‘Allocate RM50m annually instead of EIS’

PETALING JAYA: Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) secretary-general Datuk Low Kian Chuan has suggested that instead of implementing the Employment Insurance Scheme (EIS), the government should allocate RM50 million annually to help retrenched workers.
This, he said, will prevent employers and employees from being made to shoulder the extra burden and the relevant authority (Social Security Organisation or Socso) is not weighed down with additional responsibility to manage the EIS fund, China Press reported today.
Based on statistics, retrenchment benefits for laid-off workers amounted to RM20-30 million a year but the money to be collected by the government under the EIS is expected to amount to RM100 million a year, he said when asked by the daily to comment on the EIS.
He said although the EIS is meant to help retrenched employees who do not get retrenchment benefits, it would appear unfair to make the whole workforce of 6.5 million people in the private sector and their employers to pay for the benefits of this relatively small percentage of laid-off workers. Low also pointed out that too much power is vested with the human resources minister under the EIS, including the power to adjust the rate of contribution by both the employers and employees.
It has been reported that under the scheme, both employers and employees are required to pay 0.25% of the employee’s contribution into a common pool under the Socso.
The EIS Bill, which was tabled in the Parliament on Tuesday, requires all private sector employees and companies, even with only one employee, to register for EIS.
Source : http://www.thesundaily.my/news/2017/08/04/%E2%80%98allocate-rm50m-annually-instead-eis%E2%80%99
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