How to Claim PERKESO Employment Insurance System (LINDUNG KERJAYA)

Losing a job can be a stressful experience, especially when it creates uncertainty about your financial situation and career future. Whether you were retrenched in Malaysia, affected by company restructuring, or experienced another form of job loss, understanding the available support systems can help you manage this transition more effectively.

One important financial and employment support programme available to eligible Malaysian workers is the PERKESO Employment Insurance System (EIS), also known as LINDUNG KERJAYA.

The PERKESO Employment Insurance System (EIS) was established to provide income replacement and employment assistance for insured persons who experience a Loss of Employment (LOE). Eligible applicants can receive financial assistance, job search support, and employment services to help them return to the workforce.

What Is PERKESO Employment Insurance System (EIS) / LINDUNG KERJAYA?

The Employment Insurance System (EIS), known as LINDUNG KERJAYA, is a social protection programme managed by PERKESO (Social Security Organisation) to support employees who have lost their jobs.

The programme aims to provide:

• Temporary income support during unemployment
• Assistance in finding new employment
• Career guidance and employment services
• Skills training opportunities to improve employability

PERKESO provides re-employment assistance through Employment Services Officers (ESO), and eligible insured persons are required to register with MYFutureJobs as part of their job search efforts to receive suitable job matching support.

Who Is Eligible to Claim PERKESO EIS After Losing a Job?

You may be eligible to claim PERKESO Employment Insurance System (EIS) benefits if you meet the required conditions. Generally, applicants must:

• Be an insured person covered under the Employment Insurance System;
• Meet the applicable Contribution Qualifying Conditions (CQC);
• Experience a Loss of Employment (LOE) recognised under the Employment Insurance System Act 2017; and
• Submit the application within 60 days from the date of Loss of Employment (LOE).

What Types of Job Loss Are Covered Under PERKESO EIS?

A common misconception is that EIS only covers retrenchment cases. However, PERKESO recognises several situations as Loss of Employment (LOE).

1. Retrenchment

Employees who lose their jobs due to:

• Company restructuring
• Redundancy
• Downsizing
• Business changes

may qualify for EIS benefits if they meet the eligibility requirements.

2. Voluntary Separation Scheme (VSS) / Mutual Separation Scheme (MSS)

Employees who leave employment under approved separation schemes may also be covered.

3. Company Closure or Bankruptcy

Employees affected by:

• Business closure
• Company bankruptcy
• Workplace closure due to force majeure

may qualify for assistance.

4. Other Recognised Circumstances

PERKESO also recognises certain other circumstances, including constructive dismissal, breach of contract terms and conditions by the employer, resignation due to threats to the employee or their family, sexual harassment, or resignation after being instructed to perform dangerous duties outside the job scope.

What Does NOT Qualify as Loss of Employment (LOE)?

Examples of circumstances that are generally excluded from Loss of Employment (LOE) include:

• Voluntary resignation by the insured person;
• Expiry or completion of a fixed-term employment contract;
• Termination due to misconduct;
• Mutual termination of the employment contract without applicable terms and conditions; and
• Mandatory retirement.

What Benefits Can You Receive Under PERKESO EIS?

Eligible applicants may receive several types of support under LINDUNG KERJAYA.

1. Job Search Allowance (JSA)

The Job Search Allowance (JSA) provides temporary income replacement for eligible insured persons for a period of 3 to 6 months, subject to the applicable Contribution Qualifying Conditions (CQC). The benefit is calculated based on the insured person's assumed monthly wage according to the following payout schedule:

The current wage ceiling for EIS contributions is RM6,000 per month, effective from 1 October 2024. To remain eligible for EIS support, applicants must be able to work, available to work and actively seeking employment, and may be required to participate in employment services and job-matching activities through PERKESO and MYFutureJobs.

2. Early Re-employment Allowance (ERA)

The Early Re-employment Allowance (ERA) provides an incentive to eligible JSA recipients who return to employment during their JSA period. The ERA is paid at 25% of the remaining unpaid JSA balance, subject to the applicable requirements.

3. Reduced Income Allowance (RIA)

The Reduced Income Allowance (RIA) provides income replacement for insured persons who work for more than one employer and lose one or more, but not all, sources of employment income.

4. Training Allowance and Training Fees

Eligible applicants may receive support for skills development and retraining, including:

• Vocational training
• Professional courses
• Career enhancement or reskilling programmes

PERKESO provides training fee support of up to RM4,000 for eligible applicants. Eligible participants undergoing approved training may also receive a daily training allowance of RM10 to RM20, subject to applicable requirements.

How to Claim PERKESO EIS After Losing Your Job: Step-by-Step Guide

Step 1: Confirm Your Loss of Employment (LOE)

Before applying, prepare the relevant employment and supporting documents. Depending on your circumstances, these may include:

• Termination or retrenchment letter
• Salary slips
• MyKad or other required identification documents
• Bank account information
• Employment or contract documents
• VSS/MSS documentation, where applicable
• Other supporting documents requested by PERKESO

Ensure the reason for job loss is clearly stated.

Step 2: Check Your EIS Eligibility

Before submitting your application, confirm that:

• You have sufficient PERKESO EIS contributions
• Your job loss meets the LOE definition
• You apply within 60 days

Missing the application deadline may affect your eligibility for benefits.

Step 3: Submit Your PERKESO EIS Application

Applications can be submitted online through PERKESO's Employment Insurance System services or through the relevant government digital service, and applicants may also seek assistance from a PERKESO office. Applicants who lose their jobs and qualify under the EIS definition can submit applications online through government digital services.

Step 4: Register With MYFutureJobs

Eligible applicants are required to enrol with MYFutureJobs as part of their job-search activities, where they can receive job-matching and employment support. This helps PERKESO provide:

• Job matching assistance
• Employment opportunities
• Career support

Step 5: Attend Career Support and Training Programmes

Depending on your situation, PERKESO may provide:

• Career counselling
• Job search assistance
• Skills training recommendations
• Employment matching services

These programmes are designed to help unemployed individuals return to work faster.

Documents Required for PERKESO EIS Application

Prepare the following documents before applying:

• MyKad or identity card
• Termination or retrenchment letter
• Salary slips, including the required six-month period from the LOE date
• Bank account information
• Employment or contract details
• Other supporting documents requested by PERKESO

PERKESO may require additional declarations or supporting documents if certain mandatory documents are unavailable.

Common Mistakes to Avoid When Applying for PERKESO EIS

1. Applying After the 60-Day Deadline

One of the most common mistakes is delaying the application. Always submit your EIS claim within 60 days from your Loss of Employment (LOE) date.

2. Not Preparing Complete Documents

Missing documents may delay the processing of your application. Prepare all employment and identification documents before submission.

3. Not Actively Searching for Jobs

EIS is designed not only to provide financial assistance but also to support re-employment. Applicants should actively participate in job search activities and employment programmes.

How PERKESO EIS Helps You Find a New Job

Beyond financial assistance, PERKESO EIS supports re-employment through employment services, job matching, career support and skills development opportunities. Key benefits include:

• Job matching support
• Career guidance
• Skills development opportunities
• Access to employment services

For professionals who are actively looking for new opportunities, combining EIS support with an effective job search strategy can improve the chances of returning to employment faster.

Frequently Asked Questions (FAQ)

How long do I have to apply for PERKESO EIS after losing my job?

You must submit your PERKESO EIS application within 60 days from your Loss of Employment (LOE) date.

Can retrenched employees claim PERKESO EIS?

Yes. Employees affected by retrenchment may apply for EIS benefits if they meet PERKESO’s eligibility requirements, including contribution conditions and application deadlines.

Is PERKESO EIS a loan?

No. PERKESO EIS benefits are a social protection support programme designed to provide income assistance and employment support for eligible insured persons who lose their jobs.

How much can I receive from PERKESO EIS?

The amount and duration of EIS benefits depend on your eligibility, Contribution Qualifying Conditions (CQC), assumed monthly wage and the specific benefit approved by PERKESO. For the Job Search Allowance (JSA), payments follow the applicable percentage schedule (ranging from 80% down to 30%) for up to six months, subject to the relevant requirements.

Do I need to find a job while receiving EIS benefits?

Yes. EIS is intended to support re-employment. Applicants must be able to work, available to work and actively seeking employment, and may be required to participate in PERKESO employment services and job-matching activities.

Conclusion

Losing a job can create financial and emotional challenges, but understanding available support systems can help you manage the transition more effectively.

If you have experienced job loss in Malaysia, checking your eligibility and applying for PERKESO Employment Insurance System (EIS) / LINDUNG KERJAYA can be an important early step in managing your employment transition. By submitting your application within the required timeline, preparing the necessary documents, and actively participating in job search activities, you can access valuable financial and career support.

At the same time, updating your resume, improving your skills, and exploring new career opportunities can help you move forward with confidence. With the right resources and preparation, your next career opportunity may be closer than you expect.