MEF: RM1,000 Socso mobility allowance to improve job matching for workers relocating over 100km

The Malaysian Employers Federation (MEF) has welcomed a one-off RM1,000 Mobility Assistance Allowance for eligible Social Security Organisation (Socso) contributors, as it could improve the matching of workers with job opportunities, especially in locations more than 100 kilometres away. This initiative recognizes the significant upfront costs associated with relocation and extended travel for workers seeking employment in distant areas.

MEF Senior Adviser Datuk Dr Syed Hussain Syed Husman emphasized that improving geographical mobility in the labour market will enable more efficient job matching between employers and suitable workers beyond their immediate areas, particularly in sectors facing difficulties in sourcing skilled workers. However, MEF requested clear communication from Socso regarding eligibility criteria, application procedures, and payment timelines for workers and employers to ensure smooth implementation.

The government announced that the RM1,000 allowance would take effect on October 1, following amendments to the Employment Insurance System (EIS) Act 2017. Additionally, Syed Hussain highlighted other enhancements to the EIS, including raising the Early Re-employment Allowance from 25% to 50% of the remaining unpaid Job Search Allowance, increasing the daily Training Allowance from RM10 to RM30, and expanding the maximum coverage of training fees from RM4,000 to RM7,000.

These changes aim to provide stronger support for unemployed workers seeking reskilling and transitioning into new employment. Employers can also benefit from employment services and worker-support programmes, which will reduce the time taken to fill vacancies and improve the matching of suitable candidates with available jobs.