Bantuan Berhenti Kerja Malaysia (2026): Employee Rights & Employer Responsibilities

Losing a job can be stressful, especially when it happens unexpectedly. Besides losing a monthly income, employees may also worry about paying bills, supporting their families, and finding a new job.

The good news is that there are several bantuan and financial support programmes available in Malaysia for employees who lose their jobs due to retrenchment, company closure, or VSS/MSS.

For employers and HR teams, understanding these benefits is equally important. Providing the right information and support can help employees manage their transition and ensure the company remains compliant with Malaysian employment laws.

What Is Considered as Diberhentikan Kerja?

An employee is considered to have lost their job if they are:

Retrenched due to company downsizing
Affected by company closure
Released under a Voluntary Separation Scheme (VSS)
Released under a Mutual Separation Scheme (MSS)

Employees who resign voluntarily are generally not considered as losing their job under these schemes.

1. Sistem Insurans Pekerjaan (SIP) PERKESO

The Employment Insurance System (SIP) under PERKESO provides temporary financial assistance to employees who lose their jobs involuntarily.

Benefits Available Under SIP PERKESO

Elaun Mencari Pekerjaan (EMP)

Eligible employees can receive monthly financial assistance for between three and six months, depending on their contribution history.

Elaun Pendapatan Berkurangan (EPB)

This benefit is for individuals with multiple jobs who have lost at least one source of income.

Elaun Bekerja Semula Awal (EBSA)

Employees who find a new job before their EMP period ends may receive an incentive equal to 25% of their remaining EMP balance.

Training Support Under SIP

Fi Latihan (FL)

PERKESO can pay up to RM4,000 in course fees for approved upskilling and reskilling programmes.

Elaun Latihan (EL)

Employees attending approved training programmes may also receive a daily allowance of between RM10 and RM20.

Image source: PERKESO

Who Can Apply?

Employees must:

Apply within 60 days from their last working day.
Meet the minimum contribution requirements.
Be unemployed according to the definition under the SIP Act.

Employer & HR Tip

During an employee's exit process, HR should remind affected employees to apply for SIP PERKESO as soon as possible because late applications may be rejected.

2. Faedah Penamatan Kerja (Retrenchment Benefits)

Under the Employment Act 1955 and the Employment (Termination and Lay-Off Benefits) Regulations 1980, employers may need to pay retrenchment benefits to eligible employees.

Minimum Compensation Rates

Length of Service	Compensation
Less than 2 years	10 days' wages for every year of service
2 to 5 years	15 days' wages for every year of service
More than 5 years	20 days' wages for every year of service

Any incomplete year of service should be calculated on a pro-rata basis.

Other Payments Employers Must Make

Employers should also settle:

Outstanding salary
Overtime payments
Fixed allowances
Earned commissions
Unused annual leave entitlement

These payments should generally be made within seven days from the employee's termination date.

Who Is Eligible?

Employees are generally eligible if:

They have worked continuously for at least 12 months.
Their monthly salary is RM4,000 and below.

Manual workers may still be entitled to compensation even if they earn more than RM4,000 per month.

For non-manual employees earning above RM4,000, the entitlement depends on the employment contract or company policy.

Employer & HR Tip

Always review employment contracts and company handbooks before conducting a retrenchment exercise to avoid disputes.

When Are Employers Not Required to Pay Retrenchment Compensation?

Employers generally do not need to pay retrenchment benefits if:

The employee resigns voluntarily.
The employee is terminated due to misconduct after a proper domestic inquiry.
The employee retires according to the retirement age stated in the contract.

Employees who believe they have not received the correct payment can file a complaint with Jabatan Tenaga Kerja (JTK).

3. MYFutureJobs Support Services

Employees who lose their jobs can register on MYFutureJobs to search for new job opportunities.

Through MYFutureJobs, employees can receive:

Job matching services
Career guidance
Employment support from PERKESO officers

Employer & HR Tip

Including information about MYFutureJobs in the exit process can help employees return to work faster.

4. Bantuan Khas Jabatan Kebajikan Masyarakat (JKM)

Employees who are registered as Orang Kurang Upaya (OKU) may apply for Bantuan OKU Tidak Berupaya Bekerja (BTB).

Eligibility Requirements

Applicants must:

Be Malaysian citizens
Be between 16 and 59 years old
Be registered with JKM as an OKU
Be unable to work full-time
Meet the household income requirements

Find out your household income category in minutes with this free calculator.

Benefit Amount

Eligible recipients can receive:

RM300 per month

What Should Employees Do After Losing Their Job?

During the first 60 days after losing a job, employees should:

Obtain an official termination letter.
Check their retrenchment compensation.
Apply for SIP PERKESO immediately.
Register with MYFutureJobs.
Review their financial commitments and seek assistance if necessary.

Tips for Managing Financial Difficulties

Check Your KWSP Akaun Fleksibel

Employees can withdraw money from Akaun 3 (Akaun Fleksibel) for emergency needs.

Contact Your Bank

Ask your bank about loan restructuring or rescheduling options if you are facing financial difficulties.

Seek Help From AKPK

AKPK provides free financial counselling and debt management programmes.

Review Your Tax Position

Retrenchment compensation or VSS payments may qualify for tax exemptions depending on the employee's years of service.

Why Employers and HR Should Support Affected Employees

Retrenchment is not only a legal process but also a people management issue.

Employers and HR teams should:

Communicate clearly with employees.
Explain available bantuan and support programmes.
Pay compensation accurately and on time.
Provide important documents for SIP and tax purposes.
Guide employees towards available government assistance.

Supporting employees during difficult times can help maintain trust and protect the company's reputation.

FAQs

Can employees who resign voluntarily apply for SIP PERKESO benefits?

No. SIP PERKESO only covers employees who lose their jobs involuntarily, such as retrenchment, company closure, or employees who accept VSS or MSS. Employees who resign voluntarily are generally not eligible for SIP financial assistance.

How long do employees have to apply for SIP PERKESO after their last working day?

Employees must submit their application within 60 days from their official termination date. Applications submitted after the 60-day period will usually be rejected automatically.

Does an employer need to pay retrenchment compensation to employees earning more than RM4,000 per month?

Not necessarily. Statutory retrenchment benefits generally apply to employees earning RM4,000 and below or manual workers regardless of salary. For non-manual employees earning above RM4,000, the entitlement depends on the employment contract or company policy.

Can employees receive both SIP PERKESO benefits and retrenchment compensation from their employer?

Yes. These are separate benefits. Eligible employees may receive retrenchment compensation from their employer and also apply for SIP PERKESO benefits if they meet the qualifying requirements.

What should employers do when conducting a retrenchment exercise?

Employers should provide an official termination letter, calculate compensation accurately, settle all outstanding payments on time, and inform affected employees about available support such as SIP PERKESO and MYFutureJobs.

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