*Cover image: PERKESO office and Employment Centre Plus in Kluang, Johor, by Dominic Nelson via Wikimedia Commons (CC BY-SA 4.0).*
> Quick answer: if your employer ended your job and it was not your choice or your fault, you can probably claim. Check that you have 12 months of EIS deductions on your payslips in the last two years, then apply within 60 days through PERKESO's LINDUNG Kerjaya portal. Do not wait for the final pay to be settled first.
Most Malaysian employees have a small "EIS" or "SIP" line on their payslip and never think about it. It is an unemployment insurance scheme set up under the Employment Insurance System Act 2017 (Act 800). From 1 October 2026 the law is called the Employment Insurance System and Employment Services Act 2017, and it pays better than many people expect. Here is how it works, using PERKESO's own statements and the Act.
Who can claim
You must be a contributor who lost your job involuntarily. Section 30 of Act 800 and The Star's 2 October 2026 explainer list what counts and what does not.
Counts as job loss: - retrenchment or redundancy; - a voluntary or mutual separation scheme (VSS/MSS); - the business closing down; - constructive dismissal, meaning you left because the employer seriously breached your contract. Section 30(2) also covers leaving because of threats, sexual harassment, or an unsafe workplace.
Does not count: - resigning of your own accord; - dismissal for misconduct; - your contract expiring, or the contracted work being completed; - retirement.
Contribution test: at least 12 monthly contributions in the 24 months before the job loss. The First Schedule of the Act excludes civil servants, statutory-body and local-authority staff, and most foreign workers. It also excludes anyone under 18 or over 60.
How much you get
The Job Search Allowance (Elaun Mencari Pekerjaan) is a percentage of your assumed monthly wage. That is PERKESO's figure based on the wages you contributed on, capped at RM6,000 a month.
- Month 1: 80%
- Month 2: 50%
- Months 3 and 4: 40%
- Months 5 and 6: 30%
How many months you get depends on your contribution record. Under the Fourth Schedule, a first claim gives 3 months for 12-15 contributions in the last 24 months, 4 months for 16-19, 5 months for 20-23, and 6 months for all 24.
Worked example (from The Star): someone earning RM5,000 with a full six months' entitlement receives RM4,000, RM2,500, RM2,000, RM2,000, RM1,500 and RM1,500, a total of RM13,500.
Our example at RM3,000: the same percentages give about RM2,400, RM1,500, RM1,200, RM1,200, RM900 and RM900, roughly RM8,100 over six months. The real figure can be slightly lower, because PERKESO maps wages into contribution bands rather than using the exact salary.
What changed on 1 October 2026
PERKESO announced the changes in a statement carried by Bernama and the NST on 1 October. They apply to people who lose their job from that date:
- Early Re-employment Allowance: if you find a new job before your allowance runs out, you get a lump sum of 50% of the unpaid balance, up from 25%. In The Star's RM5,000 example, someone hired after two months has RM7,000 unpaid and so receives RM3,500.
- Training fee: approved retraining is covered up to RM7,000, up from RM4,000.
- Training allowance: RM30 a day while on approved training.
- Mobility Assistance Allowance (new): a one-off RM1,000 if your new job is more than 100km from home.
PERKESO says the changes benefit more than 7 million contributors, with benefits averaging about RM3,300 per person.
How to claim, step by step
- Get your termination letter. It should state the reason, such as retrenchment, VSS or closure. If it says "resignation" when you were pushed out, raise it before you sign anything.
- Apply within 60 days of your last working day. Go online through LINDUNG Kerjaya or to any PERKESO counter.
- Have ready your MyKad, the termination letter, your bank account details and proof of salary, such as payslips. Missing documents slow a claim down, so bring everything on the first visit.
- Register on MYFutureJobs and keep showing job-search activity every month, or the allowance can stop.
If you are rejected
Under section 61 of Act 800, you can appeal PERKESO's written decision to the Social Security Appellate Board within 60 days of receiving it. If you then disagree with the Board, you can go to the High Court. The usual problems are a resignation-type exit, too few contribution months, or a late application. Check those three first. Our notice period and final pay guide covers what your employer still owes you.
*Sources: PERKESO statement of 1 Oct 2026 via Bernama and NST; The Star QuickCheck, 2 Oct 2026; Employment Insurance System Act 2017 (Act 800), ss.28, 30, 36 and 61 and the First, Third and Fourth Schedules (2021 consolidated text). PERKESO's own sites refused our connection on 13 Nov 2026, so the 2026 rates come from PERKESO's statement as reported.*
