KUALA LUMPUR (Nov 4): The Employment Insurance System (Amendment) Bill 2025, which seeks to expand coverage to include all job seekers and enhance benefits for insured employees, was tabled for its first reading in the Dewan Rakyat on Tuesday.
Human Resources Minister Steven Sim Chee Keong tabled the bill, with its second reading scheduled for the current parliamentary session.
Clause 2 of the bill proposes to amend the long title of the Act to extend its scope to include the provision of employment services to any person.
The bill also introduces the Mobility Assistance Allowance, which provides a one-off payment of RM1,000 to job seekers who secure employment more than 100km from their home.
Workers who lose their jobs will also be eligible for protection and training support worth up to RM25,000.
Under the proposed amendments, the Early Re-Employment Allowance will be raised to 50% from 25% of the remaining Job Search Allowance balance, while the Training Allowance will increase to RM30 per day from between RM10 and RM20 previously.
The Job Search Allowance structure remains unchanged, continuing to provide 80% of the previous salary in the first month, 50% in the second, 40% in the third and fourth months, and 30% in the fifth and sixth months.
In a separate statement, the HR Ministry said the amendments mark an important step in strengthening Malaysia’s social protection framework and expanding employment services under the Employment Insurance System administered by the Social Security Organisation or Perkeso.
The ministry said the proposed changes aim to enhance benefits for insured workers who lose their jobs, promote labour mobility, improve Perkeso’s operational efficiency in re-employment programmes, and strengthen overall governance under the Employment Insurance System.
“The amendments also reflect the government’s continued commitment to ensuring Malaysia’s social protection system remains inclusive, sustainable and resilient, while enabling displaced workers to return to the job market faster and more effectively,” the ministry added.