PERKESO should look into the feasibility of extending the Employment Insurance System (EIS) for gig workers, says Human Resources Minister Steven Sim (pic).
“At present, the EIS has not yet been extended to gig workers.
“However, I have instructed PERKESO to study the feasibility of implementing this or a similar scheme,” he said in his ministerial wind-up of debates on Budget 2026.
Sim noted that from January to October this year, a total of 846,907 individuals contributed to PERKESO’s Self-Employment Social Security Scheme (Lindung Kendiri). Of this number, 290,122 are workers in the e-hailing and p-hailing sectors.
The EIS, which was established in January 2018, provides income replacement for insured persons who have lost their jobs. It currently covers conventional workers.
The amendments to the EIS Act were tabled for the first reading yesterday.
In a statement following the tabling of the Bill, the ministry announced that several improvements have been introduced.
They include increased benefit rates and the introduction of a new benefit, which is the Mobility Assistance Allowance (EBM).
“Under this scheme, contributors who lose their employment will be entitled to protection and training support up to RM25,000,” it said.
A one-off payment of RM1,000 will be paid under the EBM if one gets a job that is located at a distance of more than 100km from their home, the ministry said.
On another note, the minister said paternity and maternity leave will be among the areas covered by the ministry’s labour law reforms.
“Regarding the proposal for 14 days of paid paternity leave, we have recently amended the Sarawak and Sabah Labour Ordinances to standardise seven days of paid paternity leave across Sabah, Sarawak and Peninsular Malaysia,” he said.
Sim said several tax incentives have been introduced to encourage women to return to the workforce, including tax deductions for employers who hire women returning to work and income tax exemptions for them.
“In our society, caregiving responsibilities often fall on women’s shoulders. I strongly advocate for shared responsibility between men and women,” he said, adding that the government also offers additional tax deductions to employers who provide up to 12 months of paid family care leave.
He said this is intended to facilitate women’s participation in the workforce and help achieve the 60% female labour force participation rate.
As for the flexible work arrangement (FWA), the minister said it is not confined to exceptional situations; rather, it can be implemented in all circumstances.
“Private sector employees have the option to request FWA from their employers. These arrangements can encompass modifications to working hours, working days, or even the location of work.
“The government provides a 50% tax incentive to employers who invest in software and supporting infrastructure for such arrangements,” he said.
