Navigating Job Loss in Malaysia:
Your Step-by-Step
Retrenchment Support Guide
Retrenchment in Malaysia has been climbing. This page is a practical 30-day guide for what to do next, from claiming your SOCSO EIS to landing your next job faster.
Sign up through this page and get more visibility from employers so you get hired faster.Your first 72 hours
Before you do anything else, do these. A few of them have hard deadlines you don't want to miss.
File your SOCSO EIS claim 60-DAY DEADLINE: Apply via Perkeso
EIS can pay up to 6 months of income replacement. Payments start at 80% of your salary for the first two months, reduce to 50% for the next 2-3 months and drop to 30% for the final months.
Register on the MYFutureJobs Portal
This step is mandatory for EIS claims. After applying, MYFutureJobs will match you with suitable vacancies. IPs can also access skills training during unemployment or after re-employment under the EIS program.
Review Your Retrenchment Package
Check your retrenchment letter for your exact termination date, severance payout and payment for unused annual leave. If the terms seem unfair, seek advice from the JTKSM before signing away your rights.
Get Your Termination Letter in Writing
Ask HR for a clear, written letter stating the exact reason for termination (e.g., retrenchment, VSS, MSS) and request a formal testimonial or letter of recommendation from your manager or HR.
Update your CV & Create a Hiredly Profile
Use HiResume.my to build an ATS-friendly CV quickly. Then, create your Hiredly profile to start searching for active jobs immediately.
Want this as a checklist you can save?
We'll email you a free PDF: Hiredly's Retrenchment Support Guide — your 30-day checklist. No spam, just this, job recommendations and the occasional job tip.
Stay financially stable
The shock of losing a job is financial before it's anything else. These are the levers most Malaysians don't know they can pull.
EIS benefit, explained simply
Under PERKESO’s Employment Insurance System (EIS), if you earned RM5,000/month, your first month of EIS pays roughly RM4,000 (80%), with the amount gradually stepping down in the following months. It’s the safety net you need while you focus on landing your next big role.
KWSP (EPF) Financial Support
For retrenched employees, KWSP (EPF) allows immediate access to retirement savings via the Akaun Fleksibel (Account 3) for quick cash on hand, or other pre-retirement withdrawals, and exempts retrenchment benefits from statutory contributions.
Key EPF Support & Provisions for Retrenchment (2026):
Akaun Fleksibel (Account 3) Withdrawal: As of April 2024, members under 55 can withdraw savings from this account at any time for financial needs, with a minimum withdrawal of RM50.
Other levers worth knowing about
Postpone your PTPTN payments. If you have a study loan, you can apply to delay your monthly installments while you’re out of work. PTPTN's portal handles these applications online.
Contact Creditors Immediately. Do not wait for missed payments. Contact your bank and credit card issuers to explain your retrenchment. Many financial institutions offer temporary repayment assistance
AKPK — free debt counselling. Agensi Kaunseling dan Pengurusan Kredit is a Bank Negara-backed service that helps restructure loans and credit card debt. It's completely free, and one of the most underused resources in Malaysia.
Fast-Track Your Job Search: Three Ways Hiredly Can Help
Job hunting after a layoff is hard enough. Let us help you find your next role.
Get seen by employers first
Create your Hiredly profile today to discover career opportunities tailored to your expertise. Take the next step and kickstart your job search seamlessly with us.
A CV that gets past filters, built in minutes
Need a resume refresh? HiResume.my, Hiredly’s dedicated AI CV builder, creates a recruiter-ready CV formatted for the ATS systems Malaysian employers actually use. We use our 11 years of local data to help you craft a resume that lands interviews, so you can be applying within the hour.
Handpicked roles based on your new resume
Once your profile and CV are ready, our smart recommendation system on Hiredly takes over. You will receive personalised job matches based on your resume, paving the way for a seamless, hassle-free connection with actively hiring companies.
Services worth knowing about
Watch out for scams targeting job seekers
Laid-off Malaysians are a prime target. A few patterns to recognise immediately.
WhatsApp "part-time RM300/day" offers. Usually MLM recruitment or money-laundering mule schemes. Legitimate employers don't cold-message you on WhatsApp.
"Training fees" or "equipment deposits." No legitimate employer asks you to pay to start a job. Walk away.
Fake recruiters asking for bank details upfront. Banking info is for payroll after you're hired — not for "verification" during interviews.
Telegram groups promising daily high income. If it sounds too good to be true, it is.
Not sure if it's really us?
Every job on Hiredly is verified from a registered Malaysian employer.
If you receive a suspicious message claiming to be from Hiredly, reach out to our team directly to verify:
hello@hiredly.com
+603-2771 0141 (Office)
+6011-5446 0461 (Customer Service)
Examples below show how scammers can impersonate Hiredly. If the message asks for personal details and payments, treat it as a red flag 🚩
You can also check our Instagram highlights for reported scammers and impersonation examples: Instagram highlights.
Interview & negotiation prep
How you talk about the layoff matters more than whether it happened.
Explaining a layoff without apologising for it
Keep it brief, factual, and forward-looking. "The company restructured and my role was part of the reduction. I'm focused on finding a team where I can contribute [specific skill or outcome]." No blame, no over-explanation, no shame. Interviewers have seen hundreds of retrenchments — it's not a mark against you.
Know your worth before you negotiate
Don't guess your market rate. Our annual Hiredly Salary Report benchmarks roles across Malaysian industries — useful whether you're interviewing now or planning ahead.
More on salary and negotiating
We’ve curated some of our best video guides right here to help you nail your next interview and negotiate the salary you deserve. You can watch them directly on this page, or head over to @hellomentorwithderektoh on TikTok or our YouTube playlist for more career insights.
FAQ
Typically 2–4 weeks from a complete application. Incomplete documents are the most common cause of delay — double-check your termination letter clearly states the reason before submitting.
Yes, you can. Whether it’s Retrenchment, VSS, or MSS, these are all recognized as a loss of employment. If your contract ended under any of these schemes, you’re eligible for EIS benefits. We recommend a quick check with PERKESO to confirm the specifics of your case.
Depends on your runway. With EIS covering up to 6 months, most people can afford to be selective for the first 2–3 months. If you're approaching month 4 without offers, widen the search — an interim role that pays the bills is better than burning savings.
Short gaps (under 6 months) barely register with Malaysian employers, especially in the current climate. Anything longer is worth addressing briefly in your cover letter — upskilling courses, freelance work, or caregiving responsibilities all count as legitimate reasons.
No. EIS is currently only available to Malaysian citizens and permanent residents who have contributed to the scheme. Foreign workers who've lost their jobs should speak to their employer about final entitlements and, if holding a work pass, their pass status.
EIS benefits are generally not subject to income tax. Retrenchment benefits from your employer may have partial tax exemptions depending on years of service — check with LHDN or a tax adviser for your specific situation.
You didn't choose this. You get to choose what happens next.
Start with one step — create your Hiredly profile.