EIS a much-needed protection scheme, MTUC says
19 December 2017 Print page
PETALING JAYA, Dec 17 — The Employee Insurance System (EIS), which is expected to be implemented by January next year, is a much-needed protection scheme, the Malaysian Trade Union Congress (MUTC) said today.
MUTC President Abdul Halim Mansor said the scheme is what their organisation has pushed for since 1997.
“We have been pushing the agenda through three Prime Minister and have fought for employee rights who are retrenched without plausible cause since we were established.
“To date, there are still RM650 million in unpaid dues owed to employees who are retrenched. The system will help reduce these sort of issues and help employees who are let go to cope with their financial commitments while they search for other means of employment,” he said.
However, Halim stressed that the companies must manage their EIS funds well and find safe and legal means to expand it.
“The combined 0.4 per cent contributions are actually adequate. However, those who are entrusted to manage these funds must also look at means of contributing more in safe ways. This fund hopefully could one day help employee more than just as a protection scheme, instead help them with their welfare,” he said.
After the Bill has been passed, the Human Resources Ministry has said employers and employees will begin contributing 0.2 per cent from the worker’s base salary for the scheme, which would ensure salaries for an employee between three and six months should his or her service be terminated.
Source : http://www.themalaymailonline.com/malaysia/article/eis-a-much-needed-protection-scheme-mtuc-says#CVP2SPHsSCaBQS59.99