KUALA LUMPUR (Oct 9): Malaysia has no immediate plan to compel gig economy platforms to make mandatory social security contributions though the government will consider the proposal for future policy improvements.
The government recognises the need to preserve the flexibility and independence that define gig work, which distinguishes gig workers from conventional full-time employees under current labour laws, Human Resources Minister Steven Sim Chee Keong told the Dewan Rakyat on Thursday.
“Many prefer flexibility and autonomy rather than being full-time workers,” he said during the minister’s question time on Thursday. “Therefore, for now, under the new Gig Workers Bill, contributions to Socso’s self-employed protection scheme will still be made voluntarily by the workers themselves.”
Under the Gig Workers Bill passed this year, protection has been strengthened by offering upfront coverage to registered gig workers before any contributions are made to the Social Security Organisation, also known as Socso or its Malay acronym Perkeso.
The bill also introduces a more flexible and affordable payment method through automatic deductions. Currently, gig workers must pay their annual Socso contributions upfront, with four packages ranging from about RM157 to RM593 per year.
Sim was responding to Datuk Awang Hashim (PN–Pendang), who asked whether the government planned to require platform operators, such as ride-hailing and food delivery companies, to share part of the contribution burden.
Awang also urged the government to ensure that large platform operators that profit from the gig economy also shoulder part of the social security responsibility to promote corporate accountability.
In response, Sim said the idea would be studied for future enhancement, though the government’s immediate focus is on implementing the new gig work law to ensure foundational protection.
“This is indeed a good suggestion for future improvement. But at this point, the liability for contribution remains with the workers themselves,” he said.
Earlier, Sim also addressed a question from Datuk Mohd Isam Mohd Isa (BN–Tampin) on plans to expand 24-hour social security protection for all categories of workers — including part-timers, shift workers, and gig workers.
Sim said there are still gaps in the current system as Socso rejected 87% of the 538,000 claims received since 2018 because they were not classified as work-related incidents.
To address the issue, Sim reiterated that the government plans to introduce the Employment Casualty Protection Scheme under the new labour framework. The scheme will provide round-the-clock coverage, including for accidents that occur outside of work hours.
With the new scheme, Socso will bear the medical costs for contributors even when accidents are not work-related, said Sim. “This will not only reduce the financial burden on workers and their families but also ease the strain on the public healthcare system,” he added.
The Edge Malaysia. (2025, October 13). Govt rules out gig firms’ mandatory contributions to Socso, for now. https://theedgemalaysia.com/node/773384
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