MTUC claims EIS funds not enough to protect workers in Covid-19 crisis

CORONAVIRUS | The Malaysian Trade Unions Congress is claiming that the Employment Insurance Scheme (EIS) will not have enough funds to cover claims made by eligible workers during the Covid-19 crisis.

MTUC president Abdul Halim Mansor told Malaysiakini it would be unfeasible for all eligible workers to file claims under the fund as its total contributions currently amount to less than RM2 billion.

He said the amount was in contrast to over RM3 billion estimated ro be needed to cover claims by six million workers under the recently announced Employment Retention Programme (ERP).

"The EIS Act provides for 0.2 percent of the employee's contributions and 0.2 percent employer's contributions, with a maximum claim of RM4,000.

"If six million eligible workers are paid RM600, the total amount would be RM3.6 billion," Abdul Halim said.

"The EIS collective deposits is less than RM2 billion. This (RM3.6 billion) is just claims for the first month, and so the EIS can go bankrupt," he added.

Other benefits claimable under the EIS include a job search allowance paid to workers who lost their primary source of income as a monthly allowance for a minimum of three months and a maximum of six months.

Earlier this month, Human Resources Minister M Saravanan (above) said in a statement that 6.9 million workers would be protected in the event of job loss due to Covid-19.

According to the statement, the Social Security Organisation (Socso) will offer all eligible workers and employers temporary monthly assistance of RM600 for a maximum period of six months under the ERP.

The ERP is a financial aid offered to workers who have been put on no-pay leave due to economic pressures during the movement control order period.

Abdul Halim was responding to former union leader Abdullah Sani Abdul Hamid who on Tuesday had raised objections to the government's move to allow workers to withdraw savings from their EPF Account 2.

Rather than withdraw their savings, Abdullah had urged workers to instead claim for employment insurance benefits from Socso.

Contacted for comments, Socso, in response, merely referred to Saravanan's previous statements.

Malaysiakini has contacted Saravanan for comments on the claims made by Abdul Halim. - Mkini