EIS Contribution Table in Malaysia

Employment Insurance System (EIS) is an employment help scheme or enhancement of the retrenched worker rehiring assistance scheme comprised of the Malaysia social security system whenever unemployment occurs.

The SOCSO-managed EIS contributions allow workers to make provisions for themselves during unemployment so that basic needs are met while job hunting.

This article will give you an understanding of EIS and how much the contribution rate in Malaysia.

What is the EIS?

Sistem Insurans Pekerjaan or EIS was created in 2018 in Malaysia and the System Employment Insurance Act 2017. The scheme was aimed at providing relief to the people who have been laid off from their jobs. The system also offers re-employment assistance such as job search allowances, training, and career counselling to help individuals return to the workforce.

Who Should Contribute to EIS?

Private-sector employers in Malaysia.
Malaysian employees aged 18 to 60 (under normal employment).

Who Is Exempt from EIS?

Employees aged 60 and above (Malaysian or permanent residents).
Employees aged between 57 and 59 who have never contributed to the EIS before.
Foreign workers (all foreign employees).
Government employees.
Domestic workers (e.g., maids, live-in caregivers).
Self-employed individuals.

Both employers and employees share the responsibility of contributing to the EIS, which is deducted automatically from monthly wages.

How Does the EIS Contribution Work?

EIS contributions are based on a percentage of the employee's salary, with both the employer and employee making equal contributions. The rate is 0.2% from the employer and 0.2% from the employee, bringing the total contribution to 0.4% of the employee's salary.

For instance, if an employee earns RM3,000 a month, the employer and employee will each contribute 0.2%, amounting to RM6. Together, they contribute RM12 per month towards the EIS fund. The total contribution is capped, and higher earners will not have to pay beyond a certain amount, ensuring fairness across various income levels.

EIS Contribution Table

Both Contribution Rates are calculated at ~0.2% of the Employee’s Salary

	Amount of Wages	Employer Contribution	Employee Contribution	Total
1	Wages up to RM30	5 sen	5 sen	10 sen
2	Exceeds RM30, not exceeding RM50	10 sen	10 sen	20 sen
3	Exceeds RM50, not exceeding RM70	15 sen	15 sen	30 sen
4	Exceeds RM70, not exceeding RM100	20 sen	20 sen	40 sen
5	Exceeds RM100, not exceeding RM140	25 sen	25 sen	50 sen
6	Exceeds RM140, not exceeding RM200	35 sen	35 sen	70 sen
7	Exceeds RM200, not exceeding RM300	50 sen	50 sen	RM1.00
8	Exceeds RM300, not exceeding RM400	70 sen	70 sen	RM1.40
9	Exceeds RM400, not exceeding RM500	90 sen	90 sen	RM1.80
10	Exceeds RM500, not exceeding RM600	RM1.10	RM1.10	RM2.20
11	Exceeds RM600, not exceeding RM700	RM1.30	RM1.30	RM2.60
12	Exceeds RM700, not exceeding RM800	RM1.50	RM1.50	RM3.00
13	Exceeds RM800, not exceeding RM900	RM1.70	RM1.70	RM3.40
14	Exceeds RM900, not exceeding RM1,000	RM1.90	RM1.90	RM3.80
15	Exceeds RM1,000, not exceeding RM1,100	RM2.10	RM2.10	RM4.20
16	Exceeds RM1,100, not exceeding RM1,200	RM2.30	RM2.30	RM4.60
17	Exceeds RM1,200, not exceeding RM1,300	RM2.50	RM2.50	RM5.00
18	Exceeds RM1,300, not exceeding RM1,400	RM2.70	RM2.70	RM5.40
19	Exceeds RM1,400, not exceeding RM1,500	RM2.90	RM2.90	RM5.80
20	Exceeds RM1,500, not exceeding RM1,600	RM3.10	RM3.10	RM6.20
21	Exceeds RM1,600, not exceeding RM1,700	RM3.30	RM3.30	RM6.60
22	Exceeds RM1,700, not exceeding RM1,800	RM3.50	RM3.50	RM7.00
23	Exceeds RM1,800, not exceeding RM1,900	RM3.70	RM3.70	RM7.40
24	Exceeds RM1,900, not exceeding RM2,000	RM3.90	RM3.90	RM7.80
25	Exceeds RM2,000, not exceeding RM2,100	RM4.10	RM4.10	RM8.20
26	Exceeds RM2,100, not exceeding RM2,200	RM4.30	RM4.30	RM8.60
27	Exceeds RM2,200, not exceeding RM2,300	RM4.50	RM4.50	RM9.00
28	Exceeds RM2,300, not exceeding RM2,400	RM4.70	RM4.70	RM9.40
29	Exceeds RM2,400, not exceeding RM2,500	RM4.90	RM4.90	RM9.80
30	Exceeds RM2,500, not exceeding RM2,600	RM5.10	RM5.10	RM10.20
31	Exceeds RM2,600, not exceeding RM2,700	RM5.30	RM5.30	RM10.60
32	Exceeds RM2,700, not exceeding RM2,800	RM5.50	RM5.50	RM11.00
33	Exceeds RM2,800, not exceeding RM2,900	RM5.70	RM5.70	RM11.40
34	Exceeds RM2,900, not exceeding RM3,000	RM5.90	RM5.90	RM11.80
35	Exceeds RM3,000, not exceeding RM3,100	RM6.10	RM6.10	RM12.20
36	Exceeds RM3,100, not exceeding RM3,200	RM6.30	RM6.30	RM12.60
37	Exceeds RM3,200, not exceeding RM3,300	RM6.50	RM6.50	RM13.00
38	Exceeds RM3,300, not exceeding RM3,400	RM6.70	RM6.70	RM13.40
39	Exceeds RM3,400, not exceeding RM3,500	RM6.90	RM6.90	RM13.80
40	Exceeds RM3,500, not exceeding RM3,600	RM7.10	RM7.10	RM14.20
41	Exceeds RM3,600, not exceeding RM3,700	RM7.30	RM7.30	RM14.60
42	Exceeds RM3,700, not exceeding RM3,800	RM7.50	RM7.50	RM15.00
43	Exceeds RM3,800, not exceeding RM3,900	RM7.70	RM7.70	RM15.40
44	Exceeds RM3,900, not exceeding RM4,000	RM7.90	RM7.90	RM15.80
45	Exceeds RM4,000, not exceeding RM4,100	RM8.10	RM8.10	RM16.20
46	Exceeds RM4,100, not exceeding RM4,200	RM8.30	RM8.30	RM16.60
47	Exceeds RM4,200, not exceeding RM4,300	RM8.50	RM8.50	RM17.00
48	Exceeds RM4,300, not exceeding RM4,400	RM8.70	RM8.70	RM17.40
49	Exceeds RM4,400, not exceeding RM4,500	RM8.90	RM8.90	RM17.80
50	Exceeds RM4,500, not exceeding RM4,600	RM9.10	RM9.10	RM18.20
51	Exceeds RM4,600, not exceeding RM4,700	RM9.30	RM9.30	RM18.60
52	Exceeds RM4,700, not exceeding RM4,800	RM9.50	RM9.50	RM19.00
53	Exceeds RM4,800, not exceeding RM4,900	RM9.70	RM9.70	RM19.40
54	Exceeds RM4,900, not exceeding RM5,000	RM9.90	RM9.90	RM19.80
55	Exceeds RM5,000, not exceeding RM5,100	RM10.10	RM10.10	RM20.20
56	Exceeds RM5,100, not exceeding RM5,200	RM10.30	RM10.30	RM20.60
57	Exceeds RM5,200, not exceeding RM5,300	RM10.50	RM10.50	RM21.00
58	Exceeds RM5,300, not exceeding RM5,400	RM10.70	RM10.70	RM21.40
59	Exceeds RM5,400, not exceeding RM5,500	RM10.90	RM10.90	RM21.80
60	Exceeds RM5,500, not exceeding RM5,600	RM11.10	RM11.10	RM22.20
61	Exceeds RM5,600, not exceeding RM5,700	RM11.30	RM11.30	RM22.60
62	Exceeds RM5,700, not exceeding RM5,800	RM11.50	RM11.50	RM23.00
63	Exceeds RM5,800, not exceeding RM5,900	RM11.70	RM11.70	RM23.40
64	Exceeds RM5,900, not exceeding RM6,000	RM11.90	RM11.90	RM23.80
65	Wages exceed RM6,000 (CAPPED)	RM11.90	RM11.90	RM23.80

Why is the EIS Contribution Important?

The EIS contribution is more than just a legal requirement; it is a vital support system for employees who may face unexpected unemployment. It provides a financial cushion during the job-seeking period, which can be crucial in covering living expenses such as rent, food, and transportation.

For employers, EIS serves as a tool to ensure their employees’ well-being, even in difficult times. When employees know they are protected by EIS, they may feel more secure in their roles, potentially improving overall workplace morale and productivity.

Understanding the EIS contribution system is essential for both employers and employees in Malaysia. It provides a safety net for workers facing unemployment and ensures financial stability during difficult times. By contributing to EIS, employers are fulfilling their legal obligations and helping to create a more secure and productive workforce, while employees can have peace of mind knowing they are protected if they lose their job.

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