PEOPLE.IDEAS.PERFORMANCE

108 Figure 1: Total compensation concept, Adapted from Tan, Tolos, Manab (2014) Discretionary benefits are non-compulsory benefits where companies can choose to offer to their employees. Discretionary benefits fulfil three main objectives.First, as protection programs, the benefit is offered as a protection to employees and family members due to income loss or ill health. Second is the paid time off. Employees receive additional leave days with pay for any purposes. The third is for employees’accommodation and enhancements such as wellness programs and educational assistance programs (Martocchio, 2014). In Malaysia, the retirement benefits are offered under Pension Scheme and Employee Provident Fund (EPF) while disability benefits are offered bythe Social Security Organisation (SOCSO). The Pension Scheme is a defined benefit plan while EPF is a defined contribution plan (Tolos, Wang, Zhang and Shand, 2014). Recently, the government announced unemployment benefits under the Employment InsuranceScheme (EIS). The scheme will benefit around 6.5 million local employees in the private sector ( The Star Online, 2017). This scheme is aimed at employees who have lost their jobs. It will be a social safety net meant to provide financial help and assistance for workers in their job search. An attractive benefit offered by this scheme is that employees will get temporary financial help and will be assisted in looking for a new job through a job- seeking programme. Employees will also be given additional training to upgrade their skills. This new policy is expected to be implemented on Jan 1, 2018 while payment of the benefits will start on Jan 1, 2019. The scheme will be funded through premiums paid by both employees and employers and will be managed by SOCSO. However, some observers expect that the system will require a revamp of the retrenchment benefits currently provided for under the Employment Act, although the government has yet to say anything about this (AB magazine, 2017). The design of an employee benefits program has been greatly influenced by the numerous laws and regulation that the government has imposed.The relevant laws and regulations in Malaysia with regards to employee benefits are: (I) Employment Act 1955; (II) Employees Social Security Act 1969; (III) Employees Provident Fund Act 1991; (IV) Pensions Act 1980.