The Ministry of Human Resources to ensure policy on gig workers to contribute to social security scheme

Bernama, 27 Feb 2023.

The Ministry of Human Resources is taking steps to implement the government’s policy of requiring self-employed individuals, including those in the gig economy, to contribute to the Self-Employed Social Security Scheme (SKSPS). According to Human Resources Minister V. Sivakumar, the lack of a specific policy or legislation to protect the welfare of gig workers is among the challenges faced by the Social Security Organisation (Socso) in ensuring insurance coverage for all sectors.

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Gig workers are not protected by the Work Act 1955, Labour Ordinance (Sabah Chapter 67), and Labour Ordinance (Sarawak Chapter 76), and they do not receive the benefit of minimum wage. In response to a question in the Dewan Rakyat by Azli Yusof (PH-Shah Alam) regarding the government’s commitment to developing a clear policy or Act to defend the fate of economic gig workers, Sivakumar stated that the Ministry is studying the protection of gig workers in specific legislation to protect their welfare, including those who are self-employed.

He noted that 374,906 self-employed individuals had SKSPS protection based on Socso statistics from January to December last year, of whom 315,107 were active p-hailing riders and 59,799 were e-hailing workers. To encourage informal sector workers, including gig economy workers, to register and contribute to Socso, various initiatives and programmes have been implemented, such as Socso appointing a corporate agent.

Source: https://www.nst.com.my/news/nation/2023/02/884009/ministry-ensure-policy-gig-workers-contribute-social-security-scheme