KUALA LUMPUR, May 24 — The Pakatan Harapan government will not scrap the Employees Insurance Scheme (EIS) introduced by the previous Barisan Nasional (BN), new Human Resources Minister M. Kulasegaran said today.
Some MPs from the four-party coalition had opposed the EIS last term, accusing the BN government then of wanting to use the retrenchment fund to divert money into crony projects.
The Ipoh Barat MP said there are no plans to review the fund at the moment.
“It will stay for now,” he told reporters after holding his maiden visit to the Industrial Courts here as a minister.
Socso has dispensed close to RM3 million to retrenched workers through the EIS, according to the agency. The scheme took effect in January.
Socso has collected RM19,922,407 as of January after some 240,077 employers joined the scheme, according to several news reports.
The previous administration had allocated RM122 million just to put the system in place.
Trade unions had first proposed the retrenchment fund in 1997 but was only given serious consideration by the government two years ago.
Workers and employers are required to contribute to the scheme at a rate of 0.2 per cent.