Akta Sistem Insurans Pekerjaan 2017
Applies to: Federal Act — see s 2 (Application) · Official text ↗
- Applies to all industries with one or more employees (s 2(1)).
- Excludes persons described in the First Schedule (s 2(2)).
- Requires employers to register and insure all employees (s 16(1)).
- Defines terms such as 'contribution', 'required number of monthly contributions' and 'early re-employment allowance' (s 3)
- Mandates contributions from both employers and employees (s 18(1)).
- Sets out conditions for loss of employment and claims for benefits (ss 27–30).
- Establishes the Appellate Board to resolve disputes and appeals (s 59(1)).
What this law is
The Employment Insurance System Act 2017 (Akta Sistem Insurans Pekerjaan 2017) is numbered Act 800 in the Laws of Malaysia. Where it applies is set out in section 2 (Application).
Its long title, as printed in the official text: An Act to provide for the Employment Insurance System administered by the Social Security Organization to provide certain benefits and a re-employment placement programme for insured persons in the event of loss of employment which will promote active labour market policies, and for matters connected therewith.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–3)
- Part II — Administration of employment insurance system (ss 4–7)
- Part III — Committees (ss 8–12)
- Part IV — Registration and contributions (ss 13–26)
- Part V — Benefits (ss 27–43)
- Part VI — Re-employment placement programme (ss 44–45)
- Part VII — Financial provisions (ss 46–58)
- Part VIII — Social security appellate board (ss 59–66)
- Part IX — Employment services officer, enforcement and investigation (ss 67–77)
- Part X — General (ss 78–90)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Employers must register and insure new employees | within thirty days from the date the employees enter into employment | s 16(1)(b) |
| Insured person must submit application for claim for benefits | within sixty days from the date he considers that he has lost his employment | s 28 |
| Insured person must notify Organization of accepted job offer | within seven days from the date of acceptance of the offer | s 34(5) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Contravening the requirement to register and insure employees | fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both | s 16(5) |
| Being in employment during the job search allowance period or failing to notify the Organization of a job offer | fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both | s 34(6) |
| Committing or conspiring to commit fraud or forgery in connection with contributions or benefit claims | fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both | s 72 |
Laws cited on this page
| Act 800 | Employment Insurance System Act 2017 Akta Sistem Insurans Pekerjaan 2017 | PDF · PDF (BM) · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 2 | The Act applies to all industries with at least one employee, but does not apply to persons listed in the First Schedule. |
| s 3 | Defines terms used in the Act, such as 'contribution' and the 'early re-employment allowance' — a lump-sum incentive for accepting an offer of employment and starting work. |
| s 16 | Requires employers to register and insure all employees, with a deemed registration date if contributions are paid late, and sets a penalty for non-compliance. |
| s 18 | States that contributions are payable by both the employer and the employee to the Organization at rates specified in the Second Schedule. |
| s 27 | Requires claims for benefits to be submitted to the Organization in the prescribed manner with supporting evidence. |
| s 28 | Insured persons must submit a claim for benefits within sixty days from the date they consider they have lost their employment. |
| s 30 | Defines 'loss of employment' as termination or voiding of the contract for reasons other than voluntary resignation, expiry, mutual consent without terms, completion of work, retirement, or misconduct. |
| s 34 | Entitles approved claimants to a job search allowance, prohibits employment during this period, and requires notification to the Organization within seven days if a job offer is accepted. |
| s 41 | Allows the Organization to suspend benefits if there is reasonable ground to believe in false claims, employment during the allowance period, or contravention of the Act, subject to an inquiry. |
| s 59 | Grants the Appellate Board power to decide disputes regarding employee status, contributions, loss of employment, benefit entitlements, and other matters under the Act. |
| s 60 | Proceedings before the Appellate Board must be instituted in the area where the insured person was working, with the Chairman able to transfer matters to another area. |
| s 72 | Makes fraud or forgery in connection with contributions or benefit claims an offence punishable by fine or imprisonment. |
Worked examples
Facts. Ahmad hires a new worker, Siti, but forgets to register her with the Social Security Organization for two months.
The law. Employers must register employees within thirty days of them entering employment (s 16(1)(b)). Failure to do so is an offence (s 16(5)).
Outcome. Ahmad commits an offence and is liable to a fine not exceeding ten thousand ringgit or imprisonment for up to two years (s 16(5)).
Facts. Rina resigns from her job because she wants to travel. She then applies for the job search allowance.
The law. Loss of employment does not occur if the contract is terminated by voluntary resignation (s 30(1)(a)).
Outcome. Rina is not entitled to benefits because her resignation is considered voluntary and not a loss of employment under the Act (s 30(1)).
Facts. Kamal is receiving the job search allowance. He accepts a new job offer on Monday but does not tell the Organization until the following Friday.
The law. An insured person must notify the Organization within seven days from the date of acceptance of a job offer (s 34(5)).
Outcome. Kamal has complied with the law as he notified the Organization within the seven-day limit (s 34(5)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Who is covered by this Act?
The Act applies to all industries that have one or more employees (s 2(1)). It does not apply to persons described in the First Schedule (s 2(2)).
What counts as 'loss of employment'?
Loss of employment occurs if the contract is terminated or becomes void for reasons other than voluntary resignation, expiry of contract, mutual consent without terms, completion of work, retirement, or misconduct (s 30(1)).
How long do I have to claim benefits after losing my job?
You must submit an application for claim for benefits within sixty days from the date you consider that you have lost your employment (s 28).
Can I work while receiving the job search allowance?
No, an insured person shall not be in any employment during the period of receiving the job search allowance (s 34(4)). If you accept a job offer, you must notify the Organization within seven days (s 34(5)).
Who decides if I am entitled to benefits?
The Organization decides on claims, but the Appellate Board has the power to decide disputes and appeals regarding entitlement to benefits (s 59(1)(h)).
What happens if I provide false information in my claim?
The Organization may suspend your benefits if there is reasonable ground to believe you furnished false particulars (s 41(1)(a)). Committing fraud or forgery in connection with claims is an offence punishable by fine or imprisonment (s 72).
All questions & answers → · Ask your own →
Sources
Related
Employment law: your rights at workEmployees' Social Security Act 1969Employment Act 1955Industrial Relations Act 1967