KUALA LUMPUR, Aug 3 — A Parti Sosialis Malaysia (PSM) leader welcomed the tabling of the Employment Insurance System (EIS) in Parliament, saying the party and some NGOs have fought for over 10 years for unemployment benefits.

PSM workers bureau chief M. Sivaranjani said representatives from the Ministry of Human Resources and the Social Security Organisation (Socso) had assured the Opposition party in a meeting yesterday that the Bill would be passed in the current Parliament meeting so that it can be implemented in January next year.

“Even though we had a lot of issues with this current government, but in this issue, we are with them,” Sivaranjani told Malay Mail Online.

“We're hoping the Bill will get passed on Monday. That will be the biggest victory for the working class in this country,” she added, noting that employers have been pushing very hard for delay of the Bill.

The EIS, which allows retrenched workers to claim a portion of their insured salary for between three and six months of unemployment as well as allowances, was tabled for the first reading in the Dewan Rakyat Tuesday.

Contributions to the Employment Insurance Fund, which will be based on the worker’s salary, are split equally between the employee and the employer. The contributions based on fixed rates range from 20 sen for workers earning RM30 monthly to RM59.30 for employees earning RM4,000 and above a month.

Sivaranjani said PSM had several concerns with the EIS, but stressed that they could be addressed after the Bill is passed.

“One of the biggest things we wanted looked into at a later stage is that companies going bankrupt, they're unable to provide termination/ layoff benefits,” she said.

She also highlighted the lack of coverage for contract workers, pointing out that security guards and cleaners employed by the government, for example, were usually hired on contract.

“We're saying this is not fair because most of the work now is contracted out. So these people should be covered,” said Sivaranjani.

The third concern, she said, was the scheduling of benefit payouts for 2019 despite planned implementation of the EIS in 2018.

“For now Socso, the minute you become an employee, Socso coverage starts immediately. So why must [the EIS] have this [minimum] 12 months’ contribution condition?” Sivaranjani questioned.

She added that Socso, which provides social security protection for workers and has been tasked to administer the EIS, had assured PSM that interim benefits could be considered for workers who lost their jobs in less than 12 months after contributing to the fund.

“But this is not in the Bill,” Sivaranjani said.

Prime Minister Datuk Seri Najib Razak had announced on May 1 that the government has agreed to provide Socso with RM70 million for the payment of financial benefits relating to the EIS from next year.