Malaysia has witnessed a significant rise in retrenchments during the first half of 2026, with more than 42,800 workers reportedly losing their jobs. The most affected are people in their 20s and 30s, especially those employed in manufacturing industries, wholesale and retail trade, administrative support services, and child care and related services. With increasingly high cost of operations, worldwide economic uncertainty, and new changes in the workforce caused by AI, many employees are seeking financial support as they transition toward new job opportunities.
If you or someone you know just recently got discharged from work, PENGADAAN (EI) managed by PERKESO (SOCSO) can lend him or her temporary financial amounts and employment services. This step-by-step guide guides you on how to apply for SOCSO EIS benefit for retrenchment.
SOCSO Employment Insurance System (EIS)
The Employment Insurance System (EIS) provides a social protection initiative that provides temporary financial and career support to ineligible employees that lose their job involuntarily. EIS also assists members with finding new work by offering Career Coaching, Job Matching and skills training and pays them the monthly financial allowance, Job Search Allowance (JSA).
One of the key points applicants need to keep in mind is that any claims for EIS will have to be submitted within 60 days of the day of Loss of Employment (LOE). Failure to complete the deadline may cause disqualification.
Who can claim SOCSO EIS benefit?
You should determine if your loss of employment meets the guidelines of the Employment Insurance System prior to starting your application.
In general, you’ll be eligible if you lost your job due to a retrenchment, redundancy, company closure, an agreement to go on a Voluntary Separation Scheme or because your company went into bankruptcy. Part of having a constructive dismissal includes forfeiting certain benefits, such as not getting paid, and unsafe working environments may also be covered in certain situations.
The members of the scheme are those leaving the firm under normal circumstances (as opposed to voluntary resignation without valid legal reason) or are terminated by the firm due to proven misconduct or reach the age of retirement for the firm.
Applicants also have to generally have been contributing to the EIS fund for at least 12 months in the last 24 months prior to the event of retrenchment.
Documents Required Before Applying
Preparations can expedite the application process and minimize delays. You are required to have a copy of your MyKad, your official termination letter or retrenchment letter, your bank statement and your payslips. Ensure that the best quality copies are scanned and can be read on the line before uploading to the online portal.
Guide to Claim SOCSO EIS Retrenchment Benefits
Step 1: Register on the PERKESO Portal
Read on the official website of the PERKESO or the mobile app of the PERTIMBATAN HATIN PERKESO. To register, a first time user must attach an account by signing up as an “Insured Person” by providing his/her MyKad number. Once registered and once in your account, you can use the services of the Employment Insurance System.
Step 2: Submit Your Loss of Employment (LOE) Claim
When you log in, click on the EIS (Lindung Kerjaya) header and then apply for benefits. You will need to provide details about your last employer, when you left your last job, your last monthly salary and other work history information. Kindly check all the information properly before moving to the next step.
Step 3: Upload Required Documents
Submit all the necessary documents such as your MyKad, termination letter, bank statement and recent pay slips. Make sure all paperwork is complete and easy to see. The application may be manually reviewed and take longer to process due to insufficient or unclear documentation.
Step 4: Sign up for MYFutureJobs
“All EIS beneficiaries are to be registered in MYFutureJobs. Complete your profile with your work experience, your schooling, your work skills and your future objectives. The platform will then suggest the appropriate work opportunities available based on your expertise.
Step 5: Wait for Approval and Receive Benefits
Normally PERKESO considers an application within 7 working days from the date of the application. It normally takes around 14 days for a first payment of the Job Search Allowance to be credited to your registered bank account once it’s approved.
Applicants will also be sending regular updates about the employment support services, interview and available training opportunities.
How Much Financial Assistance Can You Receive?
Successful applicants will be paid the Job Search Allowance which is a percentage of their previous insured earnings, up to a maximum level.
The 1st month covers 80% of insured salary and 50% of insured salary the 2nd month. Payments are cut to 40% in the third and fourth month and 30% in the fifth and sixth month of the insured period. With the cap at RM6,000, they may withdraw a maximum of RM4,800 in the first month.
More Money Updates
How Can You Apply Online?
Check out the fastest way to get a Pag-IBIG SAFE Loan.
How Do You Track SSS Loan?
Find the simple steps to check your loan status.
Why Is SSS Taking Action?
Uncover why employers face claims over unpaid dues.
Why Did Bank Indonesia Change?
See the latest update on cash payment services.
Is Your Loan App Approved?
Browse the lending apps affected by the SEC crackdown.
Important Conditions to Continue Receiving Benefits
Must participate in job-seeking activities to attain EIS benefits. It is important for beneficiaries to keep employment status up to date on MYFutureJobs regularly and for them to work with their assigned PERKESO Employment Services Officer.
It is also expected that applicants will be required to spend at least 3 months interviewing for jobs and document their job search efforts. Failure to meet these conditions could have repercussions on any future payments for benefits.
If you find a job before you run out of benefits, you or your employer may be eligible for support from the Early Re-Employment Allowance (ERA), paying the beneficiary if a job is secured before they’re expected to run out of benefits.
FAQs
When is my SOCSO EIS claim due?
The application must be received in this office within 60 days after Loss of Employment (LOE). Late applications may not be accepted.
Who can claim EIS retrenchment benefits?
Those who lose their jobs due to retrenchment, redundancy, company closure, VSS, MSS or other covered reasons for a loss of job may become eligible if they satisfy either of the contribution requirements.
Can a company go for EIS if employees voluntarily resign?
No. If a worker who has resigned without proper legal justification qualifies for a claim for EIS, they will not get benefits.
