MTUC Sabah, S’wak welcome amendments to social protection laws

KUCHING (Dec 4): The Malaysian Trades Union Congress (MTUC) Sarawak and Sabah lauded the Employment Insurance System (Amendment) Bill 2025 and Employees’ Social Security Bill 2025 as progressive steps towards strengthening Malaysia’s social protection network.

They said the reforms under the Bills ensured fair, inclusive and comprehensive coverage for workers across the country, including those in Sabah and Sarawak.

Both Bills were approved at the Dewan Rakyat in Parliament on Tuesday.

In a joint statement yesterday, MTUC Sarawak chairman Zaidi Nasar and MTUC Sabah chairman Mohd Airy Airin said the enhancements reflected the governments’ commitment to safeguarding workers’ welfare amid evolving economic and employment landscapes.

“The improved benefits under the Employment Insurance System — including the Mobility Assistance Allowance (EBM) of up to RM1,000, the Training Allowance (EL) of RM30 per day, the Training Fee (FL) of RM7,000, and a higher Early Re-employment Allowance (EBSA) rate of 50 per cent of the remaining Job Search Allowance (EMP) — show a clear effort to support workers who lose their jobs.

“The introduction of the Non-Employment Accident Scheme (Lindung 24/7) further closes long-standing protection gaps by recognising risks don’t end at the workplace nor during official working hours. The scheme is especially timely, given that only 40 per cent of workers are currently protected under private insurance.

“These amendments align with the International Labour Organisation’s Decent Work Agenda and ILO Conventions 102 and 187, which call for inclusive and resilient social protection systems,” they said.

They emphasised the amendments were particularly meaningful for workers in Borneo, and the vast distances and high worker mobility in Sabah and Sarawak made the EBM especially relevant, while major economic sectors such as plantations, oil and gas, timber and tourism often involve risks outside normal working hours, making 24/7 protection essential.

They also highlighted the increasing participation of Sabah and Sarawak youths in gig work and digital platforms, stressing the need for flexible and inclusive safety nets.

“These reforms not only strengthen national policies but also recognise the unique realities faced by workers in Borneo,” they said.

They opined that the amendments stand to benefit all stakeholders, including workers gaining stronger security, employers enjoying a more stable labour market, and the government bolstering public confidence through a more resilient social protection system.

They also expressed appreciation to the Human Resources Minister for his leadership in advancing the SIP 2025 amendments and the Lindung 24/7 scheme, saying the reforms position Malaysia as a regional example in prioritising worker welfare.

Zaidi and Airy urged the government to ensure smooth and comprehensive implementation, with clear communication on contribution rates and benefit structures, as well as continuous engagement with unions, employers and workers.