What is the employment insurance system in Malaysia?

EIS stands for Employment Insurance System, it was first implemented in Malaysia on January 2018 as social safety insurance to protect employees, mainly for the private sector who are affected by employee retrenchment.

It is a financial scheme aimed to help insured employees to get financial assistance if they are retrenched from work until they find new employment. EIS is paid by both employers and employees every month.

 

Is EIS payment mandatory or optional? check with our expert.