Malaysian Bar welcomes amendments to expand PERKESO coverage, increase benefits and introduce new allowances for jobseekers and workers.
KUALA LUMPUR: The Malaysian Bar has welcomed two key amendment bills aimed at strengthening the country’s social protection framework.
Bar president Mohamad Ezri Abdul Wahab described the reforms as an important step toward creating a more responsive and future-ready labour market.
The Employees’ Social Security (Amendment) Bill 2025 and Employment Insurance System (Amendment) Bill 2025 were tabled in the Dewan Rakyat on October 30 and November 4 respectively.
“These reforms are aligned with the objective of ensuring a more responsive, inclusive and future-ready labour market,” he said in a statement.
Amendments to the Employment Insurance System Act 2017 include introducing a new mobility assistance allowance of RM1,000.
This allowance helps individuals who secure employment within 12 months of their last job search.
The Malaysian Bar recognises this measure will help ease transition costs for jobseekers moving into new roles.
Benefit rates will also improve with training allowances increasing from RM10-RM20 to RM30 per day.
Maximum training fees will rise from RM4,000 to RM7,000 under the amendments.
The early re-employment allowance will be enhanced from 25% to 50% of previous earnings.
These changes provide more meaningful support to workers experiencing employment disruption.
The amendments strengthen the government’s ability to implement active labour market programmes.
They empower PERKESO to carry out government-directed schemes, training initiatives and financial assistance.
Act 800 has been expanded to empower PERKESO to provide employment services to all persons.
This includes non-contributors to the Employment Insurance Fund through job brokerage services.
Services will include job matching, counselling and career advisory support.
PERKESO can also appoint licensed employment agents to assist with job brokerage.
Mohamad Ezri emphasised the need for clarity regarding the governance framework and associated costs.
He questioned whether PERKESO is institutionally suited to take on a broader employment brokerage role.
New requirements mandate employers to notify PERKESO of all job vacancies before hiring.
Employers must also report when positions are filled to strengthen job matching and labour market data.
Mohamad Ezri said this may impose unnecessary administrative burdens without clear guidelines.
Regarding amendments to the Employees’ Social Security Act 1969, the Bar supports non-employment injury protection.
This expands PERKESO’s coverage to injuries occurring outside the workplace under 24/7 protection.
The amendments ensure PERKESO contributions protect workers in critical situations more effectively.
They introduce three phases of contributions where employee rates progressively increase.
Employer contribution rates remain unchanged across all categories under the new structure.
Clear communication is required to prevent workers being caught off guard by phased contribution increases.
“These reforms represent a meaningful step toward improving job security and promoting labour mobility,” said Mohamad Ezri.
They also enhance benefit adequacy and ensure social protection remains responsive to workforce realities.
The Malaysian Bar encourages continued engagement with stakeholders including workers and employers.
This ensures implementation remains clear, transparent and equitable for all parties involved.
