The Employment Insurance System (EIS), which will affect some 6.5 million local workers in the private sector, will be tabled in parliament in July 2017.

Perkeso Chief Executive Officer, Datuk Dr Mohammed Azman Aziz, said the rate of contribution would be announced once the EIS Bill was approved by parliament.

Speaking at a briefing here today, Mohamed Azman said, among the system’s objectives were to provide income protection and increase employability to those who lost their jobs.

The Human Resources Ministry (MOHR) said the Employment Insurance System will yield significant economic benefits to the country and businesses. This can be seen in other countries implementing EIS or equivalent schemes.

Among others, employment service and training programmes of the EIS will facilitate creating a more efficient and effective matching of supply and demand, which translate into better functioning of labour market and higher productivity. The ministry added that being an open economy country, the implementation of the EIS is one the most important steps in preparing the Malaysian labour market to face the socio-economic challenges, particularly the imminent impacts of the Fourth Industrial Revolution.

Bernama / NST