EIS Malaysia: Workers to Receive Enhanced Benefits and Protection From 1 October 2026

Malaysia's Employment Insurance System (EIS) will provide enhanced support to eligible contributors from 1 October 2026, with higher benefits for workers who return to employment, relocate for a new job or take part in approved training.

Human Resources Minister Datuk Seri R. Ramanan said the changes under the amended Employment Insurance System Act 2017 will come into force on 1 October. The government said the amendments are intended to strengthen support for PERKESO contributors who lose their jobs and improve their transition back into employment.

According to Bernama's report on the EIS improvements, eligible contributors may receive up to RM25,000 in total support and protection, depending on the benefits they qualify for.

What Is Changing Under EIS From 1 October 2026?

The main changes announced are:

EIS Benefit	Current Benefit	From 1 October 2026
Early Re-employment Allowance	25% of remaining JSA	50% of remaining JSA
Mobility Assistance Allowance	No equivalent benefit	RM1,000 one-off
Training Allowance	RM10 to RM20 per day	RM30 per day
Maximum Training Fee	RM4,000	RM7,000

The changes are part of amendments to the Employment Insurance System Act 2017 and are aimed at improving financial support, encouraging labour mobility and helping unemployed workers build skills for new employment. Parliamentary records on the amendments set out the broader objectives of the changes.

Early Re-employment Allowance Will Increase From 25% to 50%

The Early Re-employment Allowance (ERA) will increase from 25% to 50% of the remaining Job Search Allowance (JSA).

Under the current PERKESO EIS guidelines, the allowance is a financial incentive for JSA recipients who return to work while they are still receiving JSA.

From 1 October 2026, the higher 50% rate means eligible workers who return to employment before using up their JSA entitlement can receive a larger early re-employment payment. The latest announcement from the Human Resources Minister confirms the increase.

The actual amount will depend on the worker's eligibility, assumed monthly wage and remaining JSA entitlement.

New RM1,000 Mobility Assistance Allowance

A new Mobility Assistance Allowance will be introduced to support eligible contributors who secure new employment and need to travel or relocate for work.

Human Resources Minister Datuk Seri R. Ramanan said eligible contributors whose new workplace is more than 100 kilometres from their residence can receive a one-off RM1,000 payment. The Star's report on the new mobility allowance confirms the announcement.

The amendment provides for the mobility allowance as a one-off benefit to support the placement of an insured person into new employment. Parliament's record on the Employment Insurance amendments also states that the worker must report for the new job within a specified period after receiving their final JSA or Early Re-employment Allowance.

The government said the mobility support is intended to encourage workers to consider suitable job opportunities outside their immediate area.

The Malaysian Employers Federation also said the RM1,000 assistance could help improve matching between available workers and vacancies in different locations. Bernama's report on the Mobility Assistance Allowance said geographical mobility could help employers reach suitable candidates beyond their immediate local areas.

Workers should check the latest PERKESO requirements for the eligibility criteria, application procedure and payment process once the benefit takes effect.

Training Allowance Will Increase to RM30 Per Day

The daily EIS Training Allowance will increase to RM30 per day from 1 October 2026.

Under the current PERKESO Employment Insurance System information, the Training Allowance is currently between RM10 and RM20 per day, depending on the recipient's previous assumed salary.

The new RM30 rate will provide a higher daily allowance for eligible contributors attending approved training.

For example:

RM30 × 30 days = RM900

A contributor who attends 30 days of eligible training could therefore receive RM900 in Training Allowance.

The Training Allowance is separate from the cost of the training programme.

Maximum Training Fee Will Increase to RM7,000

The maximum EIS Training Fee will increase from RM4,000 to RM7,000.

Under the current EIS system, eligible JSA recipients can be referred for vocational or skills training, with training costs of up to RM4,000 covered by EIS. PERKESO's current EIS guidance provides the existing Training Fee details.

From 1 October 2026, the maximum amount will increase to RM7,000 to provide more support for contributors who need to reskill or improve their employability. Bernama reported the increase in the maximum training fee as part of the wider EIS enhancements.

It is important to distinguish between the two benefits:

Training Fee: Supports the cost of an approved training programme.

Training Allowance: Provides a daily allowance to the eligible person attending training.

What Does the RM25,000 EIS Support Mean?

The government has said eligible EIS contributors can receive up to RM25,000 in total support and protection under the enhanced system. Bernama's announcement reported the figure following Ramanan's announcement on 19 September 2026.

However, the RM25,000 figure should not be understood as a guaranteed RM25,000 cash payment for every unemployed worker.

The actual amount will depend on the benefits a contributor qualifies for, including factors such as contribution history, assumed monthly wage, JSA entitlement, training and other applicable conditions.

The overall support package combines different forms of assistance, including job-search income support, early re-employment incentives, training support and mobility assistance.

Does the Job Search Allowance Change?

The existing Job Search Allowance (JSA) remains an important part of EIS.

According to PERKESO's official EIS information, eligible insured persons who lose their sole source of income can receive JSA for three to six months, depending on their Contributions Qualifying Conditions.

The current JSA payment structure is:

Month	JSA Rate
1st month	80%
2nd month	50%
3rd month	40%
4th month	40%
5th month	30%
6th month	30%

PERKESO's FAQ confirms these current JSA rates.

This means the October 2026 changes mainly enhance early re-employment, mobility and training support, rather than replacing the existing JSA rate structure.

Who Can Receive EIS Benefits?

EIS is designed to support eligible insured persons who experience a qualifying Loss of Employment (LOE).

According to PERKESO's EIS eligibility requirements, applicants must generally:

Apply within 60 days from the date of Loss of Employment.
Satisfy the required Contributions Qualifying Conditions (CQC).
Experience a Loss of Employment recognised under the EIS Act.

PERKESO lists examples of qualifying situations such as:

Normal retrenchment
Voluntary Separation Scheme (VSS) or Mutual Separation Scheme (MSS)
Certain workplace closures
Bankruptcy or business closure
Constructive dismissal
Resignation due to sexual harassment or workplace threats
Resignation after being instructed to perform dangerous duties outside the job scope

However, not every job separation qualifies. PERKESO's EIS information also lists exclusions such as voluntary resignation, mandatory retirement, expiry of a fixed-term contract and dismissal for misconduct, subject to the applicable rules.

Workers should check their individual circumstances with PERKESO before applying.

EIS Is Expanding Its Employment Services Role

The amendments also give PERKESO a wider role in providing employment services.

Parliamentary records state that the changes are intended to clearly provide for PERKESO's role in employment services and active labour market programmes, including helping job seekers connect with vacancies. The March 2026 parliamentary debate explains that the legislation is being expanded to cover employment services alongside employment insurance.

The government has highlighted services such as job matching, career advisory services, retraining and reskilling as part of the wider support provided through PERKESO. Bernama's report on PERKESO employment services also noted that MYFutureJobs provides job matching, career counselling, resume reviews, interview preparation and retraining support.

This means EIS is increasingly focused not only on providing financial assistance after job loss, but also on helping workers return to employment.

What Employers Need to Know

The 2026 amendments also introduce changes relevant to employers.

Employers will be required to notify PERKESO in writing about job vacancies or newly created positions before recruitment begins, under the amended employment-insurance framework. The objective is to improve labour market information and strengthen employment services. Bernama's report on the employer vacancy requirement outlines the requirement.

A revised progressive penalty structure was also approved:

Offence	Maximum Fine
First offence	RM1,000
Second offence	RM3,000
Third or subsequent offence	RM5,000

The penalty structure was approved by the Dewan Rakyat in June 2026 after amendments made by the Dewan Negara. Bernama reported the revised employer penalties.

Employers should refer to PERKESO for the latest reporting procedures, implementation requirements and enforcement guidance.

Why the New Mobility Assistance Matters

The new mobility benefit is also relevant to Malaysia's wider job market.

A suitable job is not always located close to where a worker lives. Some job seekers may need to travel or relocate to another city or state before they can start a new position.

The RM1,000 Mobility Assistance Allowance is intended to help support this transition and encourage workers to consider suitable job opportunities farther from home.

From an employer perspective, greater geographical mobility could also widen the pool of candidates available for vacancies. The Malaysian Employers Federation said the initiative could help improve matching between workers and job opportunities beyond the immediate local area. MEF's comments reported by Bernama support this labour-market perspective.

When Will the New EIS Benefits Start?

The Human Resources Minister has announced that the enhanced EIS provisions will take effect on 1 October 2026. The Star's 20 September 2026 report and Bernama's 19 September 2026 report both report the 1 October implementation date.

The changes come under amendments to the Employment Insurance System Act 2017.

Workers who may qualify for EIS should monitor PERKESO's official Employment Insurance information for the latest eligibility requirements, application procedures and details of the enhanced benefits.

FAQs

When will the new EIS benefits start?

The enhanced EIS provisions are scheduled to take effect on 1 October 2026, according to Human Resources Minister Datuk Seri R. Ramanan. The Star's latest EIS report reported the announcement.

How much is the new EIS Mobility Assistance Allowance?

Eligible contributors who secure qualifying new employment may receive a one-off RM1,000 Mobility Assistance Allowance where the new workplace is more than 100km from their residence, subject to the applicable conditions. The Star's report confirms the announced amount and distance.

How much is the EIS Training Allowance from October 2026?

The Training Allowance will increase to RM30 per day from 1 October 2026. Bernama's report confirms the new rate.

What is the new maximum EIS Training Fee?

The maximum Training Fee will increase from RM4,000 to RM7,000. Bernama's EIS announcement confirms the increase.

Will the Early Re-employment Allowance increase?

Yes. The Early Re-employment Allowance will increase from 25% to 50% of the remaining Job Search Allowance, subject to the relevant eligibility requirements. The Star's report on the EIS changes confirms the increase.

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