Employment Insurance System Act 2017 · Updated to 1 Sep 2022 · Part V · Benefits
36. Reduced income allowance
Feedback & supportIf an insured person has two or more employments at the same time and has lost one or more of his employments, whether on the same date or not, but has not lost all of the employments—
insured person
“insured person” means an employee who is registered under section 16 or deemed to have been registered under section 17 in respect of whom contributions are or have been paid, or are payable;
the insured person shall be entitled to a reduced income allowance for each loss of employment—
at the rate as specified in the Third Schedule; and
for the period which shall be in accordance with the contributions qualifying conditions in respect of the claim for benefits by the insured person as specified in the Fourth Schedule; and
the insured person shall not be entitled to a job search allowance, a training allowance or an early re-employment allowance.
The reduced income allowance shall be paid lump sum to the insured person.
reduced income allowance
“reduced income allowance” means a lump sum payment to assist an insured person who has two or more employments and has lost one or more of his employments;
If an insured person who has two or more employments at the same time—
Employment Insurance System 33
System
“System” means the Employment Insurance System established under section 4;
has lost one or more of his employments, whether on the same date or not, but has not lost all of the employments;
or
has lost all of the employments on the same date, each claim for benefits in respect of each loss of employment shall be treated as a separate claim for the purpose of determining the contributions qualifying conditions in respect of that insured person.
If an insured person who has two or more employments has lost all of the employments on the same date, he shall be entitled to one job search allowance for one loss of employment and a reduced income allowance for the other loss of employment.
job search allowance
“job search allowance” means a monthly payment for a period of three to six consecutive months to assist an insured person who has lost his employment during the period he is seeking for an employment;
In relation to his entitlement to the job search allowance under subsection (4), the insured person may elect the loss of employment in respect of which the job search allowance shall be paid.
If an insured person who has two or more employments has lost two or more of the employments on the same date, or all of the employments on the same date, the required number of monthly contributions—
required number of monthly contributions
“required number of monthly contributions” means the number of monthly contributions paid in respect of an insured person irrespective of whether the contributions are made in consecutive months or not as specified in the Fourth Schedule;
shall be calculated based on the number of monthly contributions made by the employer in respect of which the loss of employment relates; and
shall not be based on the number of monthly contributions made by any or all of the employers in respect of the insured person.
If an insured person has lost his last employment and prior to that loss of employment he has been employed by two or more employers and has lost all the employments, the contributions made by the two or more employers may be taken into account in calculating the required number of monthly contributions in respect of the first-mentioned loss of employment provided that the contributions
34 Laws of Malaysia made by the two or more employers have not been taken into account for the calculation of any reduced income allowance.