New legislation on gig workers to ensure comprehensive welfare - DPM Ahmad Zahid

New legislation on gig workers to ensure comprehensive welfare - DPM Ahmad Zahid

Bernama

28/10/2024


A new act aimed at safeguarding the welfare of gig economy workers is set to be introduced, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said. - Astro AWANI/ Shahir Omar


PUTRAJAYA: A new act aimed at safeguarding the welfare of gig economy workers is set to be introduced, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said.

He said the proposed legislation will be tabled by the Human Resources Ministry (KESUMA) in the current session of the Dewan Rakyat, immediately after the conclusion of debates on the Supply Bill 2025.

“This act will introduce a safety net for gig workers, ensuring comprehensive protection that includes not only contributions to the Employees Provident Fund (EPF) but also coverage from the Social Security Organisation (Perkeso), as well as provisions for medical treatment costs,” he told newsmen after the launch of the Malaysia MADANI Gig Economy Convention here today.

In his speech earlier, Ahmad Zahid, who is also Rural and Regional Development Minister, said the legislation sends a clear message that the government stands in solidarity with the 1.16 million gig workers nationwide.

He said this initiative positions Malaysia as one of the first countries to enact specific legislation for workers in the gig economy.

Ahmad Zahid said although medical treatment costs proposed under the new legislation could bring about possible financial implications, it is deemed necessary to ensure the welfare of gig workers is protected.

“We will thoroughly discuss this matter with the Ministry of Finance, the Ministry of Human Resources (KESUMA), and the Malaysian Gig and Labour Union Secretariat who will give its feedback after consultations are done with universities, Universiti Malaya (UM) in particular.

“UM has provided the secretariat and KESUMA with advisory services, including legal insights,” he said.

Addressing the differences between this new legislation and existing labour laws, Ahmad Zahid said current laws do not specifically address the latest developments in the gig economy.

“Based on a recommendation from the Human Resources Minister, the Cabinet has decided that a dedicated act is essential to ensure that this legislation does not conflict with existing laws,” he added.

In a related development, he said the Malaysian Gig and Labour Union Secretariat has proposed extending Perkeso’s protection to cover gig workers outside their official working hours.

The Malaysian Gig Economy Convention, organised by the Malaysian Gig and Labour Union Secretariat, gathered around 600 participants, including gig economy workers, platform operators, policymakers, government representatives and corporate stakeholders.

-- BERNAMA