Employment insurance system to be implemented from Jan 2018: Riot

KUCHING: The Employment Insurance System (SIP) is expected to be implemented next month after it is passed by the Dewan Negara and consented to by the Yang di-Pertuan Agong, says Human Resources Minister Datuk Seri Richard Riot Jaem.
He said the SIP Bill would be tabled in the Dewan Negara next Monday after the Bill was passed by Parliament.
He added that although SIP was being opposed by employers, the scheme was important to act as a safety net and ensure that retrenched workers were protected.
"If SIP is implemented immediately, private sector workers who have been retrenched will be able to receive temporary financial assistance for up to six months," the minister said in his speech at a Christmas celebration with Socso beneficiaries, here today.
He said under the SIP, employers should contribute 0.2% while employees would also contribute 0.2%, and the payouts to eligible recipients are expected to begin from January 2019.
However, Riot said workers who were retrenched in 2018 were eligible to receive interim benefits in the form of a cash allowance for a maximum of three months.
"The interim benefits are funded by the government under a RM122 million allocation channelled to Socso."
Meanwhile in Kangar, Mentri Besar Datuk Seri Azlan Man said the government was prepared to look into a proposal to consider Socso protection for civil servants serving statutory bodies and the local authorities in the state.
He said the proposal by Congress of Unions of Employees in the Public and Civil Services required thorough study, especially in terms of its financial implications.
"Since this is a good suggestion, we will look at it positively. However, we need to scrutinise it closely and study its full implications to avoid future problems," he told reporters at a National Union of Local Authority Employees conference, here today. — Bernama