KUALA LUMPUR, Oct 25 — The National Chamber of Commerce and Industry of Malaysia (NCCIM) accused Putrajaya today of revising the Employment Insurance System (EIS) Bill differently than previously agreed at the consultation stage.
The group also said the withdrawal of the original Bill and the tabling of its replacement were done before the Human Resources Ministry consulted further with stakeholders as previously pledged.
The NCCIM asserted that it had been agreed in discussions between employers, employees and the government that the rates for the EIS would be determined jointly by a Tripartite Council based on “actuarial calculations on risk and premiums”.
While Putrajaya halved the contribution rates under Schedule 1, the NCCIM said the rates for Schedules 2 through 4 were retained despite the lack of consensus.
“The National Chamber of Commerce and Industry of Malaysia (NCCIM) and 51 national level employers’ associations would like to express our deep concern for absence of any consultations with the stakeholders on the revisions before re-submitting the revised EIS Bill,” it said in a statement.
“We request this Bill to be postponed until consultations been conducted and completed among all stakeholders i.e. government, employers and employees, and so ensuring collectively its fair and equitable implementation.”
It also asserted that it was previously agreed that the EIS would only cover workers retrenched without compensation, and not those who opt for voluntary or mutual separations.
Putrajaya withdrew the original EIS Bill on Monday and tabled a revised version yesterday.
The revision halved the proposed contribution rates that will be paid equally by workers and employers.
The EIS seeks to extend welfare coverage for the country’s 6.5 million private workers by compelling employers to contribute additional payment and bar them from making cuts to wages and fixed perks.
It is primarily aimed at helping provide financial assistance to private workers who lost their jobs until they find new employment.
