How many gig workers are currently estimated to be in the sector?

Question

Accepted Answer

The Gig Workers Act 2025 Extends Protections to Over 1.2 Million Individuals

The recently enforced Gig Workers Act 2025 (Act 872), effective March 31, aims to safeguard the social security, welfare, and dignity of gig workers. This legislation is designed to extend protections comparable to those afforded to formal employees to a significant segment of the workforce.

The Act is projected to benefit more than 1.2 million individuals currently engaged in the gig economy sector. This substantial number underscores the importance of the new legal framework in providing a safety net for a growing portion of the Malaysian labour force.
Integration Period for Platform Providers

Gig economy platform providers have been granted a grace period of three to six months to integrate their systems with the Social Security Organisation (Perkeso). This transitional phase is intended to allow platform operators sufficient time to adapt to the new legislative requirements without immediate punitive measures.
Pre-Legislation Engagement and Consultation

Prior to the tabling and passage of the Act, the Human Resources Ministry undertook extensive preparatory work. This included conducting 37 engagement sessions that involved approximately 3,873 participants. These sessions engaged a diverse group, including government agencies, trade unions, employer federations, associations, and platform providers, ensuring broad consultation on the implementation of the new law.
Shift to Mandatory Social Security Contributions

A key component of the Gig Workers Act is the introduction of an integrated 1.25 per cent contribution system. This new system mandates coverage for injury and occupational diseases, marking a significant shift from the previous voluntary Self-Employed Social Security Scheme (SKSPS), also known as Lindung Kendiri, which required individual enrolment.

Reading history

Hide →

This history is cleared when the page is closed.

How many gig workers are currently estimated to be in the sector?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends