The government has re-tabled the Employment Insurance Scheme (EIS) Bill 2017 after lowering its proposed monthly contribution rate for employee insurance plans.

The contribution rate has been reduced from 0.5 percent to 0.2 percent.

The bill was tabled by Human Resources Minister Richard Riot Jaem and is slated to be passed in the current Parliament sitting, which will be in session until Nov 30.

The revised contributions, which are based on a fixed rate, will range from 10 sen for workers earning RM30 monthly, to RM39.50 for employees earning RM4,000 and above a month.

The maximum contribution rates each month, which fall under Part IV of the bill, are set at 30 sen for the former and RM59.30 for the latter.

The revised bill provides four schedules of rates of contribution, compared with only three schedules when the bill was first tabled in August.

Contributions to the Employment Insurance Fund are split equally between the employee and the employer.

The minister may revise the rates of contribution every three years and more.

The bill was first tabled on Aug 1, but the cabinet decided to defer it, three days later.

This follows concerns raised by stakeholders over the possibility that only a small number of people would benefit from the fund's potential to collect RM1.4 billion a year from 6.5 million employees.

The bill will provide for decremental compensation (80 percent to 30 percent of the assumed monthly wages) to those who have lost their jobs for up to a maximum of six months.

Besides reduced income allowances, those retrenched are also entitled to job search allowances, early re-employment allowances, training allowances, and training fees.

The system will be managed by the national Social Security Organisation (Socso). The bill is scheduled to come into effect on Jan 1, 2018, while the payouts will begin in 2019.

The bill makes it an offence for employers not to register their employees for insurance plans. A person who contravenes the bill is liable to receive either a maximum two-year jail sentence or RM10,000 fine, or both.

EIS will be administered by Employment Insurance Fund which has been granted the power to invest, subject to the terms and conditions determined by the finance minister.

The Employment Services Officer will have the powers of a police officer to carry out enforcement, inspections and investigations.

A Social Security Appellate Board, which will be granted the powers of a Session Court, will be set up to decide any questions and disputes related to the claim.