Workers who lose their jobs owing to retrenchments or company’s bankruptcy will not only receive compensation, but also a help to match with new jobs under the latest Employee Insurance Scheme, according to Pertubuhan Keselamatan Sosial (PERKESO), Malaysia’s Social Security Organization.

PERKESO Chairman, Tan Sri Aseh Che Mat said that it is crucial for Malaysia to increase the country’s productivity, as it aims toward achieving the status of a developed country. Speaking during the agency’s Deepavali celebration, the new initiative will help assist retrenched workers in looking for a replacement jobs by matching them with potential jobs.

If something happen to Malaysia’s currently stable economy that leads to companies closing down their businesses, such schemes would be beneficial for employees in the private sector, said Mr Aseh.

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“Who knows, due to some unforeseen reasons or due to external factor, companies start closing down, employees would be taken care off. Such schemes would be of assistance,” he said.

The new Employee Insurance Scheme is planned to be taken to Parliament this October, in which a contribution of 0.2 percent is borne by the employer and 0.2 percent by the worker. Mr Aseh said the minimum contribution will be only RM1.90. For such small amount, the benefits for workers will be huge, The Sun Daily reports.

Meanwhile, he said the agencies’ efforts to get Uber and Grab drivers to register themselves under the Self Employed Scheme is still not getting much response yet. Regarding to this matter, the agency could actually charge the drivers for not coming forward because this is already a requirement by law. But, he want them to register voluntarily by themselves. Nonetheless, if they fail to register, they can be fined RM10,000, be jailed 2 years or both.

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