Why did the EIS Bill reduce the original RM10,000 maximum fine?

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The EIS Bill cut the original RM10,000 maximum fine after employer feedback prompted revisions to the penalty levels.

The Employment Insurance System (Amendment) Bill 2025 reduced the maximum fine to RM5,000 from an original proposal of RM10,000. Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said the change was made after Socso gathered feedback from employers during engagement and advocacy sessions across various sectors nationwide.
Socso collected feedback through engagement and advocacy sessions
Socso conducted engagement and advocacy sessions with employers from different sectors nationwide to gather input. That feedback was then taken into account when shaping the revised penalty structure for employers who fail to notify Socso of job vacancies.
The maximum fine dropped from RM10,000 to RM5,000
As a direct outcome of the feedback, the maximum fine was reduced to RM5,000. This adjustment moved away from the earlier RM10,000 maximum that had been proposed for non-notification.
The first-offence penalty was also revised to RM1,000
In addition to lowering the maximum, the penalty for a first offence was revised to RM1,000. The Bill also set out a progressive structure, with higher penalties for subsequent offences, including RM3,000 for a second offence and up to RM5,000 for a third or subsequent offence.
MPs also pressed for a reporting process that does not burden employers
During the debate, MPs urged the government to provide a user-friendly reporting system that is simple and does not place an undue burden on employers. They also highlighted that the reporting data is important for job matching and labour market policies, aligning with the Bill’s emphasis on compliance alongside enforcement.

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Why did the EIS Bill reduce the original RM10,000 maximum fine?

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