Employment Insurance System or better known as EIS, is a financial scheme aimed at helping employees who have lost their job and it is managed by Social Security Organisation (SOCSO). This scheme is intended to act as a "safety net", which means enabling retrenched workers to gain monetary funds that would help them get back on their feet for up to six months.
The function of EIS is similar to Employees Provident Fund (EPF), where the contribution will go into a pooled fund and then the fund will be invested. EIS covers those who have been retrenched for their jobs as well as those who have had to resign because of personal threats to themselves or to their family members. This includes sexual harassment at the workplace.
EIS does not cover employees who have been dismissed for disciplinary reasons (e.g. fraud, persistent punctuality issues) nor those whose contracts have not been extended. Also excluded are employees who have reached retirement age, as well as the spouses of previously insured employees who have passed away.
How to enable EIS for each employee in Talenox?
In the Employee's Profile, just head to Statutory Details and update the following field:
To know the EIS contribution rates for employee and employer, simply click here to know more. 😀