A Personal Finance Blog for Malaysian: Why you need Emergency Fund? Can EIS helps?

Wednesday, April 12, 2017

Why you need Emergency Fund? Can EIS helps?

Most American do not have enough emergency cash. Malaysian also same same...

As an example, imagine you're out of work, you need RM5,000 a month to cover your living costs, and all you have is RM500 in a savings account. 

Now let's assume that you weren't fired for cause and are therefore eligible to receive some unemployment benefits while you look for work -- say, RM1,500 a month. Even if you manage to find a new job in just 30 days' time, you'll still be short RM3,000 that first month. And what happens if it takes you three months to find a new job? Suddenly, you're RM10,000 in the hole.

Hey man! Don't forget, there is no such thing as "Unemployment benefits" in Malaysia, yet, so you will be RM14,500 in the hole if it takes you three months to find a new job. However, soon we may have once government pass the new law and force employer and employee to contribute in a new scheme call "Employment Insurance Scheme" (EIS). It is not free, you got to pay for it and our cost of living are on the rise and getting from bad to worse.

It is coming...

Read more here about EIS.

1) NST 

a) 20.03.2017 http://www.nst.com.my/news/2017/03/222766/employees-insurance-scheme-approved-cabinet-hr-minister
b) 29.03.2017 http://www.nst.com.my/news/2017/03/225306/human-resources-ministry-eager-table-bill-employment-insurance-scheme
2) The Star
a) 30.03.2017 http://www.thestar.com.my/business/business-news/2017/03/30/fmm-defer-and-review-employment-insurance-scheme/

No comments:

Post a Comment