Malaysia EIS 2026 Takes Effect 1 Oct: RM1,000 Mobility Allowance and More

Malaysia’s Employment Insurance System (EIS) is being updated to provide more support to insured workers who lose their jobs and help them return to work.

The Employment Insurance System (Amendment) Bill 2025 was passed by the Dewan Rakyat in December 2025 and subsequently passed by the Dewan Negara in March 2026. The amendments cover areas such as worker benefits, job mobility, employment services and EIS administration.

One of the changes getting attention is the introduction of a RM1,000 Mobility Assistance Allowance for eligible workers who take up a new job that requires greater travel or relocation.

According to recent information reported, the mobility allowance is expected to begin from 1 October 2026.

What is the EIS?

The Employment Insurance System (EIS) is managed by PERKESO and provides financial and employment support to eligible insured workers who lose their jobs.

Current EIS benefits include the Job Search Allowance, Early Re-Employment Allowance, Training Fee and Training Allowance, among others.

The proposed changes are intended to strengthen this support and make it easier for workers to find suitable employment.

1. RM1,000 Mobility Assistance Allowance

One of the main changes is a new RM1,000 Mobility Assistance Allowance.

The allowance is designed to help eligible insured workers who accept a new job that requires them to work further away from their home.

The proposed eligibility includes workers who:

Receive a new job offer
Return to work within the required period
Meet the EIS conditions
Take up employment that meets the mobility requirement

Parliamentary records state that the allowance is a one-off payment of RM1,000. The stated distance criterion is more than 100km, with applications to be made within the specified period after receiving the relevant EIS benefit.

The aim is to reduce some of the costs workers may face when accepting a job further from home.

For example, a job seeker may find a suitable position in another city but need extra money for travel, moving or other initial costs.

2. Early Re-Employment Allowance Could Increase

The amendment also proposes an increase in the Early Re-Employment Allowance (ERA).

The allowance would increase from 25% to 50% of the remaining unpaid Job Search Allowance.

The purpose is to provide an additional incentive for eligible workers who return to employment before using up their full Job Search Allowance.

Under the current EIS system, the Early Re-Employment Allowance is a lump-sum payment for eligible Job Search Allowance recipients who return to work while still receiving the benefit.

3. Higher Training Allowance

Training support under EIS is also set to increase.

The proposed amendment would raise the daily Training Allowance to RM30.

This can provide additional support for eligible unemployed workers while they attend approved training programmes.

The government has described the higher training support as part of efforts to help workers improve their skills and return to employment.

4. Higher Training Fee Support

The maximum training fee covered under EIS is also proposed to increase.

The amount would go from:

RM4,000 → RM7,000

This could give eligible workers access to a wider range of training programmes and skills development opportunities.

Parliamentary records specifically mention the increase in the maximum training fee from RM4,000 to RM7,000 as part of the amendments.

5. EIS Will Support Wider Employment Services

The amendments also expand the role of PERKESO in providing employment services.

The parliamentary debate described the changes as allowing PERKESO to provide employment services to Malaysians more broadly, including helping job seekers connect with vacancies offered by employers.

This means EIS is not only about providing financial assistance after someone loses a job. It also places greater focus on helping people find their next job.

What About the Job Search Allowance?

The Job Search Allowance remains an important part of EIS support for eligible workers who lose their employment.

The existing structure provides decreasing levels of income replacement over the benefit period.

The rates are:

Period	Job Search Allowance
1st month	80% of previous salary
2nd month	50%
3rd & 4th month	40%
5th & 6th month	30%

PERKESO currently states that the Job Search Allowance provides replacement income for eligible people who have lost their main source of income, with payment lasting between three and six months depending on the person's contribution conditions.

What Should Employers Know?

For HR teams and employers, these EIS changes are worth following because they may affect how employers approach recruitment and workforce planning.

The new mobility support could also make it easier for employers to attract suitable candidates from outside their immediate area.

For example, if a company has difficulty finding workers locally, candidates from another city may be more willing to accept the position if some of their relocation or travel costs can be supported.

The amendments also include changes related to employment services, job vacancies and the role of PERKESO in supporting the labour market.

What Should Employers Know About the EIS Changes?

For employers, the proposed EIS changes may be relevant when planning recruitment, workforce needs and talent sourcing.

The RM1,000 Mobility Assistance Allowance could help companies reach candidates from outside their usual hiring area. This may be useful for employers that have difficulty finding suitable workers locally, especially for roles that require specific skills or experience.

The higher training support may also help eligible workers improve their skills while looking for new employment. This could potentially give employers access to a wider pool of candidates who may need additional training before taking on certain roles.

For HR teams, it is important to:

Keep updated on the latest EIS requirements from PERKESO
Understand how the mobility allowance may support recruitment
Consider candidates from a wider geographical area
Review workforce and hiring plans based on available talent
Check the latest eligibility and application requirements before advising employees

In short, the EIS changes may give employers more opportunities to connect with talent from different locations while supporting workers as they return to employment.

Key EIS Changes at a Glance

EIS Benefit	Current / Existing	Proposed Change
Mobility Assistance	—	RM1,000 one-off
Early Re-Employment Allowance	25%	50% of remaining unpaid JSA
Training Allowance	Existing rate	RM30 per day
Maximum Training Fee	RM4,000	RM7,000

The amendment package is intended to improve benefits for unemployed insured workers, encourage job mobility and strengthen PERKESO's employment services.

What Happens Next?

The EIS amendments have moved through Parliament, with the Employment Insurance System (Amendment) Bill 2025 recorded as passed by both the Dewan Rakyat and Dewan Negara.

For the 1 October 2026 implementation, employers and workers should check the latest information from PERKESO and the Ministry of Human Resources, particularly for the final eligibility requirements, application process and payment procedures.

PERKESO's September 2026 updates have highlighted the RM1,000 Mobility Assistance Allowance and other enhanced EIS benefits.

FAQ: Malaysia EIS 2026

What is the new EIS Mobility Assistance Allowance?

It is a proposed RM1,000 one-off payment for eligible insured workers who meet the requirements after accepting new employment, including the stated mobility conditions.

When does the RM1,000 EIS mobility allowance start?

Recent September 2026 reports cited by PERKESO state that the allowance is expected to take effect from 1 October 2026.

How much is the new EIS training allowance?

The amended provisions set the Training Allowance at RM30 per day.

What is the new EIS training fee limit?

The maximum training fee is proposed to increase from RM4,000 to RM7,000.

Who should employers contact for the latest EIS requirements?

Employers should refer to the latest information and implementation guidance from PERKESO and the Ministry of Human Resources, as specific eligibility and application procedures should be confirmed through the official implementation guidance.

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