1-minute Read: What Changed?
Malaysia’s Employment Insurance System (EIS), known in Malay as Sistem Insurans Pekerjaan (SIP), has been overhauled by the Employment Insurance System (Amendment) Act 2026, Act A1796. The changes touch two groups in different ways.
For workers who lose their jobs, PERKESO now pays more. Higher allowances and a brand-new RM1,000 relocation payment apply to job losses on or after 1 October 2026.
For employers, a new duty is coming. Under the new Section 45F, companies will have to tell PERKESO about a vacancy before filling it, and update PERKESO once the role is filled. Industry sources point to 2 January 2027 as the start date.
| Date | Who it affects | What happens |
|---|---|---|
| 1 October 2026 | Insured workers who lose their jobs | Enhanced EIS benefits and the new Mobility Assistance Allowance take effect |
| 2 January 2027 (expected) | All employers | Section 45F vacancy notification duty begins, subject to the official Gazette commencement date |
What is EIS, and how did the law change?
EIS has run since 1 January 2018 under the Employment Insurance System Act 2017 (Act 800). It replaces part of a worker’s income after an involuntary job loss and helps them find work again. PERKESO now markets it as LINDUNG KERJAYA.
To claim, an insured person must apply within 60 days of losing the job and meet the contribution conditions. Covered situations include retrenchment, VSS/MSS, business closure or bankruptcy, constructive dismissal, and resignation due to sexual harassment or threats at work.
The amending Bill was tabled in the Dewan Rakyat on 4 November 2025 and passed by the Dewan Negara on 12 March 2026. In February 2026 the Cabinet agreed to rework the original flat RM10,000 fine for unreported vacancies into a tiered structure. Act A1796 was published in the Gazette on 15 September 2026, and its provisions come into force on dates set by the Minister.
Enhanced EIS benefits from 1 October 2026
Four benefits improve, and they apply only to job losses that happen on or after 1 October 2026. Someone who lost their job in September 2026 stays on the old rates.
| Benefit (Malay name) | Before | From 1 Oct 2026 | How it works |
|---|---|---|---|
| Early Re-employment Allowance (EBSA) | 25% of unpaid Job Search Allowance | 50% of unpaid Job Search Allowance | Lump sum for finding a new job before your Job Search Allowance runs out |
| Training Allowance (EL) | RM10–RM20 per day, based on salary | RM30 per day, flat rate | Paid for each day of approved training attended |
| Training Fee (FL) | Up to RM4,000 | Up to RM7,000 | Course fees covered by EIS for approved upskilling |
| Mobility Assistance Allowance (EBM) | Did not exist | RM1,000, one-off | New: for taking a job at least 100 km from home |
A quick example: say your Job Search Allowance entitlement still had RM7,000 unpaid when you started a new job. Under the old rate, you would get RM1,750 as EBSA. Under the new rate, you get RM3,500.
Who qualifies for the RM1,000 Mobility Assistance Allowance?
PERKESO’s FAQ sets these conditions:
- Your job loss falls within the meaning of Act 800, and you have reported for duty at the new workplace.
- The new workplace is not less than 100 km from where you live, measured using Google Maps, and it is in Malaysia.
- You report for duty within 12 months of your last Job Search Allowance approval (or EBSA approval).
- You apply within 60 days of reporting for duty, with your offer letter or contract and the new employer’s confirmation.
- It does not apply to people receiving Reduced Income Allowance (EPB).
Payment goes straight to your bank account within 14 days of approval. Apply through the LINDUNG Kerjaya portal.
Section 45F: the new vacancy reporting duty for employers
Once Section 45F is in force, every vacancy or newly created position must be reported to PERKESO in writing before you hire for it. After the role is filled, you must update PERKESO within 7 days.
The pre-hire notice is the step that carries a fine. The post-hire update keeps PERKESO’s records accurate, and PERKESO says it can also pick up hires automatically from new-employee registrations and contributions.
The notice is made online through MYFutureJobs, PERKESO’s national job portal. Posting there also gives you free candidate matching from PERKESO’s pool of jobseekers.
When does it start? Act A1796 lets the Minister bring each part into force on a different date. The benefits started on 1 October 2026. For Section 45F, 2 January 2027 is the widely reported start date, but at the time of writing we could not find the official Gazette commencement notice, and law firms advising on Act A1796 still describe the duty as not yet in force. Check PERKESO’s website before you rely on a date.
Penalties for not reporting a vacancy
Skipping the pre-hiring notification is an offence. The final Act replaced the flat RM10,000 fine in the original Bill with a tiered ceiling:
| Offence | Maximum fine on conviction |
|---|---|
| First | RM1,000 |
| Second | RM3,000 |
| Third and each one after | RM5,000 |
PERKESO has also said it will give employers a transition period of up to two years, focused on education and voluntary compliance, especially for micro and small businesses.
Employer checklist: what to do now
- Update exit and retrenchment letters so departing staff know they can claim EIS within 60 days.
- Brief HR and line managers on the higher benefits, especially the RM1,000 mobility allowance for new hires relocating 100 km or more.
- Be ready to issue a placement confirmation letter when a new hire asks for one to claim EBM.
- Register or refresh your company’s MYFutureJobs employer account.
- Add a “notify PERKESO” step to your requisition approval, before any job ad or headhunter brief goes out.
- Add a “post-hire update within 7 days” step to your onboarding checklist.
- Decide which date counts as “filled” internally (offer acceptance, contract signing or first day) until PERKESO clarifies.
- Keep records of each notification as proof of compliance.
- Watch for the official Gazette commencement notice and PERKESO guidelines on Section 45F.
Sources
- PERKESO — Sistem Insurans Pekerjaan (LINDUNG KERJAYA) benefits page
- PERKESO — EIS FAQ on the amended Act (1 October 2026)
- PERKESO media statement on the Section 45F moratorium (4 December 2025)
- Bernama — Bill tabled for first reading (4 November 2025)
- RTM — Dewan Negara passes the Bill (12 March 2026)
Disclaimer: This article is general information, not legal advice. Benefits are subject to PERKESO’s eligibility rules. Check PERKESO’s latest guidelines before acting.