Amendments to Employment Insurance System Legislation come into operation on 1 October 2026

The Employment Insurance System (Amendment) Act 2026 (“Amendment Act”) comes into operation on 1 October 2026 except for Section 11 of the Amendment Act which only comes into operation on 2 January 2027.1 Section 11 of the Amendment Act introduces the new Sections 45A to 45H in the principal Act, which is now renamed as the “Employment Insurance System and Employment Services Act 2017”.
 
In response to concerns raised by industry stakeholders on the substantial fine to be imposed on employers who fail to notify the Social Security Organisation (“SOCSO”) of job vacancies or newly created positions within seven days, the revised Section 45F provides a reduced fine as follows: 
  1. For the first offence, a fine not exceeding RM1,000;
  2. For the second offence, a fine of not exceeding RM3,000;
  3. For the third or subsequent offence, a fine of not exceeding RM5,000. 
Our previous article that provides a summary of the salient provisions of the Amendment Act (while it was a Parliamentary Bill) can be accessed here.
 
Pursuant to the Employment Insurance System (Benefit and Re-Employment Placement Programme) (Amendment) Regulations 20262 (“Amendment Regulations”) which also comes into operation on 1 October 2026, the Employment Insurance System (Benefit and Re-Employment Placement Programme) Regulations 20183 have been renamed as the “Employment Insurance System and Employment Services (Benefit and Re-Employment Placement Programme) Regulations 2018”. The principal amendments introduced under the Amendment Regulations are new provisions for submission of claims for mobility assistance allowance and a new form known as “SIPF 1A” for this new category of claim.
 
Comment
 
Employers should take note of the requirement under the law, which takes effect from 2 January 2027, to notify SOCSO of job vacancies or newly created positions within the stipulated timeline as failure to do so will attract fines.
 
 
Alert by Teng Wei Hun (Senior Associate) of the Employment Law Practice of Skrine.
 
 

3 P.U. (A) 354/2018.

This article/alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.