An insurance scheme designed to be a safety net for retrenched staff is set to kick off next year.
Prime Minister Datuk Seri Najib Razak said the Employment Insurance System (EIS) will benefit around 6.5 million employees in the private sector.
“EIS is aimed at employees who have lost their jobs. It will be a social safety net meant to provide financial help and assistance for workers in their job search,” he said in a statement.
He added that employees will get temporary financial help and will be assisted in looking for a new job. These employees will also be given retraining or additional training to upgrade their skills.
The new policy will be tabled in the June meeting of Parliament, he said, adding that it is expected to be implemented on January 1, 2018. Payment of the benefits will start on January 1, 2019.
The scheme will be funded through premiums paid by the employer and employees, and Social Security Organisation (Socso) will be managing the scheme.