Government to subsidise 80% of insurance cost for self-employed, gig workers starting next year

  • Nation
  • Wednesday, 17 Nov 2021

KUALA LUMPUR: The government will subsidise 80% of the cost of insurance under the Social Security Organisation (Socso) for self-employed and gig workers beginning next year, says Datuk Awang Hashim.

"The government has agreed to subsidise up to 80% of RM238 insurance cost for the gig workers under the scheme.

"This means that those under the scheme will only have to pay the remainder with some only having to pay about RM20," the Deputy Human Resources Minister said when replying to a question raised by Datuk Salim Sharif (BN-Jempol) in Dewan Rakyat on Wednesday (Nov 17).

Currently, the government contributes 70% to Socso's Self-Employed Social Security Scheme for registered self-employed or gig workers and contributions by the government presently range from RM163.00 from RM232.80 per year for protection under the scheme.

There are currently an estimated four million gig workers in the country.

Awang said the insurance scheme would not only offer protection to contributors but would also benefit their spouses and children.

"For example, spouses will continue to receive pension benefits for the rest of their lives while the education needs of their children will be covered till they reach 18," he said.

Meanwhile, Awang lauded a suggestion made by Fahmi Fadzil (PH-Lembah Pantai) to expand the scope of the insurance protection to cover delivery riders who had registered themselves with delivery companies under the names of their family members.

"I have received complaints that there are riders who use their sibling's accounts and were not covered by the company when they were involved in accidents.

"How many riders have registered under this manner and can they also be given protection?," Fahmi said.

Awang said he would take Fahmi's proposal up for consideration to better improve protection for such delivery riders.

Earlier, Awang informed the House that it was mandatory for all goods and food delivery riders to register themselves under the Socso protection scheme as of Oct 1 this year.

He said the delivery riders had four options under the coverage plan involving contributions between RM157.20 and RM592.80 a year.

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