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Among the measures highlighted are a RM1,000 Mobility Assistance Allowance, higher training support, and an increase in the Early Re-Employment Allowance.
Malaysia employers should keep an eye on developments under the Employment Insurance System (EIS), following the proposed amendments to the Employment Insurance System Act 2017.
The Employment Insurance System (Amendment) Bill 2025 was tabled for its first reading in the Dewan Rakyat on 4 November 2025. The Bill includes measures intended to enhance support for insured workers who lose their jobs, promote labour mobility, and support their return to employment.
One of the proposed measures is a one-off RM1,000 Mobility Assistance Allowance for eligible Social Security Organisation (PERKESO) contributors who secure new employment located more than 100km from their homes.
As reported by The Star, Human Resources Minister Ramanan Ramakrishnan said the allowance is expected to take effect on 1 October.
Supporting workers who take up jobs farther from home
Cited by The Star, the Malaysian Employers Federation (MEF) has said the Mobility Assistance Allowance could help job seekers manage the upfront costs associated with relocating or travelling further for work.
Datuk Dr Syed Hussain Syed Husman, MEF Senior Adviser for Government, Media and International Engagement, said the initiative could improve job matching by allowing vacancies to be matched with suitable workers beyond their immediate local areas.
He noted that this could be relevant in sectors and regions where employers continue to experience difficulty sourcing workers with the required skills and experience.
However, MEF encouraged PERKESO to clearly communicate the eligibility criteria, application procedures and payment timelines for the allowance to workers and employers.
Other proposed EIS enhancements
The Mobility Assistance Allowance is one of several enhancements associated with the proposed EIS amendments.
Other measures highlighted include:
- an increase in the Early Re-Employment Allowance from 25% to 50% of the remaining unpaid Job Search Allowance,
- an increase in the daily Training Allowance from RM10 to RM30, and
- an increase in the maximum training fee covered from RM4,000 to RM7,000.
The Job Search Allowance payment structure is expected to remain unchanged, providing eligible claimants with:
- 80% of previous salary in the first month,
- 50% in the second month,
- 40% in the third and fourth months, and
- 30% in the fifth and sixth months.
The Bill also proposes updates to definitions and eligibility criteria, including provisions relating to gig workers and contract-based employees. It further includes proposed improvements to EIS administration, re-employment programmes, claims processes and governance.
For employers, the proposed measures may be relevant to recruitment and workforce-planning efforts, particularly where vacancies require workers to take up employment outside their home area. Employers should monitor updates from PERKESO and the Human Resources Ministry for confirmation of the final requirements, eligibility conditions and implementation arrangements.
Lead image / Minister Ramanan's Facebook
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