Malaysia

Gig Workers Act to offers protection and upskilling opportunities by end of March

The government will implement the long-awaited Gig Workers Act which will provide legal safeguards, guaranteed payment timelines, and social security coverage for platform-based workers

Updated 9 months ago · Published on 26 Jan 2026 3:02PM

Gig Workers Act to offers protection and upskilling opportunities by end of March
The Act will provide key protections for gig workers, including guaranteed payment within seven days and social security coverage in the event of accidents - January 26, 2026

THE government is set to enforce the Gig Workers Act by the end of March, Human Resources Minister Datuk Seri R. Ramanan confirmed today, signalling a landmark step in regulating platform-based employment and strengthening protections for gig workers across the country.

Speaking to reporters after launching the Kampus Rakan Grab Malaysia (KRG), Ramanan said the legislation would be finalised by the end of March, with supporting structures such as a consultative council, tribunal, and related offices to be announced in due course.

“The Gig Workers Act will be finalised by no later than the end of March. So, that is what I can confirm for now. As for the consultative council, tribunal and all related offices, everything will be put in place, and announcements will be made in due course,” New Straits Times reported him saying

Ramanan outlined that the Act would provide key protections for gig workers, including guaranteed payment within seven days and social security coverage in the event of accidents.

“The Social Security Organisation (Perkeso) also assures that once they become contributors, if anything happens, they are covered, and their loved ones will also not be affected when they are unable to go to work,” he added.

Addressing questions on minimum wage and algorithmic transparency, Ramanan clarified that the government had standardised a minimum wage of RM1,700, but platform owners would retain control over wages and work allocation.

“Of course, a floor price differs because we cannot dictate a single rate across the board. Some platforms are profitable, while others are not. If we force all platforms to adopt one fixed rate, what happens to platforms that are not making profits? For us, we must protect everyone,” he said.

The minister also announced a series of initiatives to support worker development. Grab, Malaysia’s largest gig employer, will provide training and upskilling for 5,000 workers this year.

Additionally, the ministry will offer financing assistance to 5,000 more workers seeking skills enhancement through the Skills Development Fund Corporation (PTPK).

“Following discussions, the ministry will also assist 5,000 workers who wish to upgrade their skills through the Skills Development Fund Corporation. We will provide financing assistance to help them improve their skills and their livelihoods,” Ramanan said.

The launch of Kampus Rakan Grab represents a shift from a service-oriented facility to a comprehensive hub for learning, community engagement, and partner support, with nine nationwide centres located in the Klang Valley, Johor Bahru, Penang, Melaka, Kota Kinabalu, Kuching, Ipoh, Kuantan, and Seremban.

Ramanan welcomed Grab’s decision to increase its contribution to Perkeso coverage, raising its support for all e-hailing riders from 10 per cent to 15 per cent, describing the move as “substantial” and a key step in ensuring the welfare of gig workers.

He stressed that stakeholder engagement will continue even after the Act comes into force.

“Even after March 30, we will continue because there are certain matters that can only be seen after the Act comes into force. We will do this on an ongoing basis — we will have to see what happens and gather feedback after implementation,” he said.

The Gig Workers Act is widely seen as a critical framework to formalise protections for Malaysia’s growing gig economy, balancing worker welfare with platform sustainability and signalling the government’s commitment to modernising labour regulations. - January 26, 2026

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