KUALA LUMPUR: Budget 2027 includes measures to support about 600,000 gig workers in Malaysia, including e-hailing drivers and p-hailing delivery riders.
Although the Gig Consultative Council is still negotiating minimum income rates, income formulas and minimum social protection standards for gig workers – with the outcome expected to be finalised early next year – the government and Grab have agreed to jointly fund a RM160 million package from 2027.
The package will cover higher minimum income rates, assistance with vehicle maintenance and insurance costs, and contributions to the Social Security Organisation (Socso).
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the measures when tabling Budget 2027 in Parliament this afternoon.
“Under the initiative, e-hailing drivers at the median income level are expected to see their net income increase by up to RM227 per month, while p-hailing delivery riders could receive an increase of up to RM100 per month,” he said.
“The government will also provide a 35 per cent Socso matching contribution incentive for e-hailing and p-hailing workers. This will increase to 50 per cent if the platform company also covers the cost of workers’ contributions.”
In addition, a 70 per cent Socso matching contribution incentive will be offered to more than 200,000 self-employed individuals across 17 sectors in which social security coverage is not mandatory.
Tax relief for Socso contributions will be expanded to cover mandatory contributions under the Self-Protection Scheme (Skim Lindung Kendiri). An additional tax relief of up to RM150 will also be available for voluntary contributions to the 24-Hour Protection Scheme (Skim Lindung 24 Jam) and the Self-Protection Scheme.
To encourage retirement savings, e-hailing and p-hailing drivers will be eligible for an Employees Provident Fund (EPF) matching contribution incentive of up to RM600 a year, subject to a lifetime limit of RM6,000.
Separately, Bank Simpanan Nasional (BSN) and Agrobank will provide RM270 million in financing for gig workers seeking to start a business or purchase their first home.
The government will also introduce comprehensive regulations for the p-hailing sector under the Land Public Transport Agency and the Commercial Vehicle Licensing Board.
