Gig Workers Bill Aims To Make Compulsory For Gig Workers To Contribute To SOCSO - Sim

KUALA LUMPUR, March 13 (Bernama) -- The Ministry of Human Resources (KESUMA) will work to ensure the Gig Workers Bill is passed and enforced as soon as possible to make it mandatory for gig workers to contribute to the Social Security Organisation (SOCSO).

Human Resources Minister Steven Sim said currently, only 26 per cent of Malaysia's 1.16 million gig workers contribute to the Self-Employment Social Security Scheme (SKSPS), as participation is voluntary.

“After the Gig Workers Bill is passed, it will certainly increase the number of people who can be protected because after that, these gig workers are required to contribute and the handling companies are required to cooperate with SOCSO to manage contributions automatically.

“So we will continue to hold discussions with the companies and also representatives of gig workers so that our aim to table the Gig Workers Bill and get it passed by Parliament at the next session in June can be realised,” he told reporters today.

He said this after witnessing the signing of a Memorandum of Understanding (MoU) between SOCSO, represented by its Group Chief Executive Officer Datuk Sri Dr Mohammed Azman Aziz Mohammed and Foodpanda Malaysia, represented by its managing director Tan Ming Luk,  at the SOCSO Tower here.

According to Sim, nearly one million contributors benefited from SKSPS last year, with 12 to 13 per cent of them comprising workers in the goods and food transportation sector, including e-hailing and p-hailing services.

"Last year, SKSPS recorded 4,758 claims, resulting in benefit payments totalling RM24.2 million. Of that amount, the goods and food transportation sector alone accounted for 1,535 claims, with payouts of nearly RM9 million," he said.

To expand social protection coverage for gig workers under SOCSO, Sim said the ministry is actively collaborating with local government authorities (PBT) to facilitate contributions for licensed hawkers.

"We also partnered with the Ministry of Transport and the Ministry of Communications last year to extend protection benefits to bus, school bus, and taxi drivers, as well as artistes and art activists," he added.

Regarding the MoU, Sim said that Foodpanda has agreed to sponsor about RM200,000 to provide a free protection scheme for over 8,000 of its delivery riders.

Meanwhile, Tan said that with the signing of the MoU, the company will be able to build a structured and supportive ecosystem that balances flexibility and security for their riders.

"This is not the first time Foodpanda has taken such steps, but as the gig economy evolves, it is critical that we continue to support our riders in achieving a sustainable livelihood.

"Therefore, moving forward, Foodpanda will continue to explore new ways to support its riders, ensuring they receive the recognition and protection they deserve," he said.

-- BERNAMA