Malaysia

Govt mandates automatic social security for gig workers under landmark bill

Platform providers required to deduct PERKESO contributions directly, ensuring fair protection for informal workforce

Updated 10 months ago · Published on 19 Nov 2025 2:41PM

Govt mandates automatic social security for gig workers under landmark bill
The legislation seeks to ensure that gig workers, long regarded as part of the informal sector, enjoy social protection comparable to that of traditional employees - November 19, 2025

THE Government has taken a significant step to safeguard its gig economy workforce, with the Dewan Rakyat confirming that platform providers are now legally obligated to deduct Social Security Organisation (Perkeso) contributions automatically from workers’ earnings under the new Gig Workers Bill.

The legislation seeks to ensure that gig workers, long regarded as part of the informal sector, enjoy social protection comparable to that of traditional employees.

Human Resources Minister Steven Sim Chee Keong today emphasised that the Bill imposes a dual responsibility on platform operators: submitting comprehensive gig worker data to Perkeso and integrating automatic contribution deductions into their digital systems.

“This approval demonstrates that gig workers are no longer overlooked, but are recognised as an important workforce in the country's new economy.

“The Bill imposes an obligation on platform providers to submit gig worker information to Perkeso and make automatic contribution deductions from earnings via their digital intermediary systems, allowing integration of Perkeso contributions,” he said in a written reply to the parliament.

Sim added that the automated system will allow Perkeso to collect contributions more efficiently and transparently, without placing undue administrative burdens on platform operators.

“These measures ensure that workers are not burdened with managing contributions themselves, platform providers are not encumbered by additional processes, and Perkeso can collect contributions more transparently and efficiently,” he said.

Perkeso records indicate that as of 19 September, nearly 300,000 gig workers are actively contributing under the Lindung Kendiri self-employed protection scheme.

The minister noted that enforcement powers under the Self-Employment Social Security Act 2017 (Act 789) enable Perkeso to conduct inspections and ensure platform providers adhere fully to the law.

To support the nationwide rollout, the Human Resources Ministry has engaged extensively with both gig workers and agencies, conducting 7,208 outreach sessions.

“These include ongoing programmes to raise awareness, such as the Program Sembang Teh Tarik involving 1,000 gig workers, the Penang Rider Jalan Teruih programme with 1,000 riders, and the Meet & Greet session on 11 October in Kangar, Perlis, which saw participation from 10,000 riders, including gig workers,” Sim said.

A Smart Detection system has been established in collaboration with relevant agencies to monitor platform providers who have yet to comply with registration and contribution obligations.

This move aims to modernise compliance mechanisms while protecting workers’ rights in the rapidly expanding digital economy.

The Gig Workers Bill marks a landmark policy shift in Malaysia, recognising the contributions of gig workers to the national economy and ensuring that social protection extends to all forms of employment in the modern workforce. - November 19, 2025

Spotlight

Malaysia

Haze: MOH issues strict guidelines to ensure public health

Cocaine in shoes: Invited on vacation to Japan, only to end up as drug mules

Malaysia

PDRM awaits Philippine confirmation on alleged politician’s role in 521kg drug seizure

Malaysia

Elderly man dies after being beaten repeatedly

Malaysia

Preliminary report on helicopter crash in Long Lellang released; probe ongoing

Malaysia

‘Am I not the Tuanku?’ Tuanku Muhriz tells off Ismail Lasim (video)

By Alfian Z.M. Tahir

Malaysia

Donating to Najib: ‘One of the most foolish things I have seen’ – UM student

Malaysia

AKPS officer was seeking divorce before alleged killing, says brother

By Alfian Z.M. Tahir

You may be interested

Malaysia

Parents told to check Malaysian Conformity mark on squishy toys before purchase

Malaysia

E-wages dashboard to track compliance of RM2k minimum wage hike from June 2027

Malaysia

KLIA steps up K9 patrols at peak hours after security incidents

Malaysia

Irene Sofiya murder: Accused’s family to take legal action over fake social media posts

Malaysia

Senior political party leader caught for khalwat - (updated)

Malaysia

Government weighs seizing assets of traffic offenders to pay compensation

Malaysia

PDRM awaits Philippine confirmation on alleged politician’s role in 521kg drug seizure

Malaysia

Traffic congestion in Bandar Sunway persists into the afternoon