the time specified by the court.

58 Laws of Malaysia

Prosecution

Section 76

No prosecution shall be instituted for any offence under this Act or any regulations made under this Act except by or with the consent in writing of the Public Prosecutor.

Section 77

Compounding of offences

(a)

any offence under this Act or any regulations made under this Act as an offence which may be compounded;

(b)

the criteria for compounding such offence; and

(c)

the method and procedure for compounding such offence.

(2)

The Director General or any officer of the Organization authorized in writing by the Director General may, with the consent in writing of the Public Prosecutor, at any time before a charge is being instituted, compound any offence prescribed as an offence which may be compounded by making a written offer to the person reasonably suspected of having committed the offence to compound the offence upon payment to the Director General of a sum of money not exceeding fifty per centum of the amount of the maximum fine to which the person would have been liable to if he had been convicted of the offence, within such time as may be specified in the written offer.

(3)

An offer under subsection (2) may be made at any time after the offence has been committed but before any prosecution for it has been instituted, and where the amount specified in the offer is not paid within the time specified in the offer, or such extended time as the

Director General may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

Employment Insurance System 59

(4)

Where an offence has been compounded under subsection (2), no prosecution shall be instituted in respect of the offence against the person to whom the offer to compound was made, and any document or thing seized in connection with the offence may be released by the

Director General, subject to such terms as the Director General thinks fit.

(5)

All sums of moneys received by the Director General under this section shall be paid into and form part of the Fund.

GENERAL

Duty to keep returns, particulars, etc.

Section 78

(2)

The Employment Services Officer may request the employer to submit any return, particulars, register book or record referred to in subsection (1).

(3)

Any person who contravenes subsection (1) or fails to comply with the request under subsection (2) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Appointment of collection agent

Section 79

The Organization may appoint such number of collection agents for the purpose of recovery of any debt due to the Organization.

60 Laws of Malaysia

Section 80

Engagement of auditors, actuaries, etc.

The Organization may, subject to such terms and conditions, engage such auditors, actuaries, technical advisers, bankers, stockbrokers, surveyors, consultants or any other persons as the

Organization deems fit to assist the Organization in the performance of its functions.

Section 81

Public servant

The Director General, Deputy Directors General, all members of the Board, the Committee or committee established under section 9,

Employment Services Officers and officers and servants of the

Organization, while discharging their duties under this Act or any regulations made under this Act, shall be deemed to be a public servant within the meaning of the Penal Code [Act 574].

Section 82

Power of Organization to establish or take over companies

(2)

The Organization may give directions to the company referred to in subsection (1) on matters relating to the administration, finance and operation of the company which are consistent with the provisions of this Act, and such company shall give effect to the directions.

Employment Insurance System 61

Power to exempt

Section 83

The Minister may, by order published in the Gazette and subject to such conditions specified in the order, exempt—

(a)

any industry or class of industries; or

(b)

any employer or employee, or class of employers or employees, from any of the provisions of this Act or any regulations made under this Act.

Power to amend schedule

Section 84

The Minister may, by order published in the Gazette, amend the

First Schedule.

Section 85

Power to make regulations

(2)

Without prejudice to the generality of subsection (1), regulations may be made for all or any of the following purposes:

(a)

all matters relating to contributions and benefits including the manner in which the contribution or benefit to be calculated, and the procedure for making a claim for benefits;

(b)

the procedure for the determination of loss of employment and contributions qualifying conditions;

(c)

the conditions which shall be complied with by an insured person who is receiving any benefit;

62 Laws of Malaysia

(d)

all matters relating to the training of insured persons;

(e)

all matters relating to training providers including the duties of the training providers, procedure for making a claim for training fees and documents to be provided or maintained by the training provider;

(f)

the procedure of any proceedings before the Appellate

Board;

(g)

all matters relating to the re-employment placement programme;

(h)

the procedure for the registration of industries and employees;

(i)

any other matters to be prescribed under this Act.

(3)

Any regulations made under this Act may prescribe an act or omission in contravention of the regulations to be an offence and may prescribe for penalties of a fine not exceeding ten thousand ringgit or imprisonment for a term not exceeding two years or both for such offence.

Disposal of documents after more than three years

Section 86

(2)

Where a paper-based document has been copied in accordance with subsection (1), the Director General may authorize the disposal of the paper-based document after the expiry of a period of three years from the making of such electronic copy.

(3)

A copy of the paper-based document kept on an electronic medium in accordance with subsection (1) shall be admissible as

Employment Insurance System 63

evidence of any fact stated therein in accordance with section 90A of the Evidence Act 1950 [Act 56].

Recommendations to review System

Section 87

(2)

The recommendations of the Board referred to in subsection (1)—

(a)

shall be accompanied by the actuarial report;

(b)

shall take into account the social policy of the

Government; and

(c)

may include—

(i)

a proposal for a new rate of contributions;

(ii)

a proposal for changes in the rates of the job search allowance, early re-employment allowance, reduced income allowance and training allowance and the amount of training fee; and

(iii)

a proposal for new types of benefits.

Offences by body corporate, etc.

Section 88

(a)

in the case of a body corporate, any person who at the time of the commission of the offence was a director, manager, secretary or other similar officer of the body corporate;

64 Laws of Malaysia

(b)

in the case of a partnership, every partner in the partnership at the time of the commission of the offence;

or

(c)

in the case of a society, every office-bearer of the society at the time of the commission of the offence, may be charged severally or jointly in the same proceedings with the body corporate, partnership or society.

(2)

If the body corporate, partnership or society is found to have committed the offence, the director, manager, secretary or other similar officer of the body corporate, the partner in the partnership or the office-bearer of the society referred to in subsection (1) shall be deemed to have committed that offence unless, having regard to the nature of his functions in that capacity and to all circumstances, he proves—

(a)

that the offence was committed without his knowledge, consent or connivance; and

(b)

that he had taken all reasonable precautions and exercised due diligence to prevent the commission of the offence.

Organization may deal with authorized person

Section 89

(2)

The Organization may refuse to entertain any representation made by any other person.

Employment Insurance System 65

Electronic submission of documents

Section 90

(2)

The conditions and specifications under which the returns, particulars, records, notices, reports, registers or other documents referred to in subsection (1) are to be submitted or furnished shall be as determined by the Organization.

(3)

The returns, particulars, records, notices, reports, registers or other documents referred to in subsection (1) shall be deemed to have been submitted or furnished by a person to the Organization on the date the acknowledgment of receipt of such returns, particulars, records, notices, reports, registers or other documents are transmitted electronically by the Organization to the person.

(4)

The acknowledgment of receipt by the Organization, returns, particulars, records, notices, reports, registers or other documents submitted or furnished pursuant to subsection (3) shall be admissible as evidence in any proceedings.

66 Laws of Malaysia

FIRST SCHEDULE

[Section 2]

Section 1

Any person whose employment is of casual nature and who is employed otherwise than for the purposes of the employer’s industry.

Section 2

(Deleted by P.U. (A) 249/2021).

Section 3

Any person who is permitted to win minerals or produce of any kind from or on the land of another and who, in consideration of such permission, gives a proportion of the minerals or produce so won to that other person or pays to him the value of such proportion.

Section 4

(Deleted by P.U. (A) 145/2018).

Section 5

Any person detained in any prison, Henry Gurney School, approved school, place of detention, mental hospital or leper settlement.

Section 6

Any member of the public service of the Federation and the States.

Section 7

Any employee of the local authority or statutory body.

Section 8

Any employee who has not attained the age of eighteen years or who has attained the age of sixty years.

Section 9

Any employee who has attained the age of fifty-seven years and in respect of whom no contributions were payable under this Act before he attained the age of fifty-seven years.

Section 10

Any foreign employee, except—

(a)

a non-citizen who is residing permanently in Malaysia and issued with an identity card as described under paragraph 5(3)(b) of the National

Registration Regulations 1990 [P.U. (A) 472/1990];

(b)

a person who—

(i)

lawfully enters Malaysia under a valid immigration pass or permit;

(ii)

is allowed to reside in Malaysia for a period of twelve months and above; and

(iii)

is issued with an identity card as described under paragraph 5(3)(c) of the National Registration Regulations 1990; and

Employment Insurance System 67

(c)

a person who is born in Malaysia but whose citizenship status cannot be determined, and issued with an identity card as described under paragraph 5(3)(c) of the National Registration Regulations 1990.

SECOND SCHEDULE

[Section 18]

RATES OF CONTRIBUTION

Section 1

For the purposes of this Schedule—

(a)

“monthly wages” means the wages payable to an employee in respect of any wage period ending in the month; and

(b)

“wage period” means the period in respect of which the wages earned by an employee are payable.

Section 2

Contributions shall be calculated based on the monthly wages and shall be at the following rates:

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Total

Section 1

Wages up to RM30 … … …

5 sen

10 sen

Section 2

When wages exceed RM30

but not exceed RM50

10 sen

20 sen

Section 3

When wages exceed RM50

but not exceed RM70

15 sen

30 sen

Section 4

When wages exceed RM70

but not exceed RM100

20 sen

40 sen

Section 5

When wages exceed RM100

but not exceed RM140

25 sen

50 sen

Section 6

When wages exceed RM140

but not exceed RM200 35 sen

35 sen

70 sen

68 Laws of Malaysia

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Section 7

Total

but not exceed RM300

50 sen

RM1.00 8.

When wages exceed RM300

but not exceed RM400

70 sen

RM1.40 9.

When wages exceed RM400

but not exceed RM500

90 sen

RM1.80 10.

When wages exceed RM500

but not exceed RM600

RM1.10

RM2.20 11.

When wages exceed RM600

but not exceed RM700

RM1.30

RM2.60 12.

When wages exceed RM700

but not exceed RM800

RM1.50

RM3.00 13.

When wages exceed RM800

but not exceed RM900

RM1.70

RM3.40 14.

When wages exceed RM900

but not exceed RM1,000

RM1.90

RM3.80 15.

When wages exceed

RM1,000 but not exceed

RM1,100

RM2.10

RM4.20 16.

When wages exceed

RM1,100 but not exceed

RM1,200

RM2.30

RM4.60 17.

When wages exceed

RM1,200 but not exceed

RM1,300

RM2.50

RM5.00 18.

When wages exceed

RM1,300 but not exceed

RM1,400

RM2.70

RM5.40

Employment Insurance System 69

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Total

Section 19

When wages exceed

RM1,400 but not exceed

RM1,500

RM2.90

RM5.80 20.

When wages exceed

RM1,500 but not exceed

RM1,600

RM3.10

RM6.20 21.

When wages exceed

RM1,600 but not exceed

RM1,700

RM3.30

RM6.60 22.

When wages exceed

RM1,700 but not exceed

RM1,800

RM3.50

RM7.00 23.

When wages exceed

RM1,800 but not exceed

RM1,900

RM3.70

RM7.40 24.

When wages exceed

RM1,900 but not exceed

RM2,000

RM3.90

RM7.80 25.

When wages exceed

RM2,000 but not exceed

RM2,100

RM4.10

RM8.20 26.

When wages exceed

RM2,100 but not exceed

RM2,200

RM4.30

RM8.60 27.

When wages exceed

RM2,200 but not exceed

RM2,300

RM4.50

RM9.00 28.

When wages exceed

RM2,300 but not exceed

RM2,400

RM4.70

RM9.40

70 Laws of Malaysia

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Total

Section 29

When wages exceed

RM2,400 but not exceed

RM2,500

RM4.90

RM9.80 30.

When wages exceed

RM2,500 but not exceed

RM2,600

RM5.10

RM10.20 31.

When wages exceed

RM2,600 but not exceed

RM2,700

RM5.30

RM10.60 32.

When wages exceed

RM2,700 but not exceed

RM2,800

RM5.50

RM11.00 33.

When wages exceed

RM2,800 but not exceed

RM2,900

RM5.70

RM11.40 34.

When wages exceed

RM2,900 but not exceed

RM3,000

RM5.90

RM11.80 35.

When wages exceed

RM3,000 but not exceed

RM3,100

RM6.10

RM12.20 36.

When wages exceed

RM3,100 but not exceed

RM3,200

RM6.30

RM12.60 37.

When wages exceed

RM3,200 but not exceed

RM3,300

RM6.50

RM13.00 38.

When wages exceed

RM3,300 but not exceed

RM3,400

RM6.70

RM13.40

Employment Insurance System 71

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Total

Section 39

When wages exceed

RM3,400 but not exceed

RM3,500

RM6.90

RM13.80 40.

When wages exceed

RM3,500 but not exceed

RM3,600

RM7.10

RM14.20 41.

When wages exceed

RM3,600 but not exceed

RM3,700

RM7.30

RM14.60 42.

When wages exceed

RM3,700 but not exceed

RM3,800

RM7.50

RM15.00 43.

When wages exceed

RM3,800 but not exceed

RM3,900

RM7.70

RM15.40 44.

When wages exceed

RM3,900 but not exceed

RM4,000

RM7.90

RM15.80 45.

When wages exceed

RM4,000 but not exceed

RM4,100

RM8.10

RM16.20 46.

When wages exceed

RM4,100 but not exceed

RM4,200

RM8.30

RM16.60 47.

When wages exceed

RM4,200 but not exceed

RM4,300

RM8.50

RM17.00 48.

When wages exceed

RM4,300 but not exceed

RM4,400

RM8.70

RM17.40

72 Laws of Malaysia

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Total

Section 49

When wages exceed

RM4,400 but not exceed

RM4,500

RM8.90

RM17.80 50.

When wages exceed

RM4,500 but not exceed

RM4,600

RM9.10

RM18.20 51.

When wages exceed

RM4,600 but not exceed

RM4,700

RM9.30

RM18.60 52.

When wages exceed

RM4,700 but not exceed

RM4,800

RM9.50

RM19.00 53.

When wages exceed

RM4,800 but not exceed

RM4,900

RM9.70

RM19.40 54.

When wages exceed

RM4,900 but not exceed

RM5,000

RM19.80 55.

When wages exceed

RM5,000

THIRD SCHEDULE

[Sections 18, 34, 35, 36 and 37]

RATES OF BENEFITS

Section 1

The rates for the job search allowance shall be as follows:

(a)

eighty percent (80%) of the assumed monthly wages for the first month;

(b)

fifty percent (50%) of the assumed monthly wages for the second month;

Employment Insurance System 73

(c)

forty percent (40%) of the assumed monthly wages for the third and fourth months;

(d)

thirty percent (30%) of the assumed monthly wages for the fifth and sixth months.

Section 2

The rates for the early re-employment allowance shall be—

(a)

in the case where an insured person accepts an offer of employment and reports duty for work within the waiting period, twenty-five percent

(25%) of the total job search allowance which he is entitled to;

(b)

in the case where an insured person accepts an offer of employment within the waiting period but reports duty for work within the period of receiving a job search allowance, twenty-five percent (25%) of the total balance of the job search allowance remains unpaid; or

(c)

in the case where an insured person accepts an offer of employment and reports duty for work within the period of receiving a job search allowance, twenty-five percent (25%) of the total balance of the job search allowance remains unpaid.

Section 3

The rates for the reduced income allowance shall be as follows:

(a)

eighty percent (80%) of the assumed monthly wages for the first month;

(b)

fifty percent (50%) of the assumed monthly wages for the second month;

(c)

forty percent (40%) of the assumed monthly wages for the third and fourth months;

(d)

thirty percent (30%) of the assumed monthly wages for the fifth and sixth months.

Section 4

The training allowance—

(a)

shall be paid at the rate of twenty-five percent (25%) of the assumed monthly wages calculated on daily basis but shall be subject to a minimum of ten ringgit and a maximum of twenty ringgit per day; and

(b)

shall be paid monthly according to the number of training days attended by the insured person.

74 Laws of Malaysia

Section 5

The maximum amount of the training fee shall be four thousand ringgit.

Section 6

The assumed monthly wages shall be an amount equal to the amount of the monthly wages for each month for which the contributions have been paid or are payable within six consecutive months immediately preceding the month in which the loss of employment occurred, divided by the number of months for which contributions were paid or payable.

Section 7

For the purpose of determining the assumed monthly wages under paragraph 6—

(a)

in the case where the monthly wages are not paid to an insured person, the monthly wages of the insured person shall be an amount equal to the amount of the monthly minimum wages in accordance with the

Minimum Wages Order made under the National Wages Consultative

Council Act 2011 [Act 732]; and

(b)

in the case where an insured person receives the monthly temporary disablement benefit under the Employees’ Social Security Act 1969, the monthly wages of the insured person shall be the actual wages of the insured person prior to receiving the monthly temporary disablement benefit.

Section 8

The assumed monthly wages specified in paragraph 6 for each month shall be the amount specified below which shall correspond to the rate of contributions paid or payable for the month according to the Second Schedule:

ASSUMED MONTHLY WAGES

Actual monthly wages of the month

Total contribution

Corresponding assumed monthly wages for the month

Section 1

Wages up to RM30 … … … …

0 sen

Section 2

RM20

0 sen

RM40 3.

When wages exceed RM50 but not exceed RM70

30 sen

RM60

Section 4

When wages exceed RM70 but not exceed RM100 40 sen

RM85

Employment Insurance System 75

Actual monthly wages of the month

Total contribution

Section 5

Corresponding assumed monthly wages for the month

0 sen

Section 6

RM120

70 sen

Section 7

RM170

RM1.00

Section 8

RM250

RM1.40

Section 9

RM350

RM1.80

Section 10

RM450

RM2.20

Section 11

RM550

RM2.60

Section 12

RM650

RM3.00

Section 13

RM750

RM3.40

Section 14

RM850

RM3.80

Section 15

RM950

RM4.20

Section 16

RM1,050

RM4.60

Section 17

RM1,150

RM5.00

RM1,250

76 Laws of Malaysia

Actual monthly wages of the month

Total contribution

Section 18

Corresponding assumed monthly wages for the month

RM5.40

Section 19

RM1,350

RM5.80

Section 20

RM1,450

RM6.20

Section 21

RM1,550

RM6.60

Section 22

RM1,650

RM7.00

Section 23

RM1,750

RM7.40

Section 24

RM1,850

RM7.80

Section 25

RM1,950

RM8.20

Section 26

RM2,050

RM8.60

Section 27

RM2,150

RM9.00

Section 28

RM2,250

RM9.40

Section 29

RM2,350

RM9.80

Section 30

RM2,450

RM10.20

RM2,550

Employment Insurance System 77

Actual monthly wages of the month

Total contribution

Section 31

Corresponding assumed monthly wages for the month

RM10.60

Section 32

RM2,650

RM11.00

Section 33

RM2,750

RM11.40

Section 34

RM2,850

RM11.80

Section 35

RM2,950

RM12.20

Section 36

RM3,050

RM12.60

Section 37

RM3,150

RM13.00

Section 38

RM3,250

RM13.40

Section 39

RM3,350

RM13.80

Section 40

RM3,450

RM14.20

Section 41

RM3,550

RM14.60

Section 42

RM3,650

RM15.00

Section 43

RM3,750

RM15.40

RM3,850

78 Laws of Malaysia

Actual monthly wages of the month

Total contribution

Section 44

Corresponding assumed monthly wages for the month

RM15.80

Section 45

RM3,950

RM16.20

Section 46

RM4,050

RM16.60

Section 47

RM4,150

RM17.00

Section 48

RM4,250

RM17.40

Section 49

RM4,350

RM17.80

Section 50

RM4,450

RM18.20

Section 51

RM4,550

RM18.60

Section 52

RM4,650

RM19.00

Section 53

RM4,750

RM19.40

Section 54

RM4,850

Section 55

RM4,950

Employment Insurance System 79

FOURTH SCHEDULE

[Sections 32, 34 and 36]

CONTRIBUTIONS QUALIFYING CONDITIONS

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance

(a)

First claim

(i)

12 to 15 months of contributions made in the eligibility period of 24 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

16 to 19 months of contributions made in the eligibility period of 24 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

20 to 23 months of contributions made in the eligibility period of 24 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

24 months of contributions made in the eligibility period of 24 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(b)

Second claim

(i)

18 to 23 months of contributions made in the eligibility period of 36 consecutive months immediately preceding the loss of 3 months

80 Laws of Malaysia

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance employment which shall include the month in which the loss of employment occurs.

(ii)

24 to 29 months of contributions made in the eligibility period of 36 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

30 to 35 months of contributions made in the eligibility period of 36 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

36 months of contributions made in the eligibility period of 36 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(c)

Third claim

(i)

24 to 31 months of contributions made in the eligibility period of 48 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

32 to 39 months of contributions made in the eligibility period of 48 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

40 to 47 months of contributions made in the eligibility period of 48 consecutive months immediately preceding the loss of employment 5 months

Employment Insurance System 81

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance which shall include the month in which the loss of employment occurs.

(iv)

48 months of contributions made in the eligibility period of 48 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(d)

Fourth claim

(i)

30 to 39 months of contributions made in the eligibility period of 60 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

40 to 49 months of contributions made in the eligibility period of 60 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

50 to 59 months of contributions made in the eligibility period of 60 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

60 months of contributions made in the eligibility period of 60 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(e)

Fifth claim

(i)

36 to 47 months of contributions made in the eligibility period of 72 consecutive months 3 months

82 Laws of Malaysia

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

(ii)

48 to 59 months of contributions made in the eligibility period of 72 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

60 to 71 months of contributions made in the eligibility period of 72 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

72 months of contributions made in the eligibility period of 72 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(f)

Sixth claim

(i)

42 to 55 months of contributions made in the eligibility period of 84 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

56 to 69 months of contributions made in the eligibility period of 84 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

70 to 83 months of contributions made in the eligibility period of 84 consecutive months 5 months

Employment Insurance System 83

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

(iv)

84 months of contributions made in the eligibility period of 84 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(g)

Seventh claim

(i)

48 to 63 months of contributions made in the eligibility period of 96 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

64 to 79 months of contributions made in the eligibility period of 96 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

80 to 95 months of contributions made in the eligibility period of 96 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

96 months of contributions made in the eligibility period of 96 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(h)

Eighth claim

84 Laws of Malaysia

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance

(i)

54 to 71 months of contributions made in the eligibility period of 108 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

72 to 89 months of contributions made in the eligibility period of 108 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

90 to 107 months of contributions made in the eligibility period of 108 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

108 months of contributions made in the eligibility period of 108 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(i)

Ninth claim

(i)

60 to 79 months of contributions made in the eligibility period of 120 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

80 to 99 months of contributions made in the eligibility period of 120 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

Employment Insurance System 85

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance

(iii)

100 to 119 months of contributions made in the eligibility period of 120 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

120 months of contributions made in the eligibility period of 120 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(j)

Tenth claim

(i)

66 to 87 months of contributions made in the eligibility period of 132 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

88 to 109 months of contributions made in the eligibility period of 132 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

110 to 131 months of contributions made in the eligibility period of 132 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

132 months of contributions made in the eligibility period of 132 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

86 Laws of Malaysia

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance

(k)

Eleventh claim

(i)

72 to 95 months of contributions made in the eligibility period of 144 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

96 to 119 months of contributions made in the eligibility period of 144 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

(iii)

120 to 143 months of contributions made in the eligibility period of 144 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

144 months of contributions made in the eligibility period of 144 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

(l)

Twelfth claim

(i)

78 to 103 months of contributions made in the eligibility period of 156 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

3 months

(ii)

104 to 129 months of contributions made in the eligibility period of 156 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

4 months

Employment Insurance System 87

Contributions qualifying conditions

Period of payment for job search allowance and reduced income allowance

(iii)

130 to 155 months of contributions made in the eligibility period of 156 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

5 months

(iv)

156 months of contributions made in the eligibility period of 156 consecutive months immediately preceding the loss of employment which shall include the month in which the loss of employment occurs.

6 months

88

Act 800

LIST OF AMENDMENTS

Amending law

Short title

In force from

P.U. (A) 145/2018

Employment

Insurance

System

(Amendment of First Schedule) Order 2018 01-07-2018

P.U. (A) 355/2018

P.U. (A) 249/2021

Employment

Insurance

System

(Amendment of First Schedule)

(No. 2) Order 2018

Employment

Insurance

System

(Amendment of First Schedule) Order 2021

01-01-2018

01-06-2021

Act A1657

Employment

Insurance

System

(Amendment) Act 2022

01-09-2022

89

Act 800

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

Section 16

First Schedule

P.U. (A) 145/2018 01-07-2018

P.U. (A) 355/2018

P.U. (A) 249/2021

01-01-2018 01-06-2021

Second Schedule

Third Schedule

Amending instrument	Year
AKTA SISTEM INSURANS PEKERJAAN (PINDAAN) 2022	2022
AKTA SISTEM INSURANS PEKERJAAN (PINDAAN) 2024	2024

*EMPLOYMENT INSURANCE SYSTEM ACT 2017

About this act

PART I

(2)

(2)

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(a)

(b)

PART II

ADMINISTRATION OF EMPLOYMENT INSURANCE SYSTEM

(2)

(3)

(2)

(3)

(4)

(5)

(a)

(b)

(c)

(2)

PART III

(2)

(3)

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(m)

(n)

(4)

(5)

(m)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(2)

(3)

(a)

(b)

(c)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(a)

(b)

(c)

PART IV

(2)

(a)

(b)

(2)

(3)

(4)

(5)

(2)