What is Sistem Insurans Pekerjaan (SIP)? A Complete Guide

Running a business isn’t easy, and taking care of your team is a big part of it.

That’s where EIS/Sistem Insurans Pekerjaan (SIP) helps!

Since 2018, this scheme has supported workers who lose their jobs—but it’s also important for employers like you.

Whether you run a small business or manage a big team, understanding EIS/SIP can make things smoother for you and your company.

In this article, we’ll break it down in a simple and friendly way. Let’s get started!

What is EIS/Sistem Insurans Pekerjaan (SIP)/EIS?

Think of EIS (Employment Insurance Scheme) as a safety net for employees who lose their jobs.

Run by PERKESO since January 2018, it provides financial aid to help job seekers cover expenses while they look for new work.

It also offers career counseling and job-hunting support to speed up the process.

As an employer, you contribute a small amount each month to keep this protection in place.

In return, your employees get peace of mind, knowing they have support if tough times come.

Plus, since PERKESO also runs SOCSO, you can trust that it’s a reliable system.

Why EIS/SIP Matters to Employers

You might be wondering, "How does EIS/SIP benefit my business?" It’s not just about helping employees—it’s a smart move for you too. Here’s why:

Less Stress, More Productivity

When employees know they have financial support if they lose their job, they worry less.

Less stress means they can focus better, work harder, and are more likely to stay with you longer.

Easier Layoff Process

Letting someone go is never easy, but EIS/SIP helps. Employees get financial aid and job-hunting support, making the transition smoother for both sides.

Better Employer Reputation

People want to work for companies that care. Supporting EIS/SIP shows you value your team, making it easier to attract and retain top talent.

A small contribution to EIS/SIP brings big benefits—loyal employees, smoother operations, and a stronger business. Win-win!

Who Needs to Pay for EIS/SIP?

If you're a private sector employer in Malaysia—whether you have one employee or a hundred—you must contribute to the Employment Insurance System (EIS) or Sistem Insurans Pekerjaan (SIP). It applies to all private businesses, big or small.

Who doesn’t need to contribute?

Government employees
Domestic workers (e.g., maids)
Self-employed individuals

What about employees?

Employees aged 18 to 59 are covered. However, if someone is 57 or older and has never contributed before, they don’t need to start now.

Both employers and employees contribute a small amount each month.

How Much Do You Pay for EIS/SIP?

Don’t worry, it’s super affordable! You and your employee each contribute 0.2% of their salary every month. That’s just 40 sen for every RM100 they earn.

For example:

Salary RM1,000 → You pay RM2, they pay RM2 = RM4 total
Salary RM3,000 → You pay RM5.90, they pay RM5.90 = RM11.80 total

New cap starting October 1, 2024: Contributions are based on a max salary of RM6,000. Even if they earn more, you only pay RM11.90, and they match it (RM23.80 total).

It’s a small amount for a great safety net. Check PERKESO’s full table for more details!

No.	Salary Amount	Employer Contribution	Employee Contribution	Total Contribution
1	More than RM30	RM0.05	RM0.05	RM0.10
2	More than RM30 but not more than RM50	RM0.10	RM0.10	RM0.20
3	More than RM50 but not more than RM70	RM0.15	RM0.15	RM0.30
4	More than RM70 but not more than RM100	RM0.20	RM0.20	RM0.40
5	More than RM100 but not more than RM140	RM0.25	RM0.25	RM0.50
6	More than RM140 but not more than RM200	RM0.35	RM0.35	RM0.70
7	More than RM200 but not more than RM300	RM0.50	RM0.50	RM1.00
8	More than RM300 but not more than RM400	RM0.70	RM0.70	RM1.40
9	More than RM400 but not more than RM500	RM0.90	RM0.90	RM1.80
10	More than RM500 but not more than RM600	RM1.10	RM1.10	RM2.20
11	More than RM600 but not more than RM700	RM1.30	RM1.30	RM2.60
12	More than RM700 but not more than RM800	RM1.50	RM1.50	RM3.00
13	More than RM800 but not more than RM900	RM1.70	RM1.70	RM3.40
14	More than RM900 but not more than RM1,000	RM1.90	RM1.90	RM3.80
15	More than RM1,000 but not more than RM1,100	RM2.10	RM2.10	RM4.20
16	More than RM1,100 but not more than RM1,200	RM2.30	RM2.30	RM4.60
17	More than RM1,200 but not more than RM1,300	RM2.50	RM2.50	RM5.00
18	More than RM1,300 but not more than RM1,400	RM2.70	RM2.70	RM5.40
19	More than RM1,400 but not more than RM1,500	RM2.90	RM2.90	RM5.80
20	More than RM1,500 but not more than RM1,600	RM3.10	RM3.10	RM6.20
21	More than RM1,600 but not more than RM1,700	RM3.30	RM3.30	RM6.60
22	More than RM1,700 but not more than RM1,800	RM3.50	RM3.50	RM7.00
23	More than RM1,800 but not more than RM1,900	RM3.70	RM3.70	RM7.40
24	More than RM1,900 but not more than RM2,000	RM3.90	RM3.90	RM7.80
25	More than RM2,000 but not more than RM2,100	RM4.10	RM4.10	RM8.20
26	More than RM2,100 but not more than RM2,200	RM4.30	RM4.30	RM8.60
27	More than RM2,200 but not more than RM2,300	RM4.50	RM4.50	RM9.00
28	More than RM2,300 but not more than RM2,400	RM4.70	RM4.70	RM9.40
29	More than RM2,400 but not more than RM2,500	RM4.90	RM4.90	RM9.80
30	More than RM2,500 but not more than RM2,600	RM5.10	RM5.10	RM10.20
31	More than RM2,600 but not more than RM2,700	RM5.30	RM5.30	RM10.60
32	More than RM2,700 but not more than RM2,800	RM5.50	RM5.50	RM11.00
33	More than RM2,800 but not more than RM2,900	RM5.70	RM5.70	RM11.40
34	More than RM2,900 but not more than RM3,000	RM5.90	RM5.90	RM11.80
35	More than RM3,000 but not more than RM3,100	RM6.10	RM6.10	RM12.20
36	More than RM3,100 but not more than RM3,200	RM6.30	RM6.30	RM12.60
37	More than RM3,200 but not more than RM3,300	RM6.50	RM6.50	RM13.00
38	More than RM3,300 but not more than RM3,400	RM6.70	RM6.70	RM13.40
39	More than RM3,400 but not more than RM3,500	RM6.90	RM6.90	RM13.80
40	More than RM3,500 but not more than RM3,600	RM7.10	RM7.10	RM14.20
41	More than RM3,600 but not more than RM3,700	RM7.30	RM7.30	RM14.60
42	More than RM3,700 but not more than RM3,800	RM7.50	RM7.50	RM15.00
43	More than RM3,800 but not more than RM3,900	RM7.70	RM7.70	RM15.40
44	More than RM3,900 but not more than RM4,000	RM7.90	RM7.90	RM15.80
45	More than RM4,000 but not more than RM4,100	RM8.10	RM8.10	RM16.20
46	More than RM4,100 but not more than RM4,200	RM8.30	RM8.30	RM16.60
47	More than RM4,200 but not more than RM4,300	RM8.50	RM8.50	RM17.00
48	More than RM4,300 but not more than RM4,400	RM8.70	RM8.70	RM17.40
49	More than RM4,400 but not more than RM4,500	RM8.90	RM8.90	RM17.80
50	More than RM4,500 but not more than RM4,600	RM9.10	RM9.10	RM18.20

How to Register for EIS/Sistem Insurans Pekerjaan (SIP) with PERKESO

Getting started with EIS/SIP is easy! Here’s what you need to do:

Download the Forms – Go to the PERKESO website and get:
- SIP 1A & SIP 2A (for most employees)
- SIP 2 (for new hires who’ve never contributed to PERKESO) - Download Here
Fill Them In – Enter company details and employee info (name, IC number, salary).
Submit the Forms – Bring them to the nearest PERKESO branch (no online submission yet).

Need help? Contact PERKESO at perkeso@perkeso.gov.my or reach out to their support team. Once registered, you're ready to start contributing!

How to Pay Your EIS/Sistem Insurans Pekerjaan (SIP) Contributions

Paying your EIS contributions is easy! Choose the method that works best for you:

1. Internet Banking

If you use a payroll system, you can generate a bulk payment file and upload it to your bank. Your contributions update automatically!

2. PERKESO Assist Portal

Log in to the Assist Portal
Go to “EIS – Contribution”
Upload your payment file
Pay via FPX (limits: RM1–RM30,000 for personal accounts, RM2–RM1 million for businesses)

3. Electronic Funds Transfer (EFT)

For large payments, contact PERKESO at 1-300-22-8000 or email perkeso@perkeso.gov.my for transfer details.

4. Cheque or Money Order

Payable to “Pertubuhan Keselamatan Sosial” (PERKESO)
Write your company name, employer code, and payment month/year on the back
Send it to PERKESO

5. Bank Counter

Pay at Maybank, RHB, or Public Bank—just bring your payment details.

Penalties for Employers Who Fail to Contribute

Employers who fail to contribute to EIS may face penalties, including:

A fine of up to RM10,000 or imprisonment for up to 2 years.
Payment of overdue contributions along with late payment interest.

Letting someone go or seeing them struggle is never easy. That’s where EIS/Sistem Insurans Pekerjaan (SIP) helps.

For just a few ringgit a month, you’re giving your employees a safety net while giving yourself peace of mind.

A secure team today means a stronger business tomorrow. So, register for EIS/SIP, make your contributions, and create a workplace where people thrive.

Need to hire the right talent?

If you’re hiring, post your jobs on Maukerja or Ricebowl—with over 6 million jobseekers in Malaysia, your next top talent is waiting!