PETALING JAYA: The Malaysian Industrial, Commercial and Service Employers Association (Micsea) has called on the government to set a clear policy framework and run pilot projects before expanding the Employment Insurance System (EIS) to gig and platform-based workers.
The association said the plan, announced by human resources minister Steven Sim in the Dewan Rakyat on Oct 4, must begin with a proper definition of who qualifies as a gig worker, independent contractor, or employee, as each carries different legal implications and obligations.
“Before extending the EIS to new labour categories, the government must clarify which workers are covered, how contributions will be shared among workers, platforms and the government, and how the scheme aligns with existing social protection laws to avoid duplication,” it said in a statement.
The EIS, managed by the Social Security Organisation (Perkeso), provides temporary income replacement and job search assistance to formal sector workers who lose their jobs.
Sim told the lower house that he had instructed Perkeso to study the feasibility of extending the scheme to gig and platform-based workers to ensure income protection for those in non-traditional employment.
Micsea said it supported the government’s aim of improving social safety nets but warned that any expansion of the EIS must consider the economic realities faced by businesses, particularly small and medium-sized enterprises.
“Any additional statutory obligations, whether in contributions, administration or reporting, should be introduced gradually with predictable cost structures,” it said, adding that employers already faced rising operational and compliance costs.
The group recommended an evidence-based approach, including transparent actuarial modelling, pilot programmes to test feasibility in selected sectors, and the full disclosure of administrative costs and benefit metrics.
“These steps will ensure that the expansion of the EIS does not inadvertently reduce business competitiveness or alter hiring dynamics,” it said.
Micsea added that it was ready to participate in stakeholder consultations, saying that with clear scope and balanced cost-sharing, Malaysia could improve worker protection without undermining enterprise growth.
Free Malaysia Today. (2025, November 5). Group wants clear framework, pilot projects before expanding EIS to gig workers. Retrieved from https://www.freemalaysiatoday.com/category/nation/2025/11/05/group-wants-clear-framework-pilot-projects-before-expanding-eis-to-gig-workers?fbclid=IwdGRzaAN3vDhjbGNrA3e8L2V4dYVW
- THE HEART WORK REVOLUTION
TEN years after its inception, the Life at Work Awards (LAWA) 2025 marked not just a milestone but a movement that celebrates how Malaysia’s workplaces are evolving with compassion, flexibility and purpose. Hosted by Talent Corporation Malaysia Bhd (TalentCorp), the gala night honoured organisations leading the way in shaping a fairer, more progressive, human-centred world […] - Group wants clear framework, pilot projects before expanding EIS to gig workersPETALING JAYA: The Malaysian Industrial, Commercial and Service Employers Association (Micsea) has called on the government to set a clear policy framework and run pilot projects before expanding the Employment Insurance System (EIS) to gig and platform-based workers. The association said the plan, announced by human resources minister Steven Sim in the Dewan Rakyat on […]
- Employer group seeks clarity on foreign worker pay rules after court ruling
KUALA LUMPUR (Nov 3): The Malaysian Industrial Commercial & Service Employers Association (MICSEA) is calling on the Ministry of Human Resources (MOHR) to issue clear and structured guidelines on wage payment timelines for foreign workers, following a recent court ruling that employers must pay wages from the moment these workers arrive in Malaysia. The call […] - HR minister: Court backpay ruling a warning for employers over unpaid migrant wages
PUTRAJAYA: Human Resources Minister Steven Sim said the Shah Alam High Court’s ruling on unpaid wages to foreign workers should serve as a clear warning to employers, as withholding salaries is a serious breach of Malaysia’s labour laws. Referring to the ruling delivered on Friday, he said the Human Resources Ministry would not compromise with […] - Malaysia steps up efforts to ensure fair, dignified worker housing, says HR minister
GEORGE TOWN, Oct 28 — Malaysia is committed to ensuring that accommodation provided to workers meets international standards. Human Resources Minister Steven Sim Chee Keong said the government is taking a firm stand to regulate and enforce the Workers’ Minimum Standards of Housing, Accommodations and Amenities Act 1990. He said compliance with ESG requirements is […] - Gig workers can be represented by family members, associations in disputes, says HR Minister
KUALA LUMPUR: Gig workers who are unable to represent themselves during dispute mediations in the Tripartite Council can be represented by family members or a body such as an association of gig workers, says Steven Sim. The Human Resources Minister also stated that unions can represent gig workers in the Tripartite Council only if they […] - Malaysia reaffirms commitment to workers’ welfare, regional solidarity at 14th Asean Labour Conference
GEORGE TOWN: Malaysia has underscored its firm commitment to upholding workers’ welfare, human dignity and regional cooperation during the 14th Asean Labour Inspection Conference. Human Resources Minister Steven Sim said Malaysia is committed to ensuring that the accommodation provided to workers is in line with international standards. He said the firm stand of the government […] - ILO chief begins inaugural official visit to Malaysia on Oct 20
PUTRAJAYA: International Labour Organisation (ILO) director-general Gilbert F. Houngbo will undertake a two-day working visit to Malaysia from Monday (Oct 20). The Human Resource Ministry said this marks the first official visit by an ILO director-general since Malaysia joined the organisation in 1957. “This visit signifies recognition of Malaysia’s active role and continued commitment to […] - Govt allows case-by-case foreign worker approvals until year-end, says Home Minsitry
PUTRAJAYA, Oct 14 — The government has agreed to grant facilitation for foreign worker quota applications on a case-by-case basis to three sectors, namely plantation, agriculture, and mining and quarrying, as well as ten subsectors, until December 31 this year, the Home Ministry announced. The subsectors are security services, metal and scrap materials, cleaning and […] - Malaysia to join Global Coalition for Social Justice next year
KUALA LUMPUR: Malaysia intends to join the Global Coalition for Social Justice at the 114th International Labour Conference (ILC) next year. The Human Resources Ministry in a statement on Tuesday (Oct 21) said the matter was revealed by its minister, Steven Sim Chee Keong, during a casual meeting with the Director-General of the International Labour […]