Automatic PERKESO deductions a must under gig workers law, says Steven Sim


KUALA LUMPUR: Gig economy platform providers or employers must automatically deduct Social Security Organisation (PERKESO) contributions from workers' earnings under the Gig Workers Bill, says Steven Sim.

The Human Resources Minister said the Bill, passed by the Dewan Rakyat on Aug 28 and the Dewan Negara on Sept 9, legally requires platform providers to submit worker information to PERKESO and integrate automatic contribution deductions through their systems.

"This Bill ensures gig workers are no longer left behind.

"Platform providers must automatically deduct the contributions through their digital intermediary systems so workers no longer have to manage contributions on their own," he said in a written parliamentary reply dated Tuesday (Nov 18).

Sim added that the automated mechanism would also allow PERKESO to collect contributions more transparently and effectively, without placing additional administrative burden on platform operators.

As of Sept 19, PERKESO records show 297,073 gig workers actively contributing under the Lindung Kendiri (self-employed protection) scheme.

He added that enforcement powers under the Self-Employment Social Security Act 2017 (Act 789) would now enable PERKESO to conduct inspections and ensure full compliance among platform providers.

Sim said that to support nationwide implementation of the Bill, the ministry has held 7,208 engagement sessions with agencies and gig workers, including several large-scale rider events nationwide.

"A Smart Detection system has also been introduced to identify platforms that fail to register or contribute for their workers.

"Gig workers are a vital part of Malaysia’s new economy, and they deserve the same level of social protection as formal-sector employees," Sim added.

 

 

 

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