Malaysia’s social protection framework is set for further strengthening following the tabling of the Employment Insurance System (Amendment) Bill 2025 for its First Reading in the Dewan Rakyat today by Human Resources Minister Steven Sim Chee Keong.
The bill, tabled under the purview of the Social Security Organisation (SOCSO), seeks to review and enhance the Employment Insurance System Act 2017 [Act 800] to ensure it remains dynamic and responsive to the evolving needs of the labour market.
Sim said the amendments aim to improve benefits for insured persons who have lost their jobs, encourage labour mobility, and strengthen governance in re-employment programmes.
Key improvements proposed under the bill include an increase in the Early Re-employment Allowance (EBSA) rate from 25 per cent to 50 per cent of the remaining Job Search Allowance (EMP), an increase in the Training Allowance (EL) to RM30 per day, and a rise in the Training Fee (FL) to RM7,000.
In addition, a new Mobility Assistance Allowance (EBM) will be introduced, offering RM1,000 to insured persons who secure employment more than 100 kilometres from their place of residence.
“This amendment reflects the government’s commitment to strengthening the principles of Malaysia MADANI centred on ‘Well-being, Creativity and Compassion’ to ensure that the nation’s social protection system remains inclusive, sustainable and resilient,” Sim said in a statement today.
He added that the move will not only safeguard workers affected by job loss but also help them return to the labour market more quickly and effectively.
The bill is scheduled for its Second and Third Readings during the December 2025 Parliamentary session, underscoring the government’s continued commitment to workers’ welfare and enhancing the competitiveness of Malaysia’s workforce.
-HR HUB
