In conjunction with Prime Minister Dato’ Seri Anwar Ibrahim’s announcement regarding the increase in the minimum income for Malaysian workers from RM1,700 to RM2,000, he also revealed that the government is currently negotiating to establish a minimum income for gig workers in Malaysia.
There are 600,000 Malaysians earning a living as ride-hailing drivers and delivery personnel for food and goods. To ensure these workers earn an income commensurate with their work, the Gig Consultative Council is currently negotiating to set minimum income rates for them.
The income formula and minimum social protection standards for gig workers are expected to be finalized in early 2027. Pending the outcome of these negotiations, the government and Grab have agreed to jointly fund a financial package worth RM160 million to boost the workers' net income starting in 2027.
This package will cover an increase in minimum income rates for gig workers, while also helping to offset costs for vehicle maintenance, insurance payments, and SOCSO (PERKESO) contributions.
It is estimated that with this financial assistance, the median net income for ride-hailing drivers will increase by RM227 per month, while delivery personnel will see an increase of up to RM100 per month.
Regarding SOCSO contributions, the government has agreed to offer a 35 percent matching contribution incentive for ride-hailing and delivery gig workers. This incentive will be raised to 50 percent if the platform companies agree to bear the contribution costs for these workers.
