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Employment Insurance System (EIS) Account Registration in Malaysia


The Employment Insurance System (EIS) is a social security network in Malaysia which is managed by PERKESO (Pertubuhan Keselamatan Sosial). PERKESO is the Malaysian government agency established to provide social security protection for Malaysian employees under the 1969 Social Security Act. PERKESO is also known locally as SOCSO (Social Security Organization).

EIS was set-up to help workers who’ve lost their jobs by providing them with financial assistance, job searches, career counselling and job suitability support services. EIS requires contributions from both employers and employees and will take effect from January 2018.


How EIS Works

All employers in the private sector who have one or more employees registered under their company must register and contribute towards the new EIS scheme.

New employers who are not SOCSO registered will be required to complete the SIP 1 Form (employer’s registration form) and SIP 2 Form (employer’s registration form).

Existing employers who are already SOCSO registered will be required to complete the SIP 1A and SIP 2A Forms, which are both employee’s notification forms.

SIP Forms can be obtained from PERKESO’s website:

All employees in the private sector between the ages of 18 and 60 years old will be required to contribute to the EIS scheme too, unless they fall into the following categories of employees:

  • Employees who are above the age of 57 and have had no contributions being paid before reaching the age of 57.
  • Employees who are self-employed
  • Civil Servants
  • Domestic Servants
  • Employees of local authorities
  • Employees of Statutory Bodies
  • Employees who are members of the public service of the Federation and the States.

The contribution rate of the SIP would be an average of 0.4% of the employee’s monthly salary. The employer would be required to pay 0.2%, and the employee contributes the other 0.2%. The contributions to the fund will be capped at a salary level of RM4,000 a month.

SIP submissions must be due before the 15th of every month, and the contributions are to be submitted separately from the normal SOCSO contributions.