One of the initiatives that the HCD SRI will focus on is the provision of a sound framework for unemployment benefits. This framework will act as a safety net for individuals who are in the process of applying for jobs and as such will provide supportive income to them during this process.
Possibility of an Unemployment Framework for Malaysia
- All Malaysian employees
- Involuntary Unemployed
- Attend training courses
- Min. 12 months in last 24 months
- 50% of reference wage
- Payable for up to 6 months
- Minimum and maximum payment amounts
- Long service employees "grandfathered"
- No-claim rebates
- To be determined after study of a suitable framework*
- Other re-employment services to be borne by the Government
- Managed by SOCSO, MoHR
- Links to Institute of Labour Market Information Analysis (ILMIA), SOCSO, Labour Department (JTK), HRDF, Skills Development Dept (JPK), Manpower Dept (JTM)
*An actual study will be commission by MOHR to commence end 2011, with expected completion by 2012. The framework will be finalised after the study has been completed.
Benefits: Employers and Employees
- Employees: "Grandfathering"of long service employees to ensure they are no worse-off under the new Unemployment Insurance Scheme.
* Based on a case of a worker earning RM500 per month with a 2% inflation on wages.
- No Claims Rebate: For participants who have never made any claims during the entire work-life cycle.
- Employers: Always better off as cumulative unemployment insurance contributions are always below retrenchment payouts under current system.