The Employment Insurance System Act 2017 covers all employees who are:

  • Malaysian citizens/ permanent residents/ temporary residents
  • Aged 18-60
  • Working in the private sector and contribute to EIS
  • Working under a contract of service



Insured Persons (IP) are eligible to receive benefits if they:

  • Apply within 60 days from the date of loss of employment (LOE)
  • Satisfy the Contributions Qualifying Conditions (CQC) i.e. have paid monthly contributions for a minimum number of months
  • Loss of employment (LOE) as defined in the EIS Act


LOE occurs if the contract of service of an Insured Person (IP) is terminated or becomes void. It includes:

  • Normal retrenchment
  • VSS/MSS (voluntary/mutual separation schemes)
  • Closure of workplace due to natural disasters (force majeure)
  • Bankruptcy or closure of the business
  • Constructive dismissal
  • Resignation due to sexual harassment or threats made in the workplace
  • Resignation after being ordered to perform dangerous duties that are not within the job scope


The following CANNOT be accepted as LOE:

  • Dismissal due to employee misconduct
  • Voluntary resignation
  • Retirement
  • Expiry of a fixed-term contract or completion of a project