Malaysia EIS contribution guide 2026
Learn how EIS contributions work in Malaysia, including employee rates, employer rates, job loss benefits, eligibility, claim situations and monthly payroll examples.
EIS Quick Summary
EIS, also known as the Employment Insurance System or Sistem Insurans Pekerjaan (SIP), is Malaysia's job-loss protection scheme administered by PERKESO.
Calculate Your EIS Contribution
Want to know how much EIS you and your employer contribute each month? Use our free EIS Calculator to estimate employee and employer contributions based on your salary.
Calculate My EIS →On This Page
What Is EIS in Malaysia?
The Employment Insurance System (EIS), also called Sistem Insurans Pekerjaan (SIP), is a statutory contribution scheme administered by PERKESO. Its main purpose is to protect eligible employees when they lose employment through qualifying circumstances.
EIS is different from EPF and SOCSO. EPF is mainly for retirement savings, SOCSO focuses on social security protection such as employment injury and invalidity, while EIS focuses on job-loss protection, temporary income replacement and re-employment support.
Who Needs to Contribute to EIS?
EIS generally applies to Malaysian citizens and permanent residents aged 18 to 60 who work in the private sector under a contract of service or apprenticeship.
Government employees, domestic workers and the self-employed are generally exempt. Employees aged 57 and above who had never contributed to EIS before reaching age 57 are also exempt.
EIS Contribution Rates 2026
EIS contributions are set at a total of 0.4% of the employee's assumed monthly salary: 0.2% paid by the employer and 0.2% deducted from the employee's salary. The current contribution ceiling is an assumed monthly salary of RM6,000.
| Reference Wage Level | Employee EIS | Employer EIS | Total EIS |
|---|---|---|---|
| RM2,000 | RM3.90 | RM3.90 | RM7.80 |
| RM4,000 | RM7.90 | RM7.90 | RM15.80 |
| RM5,000 | RM9.90 | RM9.90 | RM19.80 |
| RM6,000 and above | RM11.90 | RM11.90 | RM23.80 |
Which Payments Are Subject to EIS?
Under the Employment Insurance System Act, wages generally include monetary remuneration such as salary, leave pay, holiday pay, overtime and extra work on holidays. Some payments are specifically excluded.
| Payment Type | EIS Treatment | Practical Note |
|---|---|---|
| Basic Salary / Wages | Yes | Regular cash wages are included. |
| Overtime Payment | Yes | Overtime forms part of wages under Act 800. |
| Leave / Holiday Pay | Yes | Payments for leave, holidays and extra work on holidays are included. |
| Commission / Service Charge | Generally Yes | Cash remuneration of this nature is generally contributable. |
| Travelling Allowance / Concession | No | Travelling allowance and the value of travelling concessions are excluded. |
| Special Employment Expense Reimbursement | No | Amounts paid to cover special expenses incurred because of employment are excluded. |
| Retirement / Discharge Gratuity | No | Gratuity payable on discharge or retirement is excluded. |
| Annual Bonus | No | Annual bonus is specifically excluded from wages under Act 800. |
How EIS Contributions Are Calculated
EIS is not normally calculated by multiplying the exact salary by 0.2% in every case. Payroll should match the employee's monthly wages to the official PERKESO contribution bracket.
Example: RM4,000 Monthly Salary
For monthly wages of RM4,000, the statutory EIS contribution at this reference point is:
| Monthly wages | RM4,000 |
| Employee EIS | RM7.90 |
| Employer EIS | RM7.90 |
| Total EIS contribution | RM15.80 |
EIS Contribution Examples by Salary
The examples below show selected contribution points under the statutory schedule.
| Monthly Salary | Employee EIS | Employer EIS | Total EIS |
|---|---|---|---|
| RM2,000 | RM3.90 | RM3.90 | RM7.80 |
| RM4,000 | RM7.90 | RM7.90 | RM15.80 |
| RM5,000 | RM9.90 | RM9.90 | RM19.80 |
| RM6,000 | RM11.90 | RM11.90 | RM23.80 |
| Above RM6,000 | RM11.90 | RM11.90 | RM23.80 |
Because the current assumed monthly wage ceiling is RM6,000, EIS contributions generally do not increase beyond the maximum scheduled contribution once wages exceed the ceiling.
What Benefits Does EIS Provide?
EIS is designed to provide temporary income replacement and re-employment assistance after a qualifying loss of employment. Benefits depend on eligibility, contribution history and PERKESO approval.
Job Search Allowance
Temporary replacement income may be paid for 3 to 6 months depending on contribution qualifying conditions.
Reduced Income Allowance
Support may apply when a person with multiple employments loses one or more, but not all, income sources.
Training Support
Eligible insured persons may receive skills training support during unemployment or after re-employment.
Re-employment Assistance
PERKESO provides job-matching and employment services, including support through MYFutureJobs.
Which Job-Loss Situations May Qualify?
A loss of employment may qualify when it falls within situations recognised under the EIS Act and the employee meets contribution and application conditions.
| May Qualify | Generally Does Not Qualify |
|---|---|
| Normal retrenchment / redundancy | Ordinary voluntary resignation |
| VSS / MSS | Expiry of a fixed-term contract |
| Business closure / bankruptcy | Retirement |
| Constructive dismissal | Dismissal due to employee misconduct |
| Resignation due to workplace threats or sexual harassment | Completion of project-based employment |
| Resignation after being ordered to perform dangerous duties outside job scope | Unconditional mutual termination without qualifying terms |
Does EIS Affect Take-Home Pay?
Yes. The employee portion of EIS is deducted from monthly salary, so it slightly reduces take-home pay. The employer portion is paid separately and does not reduce the employee's net salary.
EIS vs EPF vs SOCSO
| Scheme | Main Purpose | Who Contributes? | Common Payroll Effect |
|---|---|---|---|
| EPF / KWSP | Retirement savings | Employee and employer | Usually the largest statutory salary deduction. |
| SOCSO / PERKESO | Social security, employment injury and invalidity protection | Employee and employer for many eligible employees | Monthly contribution based on statutory wage schedule. |
| EIS / SIP | Job-loss protection and re-employment support | Employee and employer | Small monthly contribution based on EIS wage schedule. |
EIS Contribution Deadline
EIS contributions payable for a month must generally be paid no later than the 15th day of the following month.
| Contribution Month | Payment Deadline |
|---|---|
| January 2026 | On or before 15 February 2026 |
| February 2026 | On or before 15 March 2026 |
If EIS is payable for January 2026 wages, the employer should submit the contribution by 15 February 2026.
- Confirm EIS eligibility
- Use the correct wage bracket
- Deduct the employee contribution
- Pay both portions by the deadline
Payroll Checklist for Employers
- Confirm whether each employee is covered under EIS rules.
- Use the current PERKESO contribution schedule and RM6,000 wage ceiling.
- Identify which salary components form part of EIS wages.
- Deduct the employee portion correctly.
- Pay the employer portion together with the employee portion.
- Submit contributions by the statutory deadline and retain payroll records.
Sources & Verification
This guide was last verified in August 2026 against current PERKESO guidance and the Employment Insurance System Act 2017, including the RM6,000 contribution ceiling, contribution rates, eligibility, loss-of-employment rules and payment period.
Frequently Asked Questions
Is EIS contribution mandatory for employees in Malaysia?
EIS is generally mandatory for eligible Malaysian citizens and permanent residents aged 18 to 60 working in the private sector under a contract of service, subject to statutory exemptions.
How much EIS does an employee contribute every month?
The employee contribution structure is 0.2% of assumed monthly salary, subject to the official PERKESO wage-bracket schedule and RM6,000 ceiling.
How much EIS does an employer contribute?
The employer contribution structure is also 0.2% of assumed monthly salary. The employer portion is paid separately and is not deducted from take-home salary.
Is overtime subject to EIS?
Yes. The EIS Act includes overtime and extra work on holidays within the definition of wages.
Is annual bonus subject to EIS?
No. Annual bonus is specifically excluded from the definition of wages under the EIS Act.
What is the EIS wage ceiling?
The current contribution ceiling is an assumed monthly salary of RM6,000. Wages above this ceiling are generally subject to the maximum scheduled contribution.
Can EIS help if I lose my job?
Eligible insured persons may receive benefits after a qualifying loss of employment if they meet contribution conditions and other requirements.
Does EIS apply if I resign?
Ordinary voluntary resignation generally does not qualify. Certain resignations involving constructive dismissal, workplace threats, sexual harassment or dangerous duties outside the job scope may fall within recognised loss-of-employment situations.
How long do I have to apply for EIS benefits?
An eligible insured person should apply within 60 days from the date of loss of employment.
When must employers pay EIS contributions?
Contributions for a month must generally be paid no later than the 15th day of the following month.
Is EIS the same as SOCSO?
No. SOCSO focuses on social security protection such as employment injury and invalidity, while EIS focuses on qualifying job loss and re-employment assistance.