Is EIS mandatory in Malaysia?

Yes. EIS is compulsory and not optional in Malaysia (Except for those stated below).

Any employer who fails to comply with EIS would result in a fine of RM 10,000 and /or imprisonment for not more than 2 years upon conviction. It is an insurance system to ensure job security for Malaysian citizens.

 

A simple rule to remember:

If you are paying your employees SOCSO, you will need to pay your employees EIS.

Both fall under the same category in terms of contribution eligibility.

Check out the exemptions of EIS.