The Budget 2027 tabling brings some good news to gig economy workers. Prime Minister Anwar Ibrahim, who is also Finance Minister, has announced that the government and Grab are funding a RM160 million package to increase the median net income of e-hailing and p-hailing workers. More specifically, the median net income a month for e-hailing drivers is expected to go up by RM227 early next year, while p-hailing riders are expected to earn RM100 more a month.
Anwar said that the Gig Consultative Council is deciding on the minimum income rates for gig workers, which will be finalised in early 2027. In the meantime, the government and Grab have agreed to fund the package mentioned above, which will go to not just higher minimum income rates, but also vehicle maintenance, insurance, and Social Security Organisation (Socso / Perkeso) contributions. He also said that the government would offer a 35% matching contribution incentive for Perkeso contributions by gig workers themselves. This will go up to 50% if the platform companies also contribute to the workers’ funds.
To encourage retirement savings among e-hailing and p-hailing workers, Anwar also said that the government would offer matching Employees Provident Fund (EPF / KWSP) contributions, up to RM600 annually. This has a lifetime cap of RM6,000. Bank Simpanan Nasional (BSN) and Agrobank will also have a RM270 million fund to help gig workers start their own businesses and buy their first home.
The Prime Minister has shared that over 600,000 Malaysians earn a living as e-hailing or p-hailing workers. While they will benefit from the aforementioned fund, they are not the only ones to get help. Beyond gig workers, the Prime Minister also said that the government will offer a 70% matching Perkeso contribution incentive to over 200,000 self-employed workers across 17 sectors where contributions are not mandatory.
(Source: Parlimen Malaysia / Youtube)
