What's Happening?
Lawmakers in Malaysia are advocating for a clearer legal definition of gig workers ahead of the anticipated tabling of the Gig Worker Bill in Parliament. The absence of a standardized definition leaves gig workers vulnerable and outside the scope of labor protection laws. This issue was highlighted during the debate on the 2023 Human Rights Commission of Malaysia report. The bill aims to establish a social protection framework for over 1.12 million Malaysians in the gig sector. The government plans to introduce mandatory social protection contributions for gig workers through the Social Security Organisation starting January 2026.
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Why It's Important?
The push for clearer legal definitions and protections for gig workers is crucial as the gig economy continues to grow. By 2025, over 26% of Malaysia's workforce is expected to rely on gig income. Without proper legal frameworks, gig workers face health and safety risks and lack a dedicated complaint channel or minimum wage guarantees. The proposed bill and social protection measures could provide a safety net for these workers, ensuring fair treatment and reducing occupational risks.
What's Next?
The Gig Worker Bill is expected to be presented during the current parliamentary session. If passed, it will introduce mandatory social protection contributions for gig workers, enhancing their safety and financial security. The government will also continue to promote voluntary self-contribution mechanisms like the i-Saraan scheme under the Employees Provident Fund for informal workers.
