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There have also been amendments to the Employment Insurance System Act 2017, which covers job search allowance and early re-employment allowance.
Malaysia's Dewan Rakyat has passed several amendments to the Workers' Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
As cited in the New Straits Times, taking into account the rising cost of living, inflation rates, and the current poverty line income, the amendments to the bills will increase the maximum insurability salary amount per employee from RM5,000 to RM6,000 per month. It will also include changes to Act 800, which covers job search allowance and early re-employment allowance.
Both amendments were unanimously passed by a voice vote from all members of parliament in the house.
As further cited in the news report, Minister of Human Resources Steven Sim has affirmed that this increase in the maximum insurability salary amount would improve the protection of benefits under Act 4, such as temporary disability benefits, permanent disability benefits, invalidity pension, and survivors' pension.
According to the Ministry of Human Resources, the increase in benefit payments is estimated to exceed 20%, and to benefit 1.45mn workers and their dependents.
Members of Parliament who debated both bills expressed their approval of this maximum wage increase and also discussed matters related to strengthening enforcement against unscrupulous employers and the cost implications for employers, it was added.
Minister Sim also highlighted that this maximum wage increase is one of the government's efforts to strengthen the social protection network and drive labour market reforms in the country.
Lead image / Ministry of Human Resources Facebook
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