Kuala lumpur: The implementation of the Employment Insurance System (Amendment) Bill 2025 will allow the Mobility Assistance Allowance to be paid as a lump sum to jobseekers who successfully secure new employment. Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan announced that this new provision under Section 37A is among four key amendments to the Employment Insurance System Act 2017 (Act 800), designed to encourage mobility and enhance the chances for Insured Persons (IP) to find suitable jobs.
According to BERNAMA News Agency, the allowance will be provided to IP who report for duty within 12 months after receiving their final job search allowance or re-employment allowance. One of the eligibility criteria is that the new workplace must be more than 100 kilometres away for the IP to qualify for the mobility allowance. However, this allowance will not be available to those receiving the reduced income allowance, Khairul Firdaus explained while presenting the bill in the Dewan Negara.
Khairul Firdaus further mentioned that the amendments would extend the role of the Social Security Organisation (PERKESO) by renaming the act to the Employment Insurance and Employment Services Act 2017, which aims to facilitate job placement for jobseekers. Additionally, the Cabinet agreed on February 27 to adjust the proposed fines for employers who fail to report job vacancies under Section 45F, to avoid overburdening micro and small enterprises. The revised fines will be not more than RM1,000 for the first offence, RM3,000 for the second offence, and RM5,000 for the third and subsequent offences, compared to the earlier proposal of RM10,000.
In his closing remarks during the debate, Khairul Firdaus clarified that IP who lose their jobs due to misconduct or disciplinary action are not eligible for the benefits. The assessment of whether a termination is linked to disciplinary action is under the jurisdiction of the Labour Department (JTK), the Industrial Relations Department (JPP), and the Industrial Court.
The amendments to Act 800 align with the strategies under the 13th Malaysia Plan (13MP) to enhance workers' well-being by strengthening social protection and addressing the increasingly dynamic labour market. The bill was subsequently passed with a majority voice vote after being debated by 12 senators.