MORE than 5,000 delivery riders engaged with a fast food chain will be covered under the Self-Employment Social Security Scheme (SESSS) for one year.
This follows a memorandum of understanding (MOU) between McDonald’s Malaysia and the Social Security Organisation (Socso) for the restaurant chain to sponsor all its delivery riders for a sum of RM250,000 (RM46.60 per individual).
As a result, McDonald’s food delivery riders who are classified as self-employed under the provisions of the Self-Employment Social Security Act 2017 are now entitled for protection under the SESSS against employment injuries, including occupational diseases and accidents during work-related activities.
Under the 2023 Budget (which was tabled on Oct 7 but not passed after Parliament was dissolved), the government will bear 80% (RM186.20) from the Socso contributions for self-employed individuals categorised under Plan 2 (totalling RM232.80) of the SESSS.
The SESSS provides self-employed individuals access to medical benefits, education benefits, temporary and permanent disability benefits, funeral benefits, physical or vocational rehabilitation facilities as well as dependents’ benefits.
McDonald’s Malaysia managing director and local operating partner Datuk Azmir Jaafar said the restaurant chain had always looked for ways to improve benefits and incentives for food delivery riders.
“Although they work independently, they are on the front line ensuring the effectiveness of our McDelivery service,” he said after signing the MOU with Socso chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed at the McDonald’s Vocational Academy in Petaling Jaya, Selangor.
Socso chairman Datuk Seri Subahan Kamal said the organisation was actively implementing various strategies to ensure that more self-employed in the country contribute to SESSS.
“Based on statistics, there are 2.7 million Malaysians who are self-employed, but only 568,686 of them are registered with SESSS until Sept 30 this year,” he said.
Also present were Socso deputy chief executive officer (operations) John Riba Marin along with McDonald’s Malaysia government relations director Datuk Seri Mohammed Nasir Rakhir and human resources deputy president Azhar Darbi.