RM1,000 Mobility Allowance Aims to Boost Job Matching in Malaysia

Malaysia has rolled out a one‑off RM1,000 Mobility Assistance Allowance for eligible contributors to the Social Security Organisation (PERKESO). The move is aimed at easing the financial burden of relocation and long‑distance travel for workers who secure jobs more than 100 kilometres from their homes.

Government Backing the Initiative

Human Resources Minister Datuk Seri R. Ramanan announced the allowance on Tuesday, stating it would be available from 1 October after amendments to the Employment Insurance System (EIS) Act 2017. The policy is part of a broader effort to strengthen the country’s labour market.

How the Allowance Works

Eligible PERKESO contributors who accept a new job beyond the 100‑kilometre threshold will receive a single RM1,000 payment. The scheme is designed to cover upfront costs such as travel, temporary accommodation and other relocation expenses that can deter workers from taking opportunities outside their immediate area.

Impact on Job Matching

Dr Syed Hussain Syed Husman, Senior Adviser for Government, Media and International Engagement at the Malaysian Employers Federation (MEF), said the allowance would improve geographical mobility. “By reducing the financial barrier to moving, employers can match vacancies with suitable talent from a wider pool,” he explained. “This is especially important in sectors where skilled workers are scarce in certain regions.”

Sector‑Specific Challenges

Manufacturing, logistics and hospitality are among the industries that have reported difficulty in sourcing qualified staff locally. The mobility allowance is expected to help fill these gaps by encouraging workers to move to areas where demand is high.

Enhancements to the Employment Insurance System

Alongside the mobility allowance, the government is raising the Early Re‑employment Allowance from 25 % to 50 % of the remaining unpaid Job Search Allowance. This change is intended to give workers a stronger incentive to return to work quickly.

The daily Training Allowance will also increase from RM10 to RM30, and the maximum training fee covered will rise from RM4,000 to RM7,000. These adjustments aim to make reskilling programmes more affordable and accessible for unemployed workers.

Supporting Reskilling Initiatives

The increased training allowance and expanded fee coverage are part of a larger strategy to upskill the workforce. Employers can partner with training providers to offer subsidised courses, while workers can take advantage of the higher daily stipend to cover living costs during training.

Benefits for Employers

MEF highlighted that employers stand to gain from the new scheme through reduced vacancy‑filling times and better matches between candidates and job requirements. The organisation also promotes employment services and worker‑support programmes that help streamline the hiring process.

Application Process

Eligible workers should submit their claim through the PERKESO online portal, providing proof of employment and distance from their residence. Employers are advised to keep records of job offers and the applicant’s home address to facilitate verification.

Next Steps for Workers and Employers

MEF urges PERKESO to communicate the eligibility criteria, application procedures and payment timelines clearly to both workers and employers. By doing so, the scheme can reach those who would benefit most and ensure a smooth rollout.

For more information on the allowance and the updated EIS provisions, workers and employers are encouraged to consult the PERKESO website and the Malaysian Employers Federation’s resources.