Kuala lumpur: The Malaysian Bar welcomes the tabling of two key amendment bills aimed at strengthening the country’s social protection framework, describing the reforms as an important step toward creating a more responsive and future-ready labour market. Its president, Mohamad Ezri Abdul Wahab, stated that the Employees’ Social Security (Amendment) Bill 2025 and the Employment Insurance System (Amendment) Bill 2025, tabled in the Dewan Rakyat on Oct 30 and Nov 4, respectively, introduce significant improvements that broaden coverage, enhance benefits, and modernise employment services.
According to BERNAMA News Agency, the amendments to the Employment Insurance System Act 2017 (Act 800) include the introduction of a new mobility assistance allowance of RM1,000 to help individuals who secure employment within 12 months of their last job search, and an early re-employment allowance. The Malaysian Bar recognises that this measure will help ease transition costs for jobseekers moving into new roles.
Improvements in benefit rates are also outlined, including increased training allowances from RM10 – RM20 to RM30 per day, higher maximum training fees from RM4,000 to RM7,000, and an enhanced early re-employment allowance from 25 per cent to 50 per cent, all of which provide more meaningful support to workers experiencing employment disruption.
Mohamad Ezri highlighted that the amendments empower the Social Security Organisation (PERKESO) to implement government-directed schemes, training initiatives, and financial assistance designed to enhance workforce readiness. Act 800 has been expanded to allow PERKESO to provide employment services to all persons, including non-contributors to the Employment Insurance Fund, through job brokerage such as job matching, counselling, and career advisory services, as well as the appointment of licensed employment agents to assist with job brokerage.
He acknowledged the potential value of these expanded services but emphasised the need for clarity regarding the governance framework, costs associated with appointing employment agents, and whether PERKESO is institutionally suited to take on a broader employment brokerage role.
Regarding new requirements for employers to notify PERKESO of all job vacancies or new positions before hiring, and to report when positions are filled, Mohamad Ezri noted that, while they aim to strengthen job matching and labour market data, these requirements may impose unnecessary administrative burdens and will require clear guidelines on timing and procedures.
On amendments to the Employees’ Social Security Act 1969, the Malaysian Bar expressed support for the introduction of non-employment injury protection as it expands PERKESO’s coverage to injuries occurring outside the workplace under a new 24/7 protection model. These amendments ensure that PERKESO contributions can be utilised more effectively to protect workers in critical situations.
He mentioned the introduction of three phases of contributions-First, Second, and Third Phases-where employee contribution rates will progressively increase to support non-employment injury protection, while employer contributions remain unchanged across all categories. While this offers greater coverage, clear communication is required to prevent workers from being caught off guard by phased contribution increases.
The reforms are seen as a meaningful step toward improving job security, promoting labour mobility, enhancing benefit adequacy, and ensuring that the social protection framework remains responsive to evolving workforce realities. The Malaysian Bar encourages continued engagement with stakeholders, including workers, employers, and civil society, to ensure that implementation remains clear, transparent, and equitable.