Malaysia retables employment insurance bill with progressive penalties, reducing fines for first-time employer offences.
KUALA LUMPUR: The Employment Insurance System (Amendment) Bill 2025 was retabled in the Dewan Rakyat today to consider changes made by the Dewan Negara to the proposed progressive penalty structure.
Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said the motion was tabled after taking into account concerns and feedback from the micro, small and medium enterprises (MSME) community.
He said the Bill, passed by the Dewan Rakyat in December last year, proposed a maximum fine of RM10,000 for employers who fail to notify job vacancies as required under Section 45F of the Employment Insurance System Act 2017 (Act 800).
However, he said the penalty was considered too high for a first-time administrative offence and could impose a significant financial burden on employers.
“The Cabinet agreed on Feb 27 to amend the Bill by introducing a more progressive penalty structure based on the frequency of the offence committed by the employer.
“Following that, the Dewan Negara passed the Bill with amendments to Clause 11 involving Subsection 45F(4) on March 12,” he said when tabling the motion.
Under the revised penalty structure approved by the Dewan Negara, employers may be fined up to RM1,000 for a first offence, RM3,000 for a second offence and up to RM5,000 for a third or subsequent offence.
The penalty applies to employers who fail to notify the Social Security Organisation (PERKESO) in writing of job vacancies or newly created positions before recruitment begins.
Khairul Firdaus said the balanced approach would encourage voluntary compliance without placing an undue burden on the business community.
At the same time, he assured the House that the technical amendment would not affect the Bill’s original objective of strengthening labour market reporting.
“The amendment does not alter the original intent of the provision, which is to improve the effectiveness of employment services and ensure that more accurate and comprehensive labour market information is made available,” he said.
