EIS Calculator Malaysia

EIS (Employment Insurance System) is a social security scheme introduced in Malaysia in 2018, administered by PERKESO. It provides temporary financial assistance to employees who lose their jobs through no fault of their own — specifically through retrenchment, redundancy, or company closure.

Both employee and employer contribute 0.2% each of the employee's monthly wages, totalling 0.4%. The contribution is capped at RM4,000 of monthly wages, meaning the maximum total contribution is RM16 per month (RM8 from employee, RM8 from employer). This is one of the smallest deductions on a Malaysian payslip.

If you lose your job and are eligible for EIS benefits, you can receive financial assistance of up to 80% of your last drawn salary for a maximum period depending on your contribution history. The benefit duration ranges from 3 to 6 months:

- 2-12 months of contributions: 3 months of benefits - 13-24 months: 4 months - 25-36 months: 5 months - 37+ months: 6 months

To claim EIS benefits, you must register at any PERKESO office within 30 days of losing your job. You must also be actively seeking new employment during the benefit period.

To be eligible for EIS benefits, you must meet the following criteria:

1. You must be a Malaysian citizen or permanent resident 2. You must have contributed to EIS for at least 2 months in the 6 months before unemployment 3. Your job loss must be due to retrenchment, redundancy, or company closure (not voluntary resignation or dismissal for misconduct) 4. You must not be receiving any other retrenchment benefits from your employer 5. You must register with PERKESO within 30 days of job loss

The claim process involves: 1. Register at any PERKESO office with your IC, termination letter, and bank statements 2. Attend a career counselling session 3. Apply for jobs through PERKESO's job matching system 4. Receive monthly benefit payments directly to your bank account

The EIS scheme has paid out millions of ringgit in benefits since its inception, particularly during economic downturns and the COVID-19 pandemic when many Malaysians lost their jobs. The scheme provides a crucial safety net for workers and their families during periods of unemployment.

Our EIS calculator is a straightforward tool designed to help Malaysian employees understand their EIS contributions and potential benefits. Follow these steps to get your results:

**Step 1:** Enter your gross monthly salary. This is the amount stated in your employment contract before any deductions. The calculator uses this to determine your EIS contribution based on the 0.2% employee rate.

**Step 2:** The calculator automatically applies the RM4,000 wage cap. If your salary is RM4,000 or below, the full 0.2% rate is applied. If your salary exceeds RM4,000, the contribution is capped at RM8 per month regardless of how much you earn above the cap.

**Step 3:** Review the results which show both your employee contribution and your employer's matching contribution. The calculator also displays the total combined contribution of 0.4%.

**Step 4:** The calculator estimates your potential EIS benefit if you were to lose your job. Based on your salary and assumed contribution period, it shows the monthly benefit amount (up to 80% of last drawn salary) and the maximum benefit duration based on your contribution months.

**Step 5:** For employees with specific contribution histories, you can adjust the contribution months to see how it affects your benefit duration. The longer you have been contributing, the longer the benefit period you are entitled to — from 3 months (minimum) up to 6 months (maximum).

This calculator is particularly useful for employees who want to understand the safety net provided by EIS, and for those who may be facing potential job changes and want to plan their finances accordingly.

Understanding EIS contributions and benefits is easier with real-world examples. Here are calculations for different salary levels commonly found in Malaysia:

**Example 1: RM3,000 Monthly Salary**

EIS employee contribution: 0.2% × RM3,000 = RM6.00 per month EIS employer contribution: 0.2% × RM3,000 = RM6.00 per month Total monthly contribution: RM12.00

If this employee loses their job after contributing for 24 months: - Monthly benefit: 80% × RM3,000 = RM2,400 per month - Benefit duration: 4 months (for 13-24 months of contributions) - Total benefit payout: RM2,400 × 4 = RM9,600 - Total contributed: RM12 × 24 = RM288

**Example 2: RM5,000 Monthly Salary (Above Cap)**

EIS employee contribution: 0.2% × RM4,000 (capped) = RM8.00 per month EIS employer contribution: 0.2% × RM4,000 (capped) = RM8.00 per month Total monthly contribution: RM16.00

If this employee loses their job after contributing for 48 months: - Monthly benefit: 80% × RM5,000 = RM4,000 per month - Benefit duration: 6 months (maximum, for 37+ months of contributions) - Total benefit payout: RM4,000 × 6 = RM24,000 - Total contributed: RM16 × 48 = RM768

**Example 3: RM2,000 Monthly Salary**

EIS employee contribution: 0.2% × RM2,000 = RM4.00 per month EIS employer contribution: 0.2% × RM2,000 = RM4.00 per month Total monthly contribution: RM8.00

If this employee loses their job after contributing for 10 months: - Monthly benefit: 80% × RM2,000 = RM1,600 per month - Benefit duration: 3 months (for 2-12 months of contributions) - Total benefit payout: RM1,600 × 3 = RM4,800 - Total contributed: RM8 × 10 = RM80

These examples demonstrate that EIS provides exceptional value for money — a total contribution of just RM288 to RM768 over several years can provide thousands of ringgit in financial support during unemployment.

Beyond the basic income replacement, the EIS scheme in Malaysia offers several additional benefits and support programmes that many employees are not aware of.

**Career Counselling and Job Placement:** When you register for EIS benefits, PERKESO provides career counselling services to help you identify suitable job opportunities and improve your employability. This includes resume writing workshops, interview coaching, and skills assessment. PERKESO also operates a job matching system that connects registered job seekers with available positions across various industries.

**Training and Upskilling Programmes:** EIS claimants may be eligible for free or subsidised training programmes to enhance their skills and improve their chances of finding new employment. These programmes cover various industries and skill levels, from technical certifications to soft skills development. The cost of approved training may be covered under the EIS scheme.

**Reduced Income Search Allowance:** If you find a new job that pays less than your previous salary, you may be eligible for a Reduced Income Search Allowance. This supplementary payment helps bridge the gap between your old and new salary for a limited period, giving you time to adjust or find better-paying opportunities.

**Important Conditions to Remember:** - You must actively seek employment during the benefit period. PERKESO may require evidence of job applications and interviews. - You cannot refuse suitable job offers without valid reason, or your benefits may be discontinued. - If you find employment before your benefit period ends, you must inform PERKESO immediately to stop further payments. - Benefits are paid monthly and typically processed within 7 to 14 working days after registration.

The EIS scheme has evolved since its introduction and continues to be refined to better serve Malaysian workers. During the COVID-19 pandemic, the government expanded EIS coverage and introduced additional support measures, demonstrating the scheme's importance as part of Malaysia's social safety net.

Here are answers to the most commonly asked questions about the Employment Insurance System in Malaysia:

**Can I opt out of EIS contributions?** No. EIS contributions are mandatory for all eligible employees in Malaysia. Both the employee and employer are required by law to contribute. Refusing to contribute or requesting to be excluded is not permitted under the Employment Insurance System Act 2017.

**What happens to my EIS contributions if I never claim benefits?** Your EIS contributions are not refundable like EPF savings. EIS operates on an insurance model where contributions from all active workers fund the benefits for those who lose their jobs. Think of it as a small premium for significant financial protection. At RM8 or less per month, it is a very affordable safety net.

**Does EIS cover resignation?** No. EIS only covers involuntary job loss — specifically retrenchment, redundancy, and company closure. If you resign voluntarily, you are not eligible for EIS benefits. Similarly, if you are dismissed for misconduct, you cannot claim EIS. The scheme is designed to protect workers who lose their jobs through no fault of their own.

**How soon must I register after losing my job?** You must register at a PERKESO office within 30 calendar days of your last day of employment. If you register after the 30-day window, you may still be eligible for benefits but the payment may not be backdated to your last working day. It is strongly recommended to register as soon as possible.

**Are part-time and contract workers covered by EIS?** Yes, EIS covers all employees who are Malaysian citizens or permanent residents, including those on part-time or contract basis, as long as their monthly wages are RM30 or more. The contribution is still calculated at 0.2% of actual wages (capped at RM4,000). However, foreign workers are not covered under EIS.