The Employment Insurance System Act 2017 came into effect on 1 January 2018. Under this new legislation, an employment insurance scheme (“EIS”) will be implemented whereby employers and employees have to contribute to the EIS. The EIS will be administered by Social Security Organisation (SOCSO) and aims to provide temporary financial assistance for retrenched workers. (Read our previous articles about EIS here)
Many employers are still learning about their obligations under the EIS, in particular how to make the EIS contributions – especially since we are approaching month end (payroll time!).SOCSO’s website has provided some information on this and we have summarised it below.
How to make EIS payments?
- Employers and employees have to be registered under the EIS with SOCSO. The relevant forms can be downloaded from SOCSO’s website. There are different forms depending on whether you are already registered with SOCSO before this. New employers who have not registered with SOCSO before should use Form SIP1 and SIP2. Employers who have registered with SOCSO before can use Form SIP1A and SIP2A. Registration is currently done manually by lodging it at the SOCSO office. From February 2018 onwards, it should be possible to register online.
- Download the Excel Sheet (Lampiran 1) from SOCSO’s website and fill up the information
- E-mail the Excel Sheet (Lampiran 1) to carumanSIP@perkeso.gov.my using the following subject line: [Caruman SIP]: {Employer Code} – {Month/Year of Contribution}. Example: [Caruman SIP] : A12345678 – 02/2018
- Payment has to be made by way of cheque or money order in favour of “PERTUBUHAN KESELAMATAN SOSIAL” or “PERKESO”. Include your name, employer code (kod majkan) and the month/year of contribution together with your telephone number on the reverse of the cheque or money order.
- Payment has to be made at a SOCSO office. Print a copy of the e-mail referred to in paragraph 3 together with a copy of the Excel Sheet (Lampiran 1). Online payments are currently not accepted. However, we understand that from February 2018, payments may be made through SOCSO’s online “Assist” portal.
- Upon payment, SOCSO will issue an acknowledgement of receipt of payment.
Good luck, everybody!
***
Have a query? Contact us.
