The EIS bill benefits gov't more than workers

COMMENT | It is reported that Parliament has approved the EIS Bill 2017 and is now awaiting the senators’ endorsement. Human Resources Minister Richard Riot Jaem announced that Socso will start collecting contributions from January 2018.

As such, both employers and 6 million workers will contribute about RM72 million every month enabling Socso to amass more than RM800 million in the first 12 months.

No unemployment relief for 12 months

Unfortunately, the Bill imposes a twelve months waiting period, thus depriving payment of unemployment relief to close to 50,000 employees who may lose their jobs in 2018.

The government’s reasoning that the fund must be allowed to accumulate in order to enable Socso to pay out is not valid. The cost of paying out 80 percent of a month’s salary to four thousand retrenched workers will cost RM9.6 million whereas monthly collection will be more than RM72 million.

Responding to employers’ objections, Socso has repeatedly stressed that EIS is based on the principle of solidarity. However, by imposing a twelve-month waiting period the government has blatantly violated the concept of solidarity...