KUALA LUMPUR: The government and e-hailing platform provider Grab have agreed to co-fund a RM160mil package aimed at boosting net income and improving the welfare of e-hailing and p-hailing workers from next year.
Prime Minister Datuk Seri Anwar Ibrahim said the package covers an increase in the minimum income rate for e-hailing and p-hailing workers, assistance for vehicle maintenance costs and insurance, as well as Social Security Organisation (PERKESO) contributions.
"This means median net income for e-hailing drivers is expected to increase by up to RM227 a month, while p-hailing delivery riders will see an increase of up to RM100 a month," he said when tabling Budget 2027, themed "Reaching for the Sky, Rooted in the Ground", in the Dewan Rakyat on Friday (Oct 9).
Anwar, who is also Finance Minister, said the move was taken while waiting for the Gig Consultative Council, which is negotiating to establish minimum income rates, income formulas, and minimum social protection standards for gig workers, expected to be finalised early next year.
He said about 600,000 Malaysians earned their living as e-hailing drivers and p-hailing riders, emphasising that the Madani government would champion the plight of gig workers through more comprehensive protection.
In addition, Anwar said the government had agreed to offer a 35% PERKESO matching contribution incentive to e-hailing and p-hailing workers, which would be increased to 50% if platform companies also covered contributions for workers.
"Apart from e-hailing and p-hailing workers, the government is also offering a 70% PERKESO matching contribution incentive to more than 200,000 self-employed individuals across 17 non-mandatory sectors," he said.
Anwar said PERKESO tax relief would also be expanded to cover mandatory contributions under the Self-Employment Social Security Scheme, with an additional relief of up to RM150 provided for voluntary contributions to the 24-Hour Protection and Self-Employment Protection schemes.
He said the government was also offering an Employees Provident Fund (EPF) matching contribution incentive of up to RM600 a year or RM6,000 over a lifetime to encourage retirement savings among e-hailing drivers and p-hailing riders.
Anwar said Bank Simpanan Nasional (BSN) and Agrobank would provide RM270mil to fund gig workers who wished to venture into business or purchase their first home.
He said that to strengthen social protection, every citizen would be automatically registered as an EPF member upon reaching age 18 so that retirement savings begin earlier. – Bernama
