Socso observes spike in jobless claims but says still manageable

The Social Security Organisation (Socso) said it has observed a spike in jobless claims under the Employment Insurance Scheme (EIS) but said the situation remains under control.

"Even though there is a spike in the EIS benefits claims, the number of workers losing their jobs is still manageable, where the loss of employment figures is still within the range of below 6,000 per month.

"Nevertheless, we are monitoring the situation closely on the daily basis and advising the government of any unexpected increases," it said in a statement today.

The EIS is a fund in which all workers contribute 0.2 percent of their salary of up RM7.90 a month. Employers must also provide a matching sum.

Employees who lose their job can claim from the fund where they will receive assistance for up to six months.

They will get 80 percent of their last drawn salary capped at RM4,000, translating to a maximum of RM3,200.

Subsequently, they will receive 50 percent in the second month, 40 percent in the third and fourth month and 30 percent in the fifth and sixth month.

Amid the global economic downturn brought about by the Covid-19 pandemic, the government has also expanded the benefit for those being put on no-pay leave under the Employment Retention Programme (ERP).

The government has also introduced a Wage Subsidy Programme (WSP) of between RM600 to RM1,200 for employees earning RM4,000 or less to encourage employers to keep them.

"These initiatives are aimed at stabilising employment, avoiding massive retrenchment, safeguarding jobs and hence, enabling workers, especially in the B40 Group to put food on the table during this difficult time.

"As of April 22, EIS recorded a total of 205,342 applications from employers for WSP that stabilised the employment of 1.67 million workers. 

"At the same time, over 25,411 employers applied for ERP, covering 208,907 workers who are on unpaid leave," Socso said.

It added that there is also a need to review existing laws to expand the scope of the EIS to protect vulnerable segments of the society, such as the self-employed in the informal sector.

It said the WSP will cover 4.8 million workers between three to six months with an allocation of RM13.8 billion.

Socso said the priority now is to break the chain of the Covid-19 infection.

"As for post-Covid-19 initiatives, all agencies under the Human Resources Ministry have been on alert and ready with various programmes and strategies to address mid-term and long-term unemployment issues particularly on helping the affected workers and the unemployed in general to be gainfully employed.

"The ministry is also in the process of reforming and strengthening Malaysian public employment services, introducing various active labour market policies and programmes, promoting jobs creation, as well as ensuring our workforce is equipped with current skills and competencies to meet the rapid changes in the labour market landscape and the future world of work," it said.

As of noon yesterday, Malaysia recorded 5,691 Covid-19 cases with 96 deaths.

However, 3,663 or 64.4 percent of all patients have since recovered while 1,932 are still in treatment.

Globally, the coronavirus has infected 2.83 million people and claimed 197,306 lives. - Mkini