logo
Perkeso contributions to be mandatory under Gig Workers Bill, says Sim

Perkeso contributions to be mandatory under Gig Workers Bill, says Sim

KUALA LUMPUR: All platform providers will be required to deduct contributions to the Social Security Organisation (Socso) under the Gig Workers Bill.
Human Resources Minister Steven Sim said the percentage or deduction rate for each transaction will be determined through rules that will be released later.
"Socso will strengthen monitoring mechanisms and conduct regular audits on platform providers to ensure full compliance with social security protection requirements.
"In addition, an integrated digital system is being developed to facilitate centralised coordination of gig workers' contribution registration data," he said in a written parliamentary reply.
He said the Employees Provident Fund (EPF) has introduced i-Saraan, a voluntary contribution scheme that provides gig workers the opportunity to contribute towards their retirement.
"However, the decision on whether EPF contributions should be made mandatory for gig workers falls under the purview of the Finance Ministry," he said.
On minimum income rates for gig workers, Sim said it is the duty of the Gig Consultative Council to oversee the matter.
"The function of this council is to advise and make recommendations to the government regarding minimum income rates, the formula for determining enforcement dates, order reviews, and other matters relating to gig workers and contracting entities.
"This council will operate on a tripartite basis, involving representatives of gig workers, employers or platform providers, and the government," he said.
He was responding to a question from Datuk Dr Ahmad Marzuk Shaary (PN-Pengkalan Chepa) on the matter.
Earlier, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi had said the bill would be tabled in the Dewan Rakyat for its first reading on Aug 14, with the second reading scheduled for Aug 26.
However, the bill has yet to be tabled due to a last-minute delay.
Last week, Sim reportedly assured that the bill would still be tabled this month.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Perkeso contributions to be mandatory under Gig Workers Bill, says Sim
Perkeso contributions to be mandatory under Gig Workers Bill, says Sim

New Straits Times

time9 hours ago

  • New Straits Times

Perkeso contributions to be mandatory under Gig Workers Bill, says Sim

KUALA LUMPUR: All platform providers will be required to deduct contributions to the Social Security Organisation (Socso) under the Gig Workers Bill. Human Resources Minister Steven Sim said the percentage or deduction rate for each transaction will be determined through rules that will be released later. "Socso will strengthen monitoring mechanisms and conduct regular audits on platform providers to ensure full compliance with social security protection requirements. "In addition, an integrated digital system is being developed to facilitate centralised coordination of gig workers' contribution registration data," he said in a written parliamentary reply. He said the Employees Provident Fund (EPF) has introduced i-Saraan, a voluntary contribution scheme that provides gig workers the opportunity to contribute towards their retirement. "However, the decision on whether EPF contributions should be made mandatory for gig workers falls under the purview of the Finance Ministry," he said. On minimum income rates for gig workers, Sim said it is the duty of the Gig Consultative Council to oversee the matter. "The function of this council is to advise and make recommendations to the government regarding minimum income rates, the formula for determining enforcement dates, order reviews, and other matters relating to gig workers and contracting entities. "This council will operate on a tripartite basis, involving representatives of gig workers, employers or platform providers, and the government," he said. He was responding to a question from Datuk Dr Ahmad Marzuk Shaary (PN-Pengkalan Chepa) on the matter. Earlier, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi had said the bill would be tabled in the Dewan Rakyat for its first reading on Aug 14, with the second reading scheduled for Aug 26. However, the bill has yet to be tabled due to a last-minute delay. Last week, Sim reportedly assured that the bill would still be tabled this month.

RM2 billion HRD levy fund unlocked for graduate hiring in Malaysia
RM2 billion HRD levy fund unlocked for graduate hiring in Malaysia

The Sun

time10 hours ago

  • The Sun

RM2 billion HRD levy fund unlocked for graduate hiring in Malaysia

PETALING JAYA: Human Resources Minister Steven Sim Chee Keong has unveiled a RM2 billion allocation from the human resources development (HRD) levy fund to support graduate hiring. The initiative, described as a Merdeka gift, will allow employers to use levy funds for salaries of university and TVET graduates starting 1 September 2025. Sim made the announcement during his speech at the Federation of Malaysian Manufacturers (FMM) Annual Dinner 2025. He emphasised that the move aims to improve employer cashflow while prioritising human capital development. The minister noted that the policy will create higher-paying jobs and enhance on-the-job training opportunities for graduates. Sim urged industries to balance technological advancements with human capital investment amid rising AI adoption. He warned that AI could diminish the value of traditional academic degrees in the job market. Malaysia has invested RM77.2 billion in digitalisation efforts as of last year, according to the minister. Global tech giants like Google, Microsoft, Bytedance, and Amazon have pledged over RM60 billion in Malaysian investments. The National Semiconductor Strategy has attracted RM46.5 billion in high-tech sector investments, including wafer fabrication and AI chip production. The FMM event also celebrated the organisation's 57th anniversary. Digital Minister Gobind Singh Deo and FMM leaders Tan Sri Soh Thian Lai and Lee Chor Kok attended the dinner. The HRD levy fund initiative aligns with Malaysia's push for skilled workforce development in high-growth industries. Sim's announcement reflects the government's focus on bridging the gap between education and employment. The policy is expected to benefit both employers and fresh graduates entering the competitive job market. - Bernama

Unresolved issues cloud Gig Workers Bill
Unresolved issues cloud Gig Workers Bill

New Straits Times

time10 hours ago

  • New Straits Times

Unresolved issues cloud Gig Workers Bill

KUALA LUMPUR: The delay in the tabling of the Gig Workers Bill has raised critical questions about its preparedness to address the complexities of the gig economy and its economic impact, experts said. The bill, which is aimed at regulating Malaysia's growing gig economy, has been delayed again for the third time. Initially scheduled for its first reading in Parliament on Aug 14 this year, the postponement follows earlier delays. Despite assurances from Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi and Human Resources Minister Steven Sim during the 'Sembang Santai Teh Tarik: Industri Gig' event on Aug 7, no official explanation has been provided, leaving gig workers and industry players frustrated. The bill, heralded as the first of its kind globally, aims to provide protections for gig workers while fostering a fair and inclusive economy. A cornerstone of the bill is the establishment of the Malaysian Gig Economy Commission, which will act as the sector's primary regulatory body. While the bill has received widespread support, particularly from e-hailing associations, stakeholders have raised concerns about unresolved issues. Child care services provider Kiddocare head of business development Rahman Hussin emphasised the need for a regulatory impact analysis before introducing new legislation. He also raised concerns about setting a minimum wage for gig workers, noting that defining minimum working hours could conflict with the flexible nature of gig work. "The essence of gig work is flexibility. Workers decide their own schedules, and imposing minimum hours could undermine this," Rahman said. The Malaysian Bar Council has also weighed in, recommending clearer provisions on Social Security Organisation (Socso) contributions for gig workers engaged across multiple platforms. They called for further clarification on the consultative council's powers, warning that limitations on competition and innovation could lead to higher service costs for consumers. The council, in a statement, also flagged the bill's strict prohibition on deductions from gig workers' incomes, tips and rewards, and urged flexibility for scenarios such as overcharging consumers or loans with platform providers. Additionally, it cautioned against regulatory overlaps between the Human Resource Ministry and Transport Ministry in regulating e-hailing and p-hailing drivers, which could create inconsistencies. The gig economy's rapid growth highlights the importance of addressing these concerns, exeprts said. Policymakers face challenges in balancing worker protections with platform providers' operational needs, they added. While the delay is a setback, experts argue that thorough legislation is necessary to avoid loopholes or unintended consequences. Economist specialising in Southeast Asian development Doris Liew told Business Times that a key concern of the gig worker bill is the risk of additional costs being transferred to consumers. She added that for drivers, stricter rules and the potential introduction of mandatory minimum working hours could further strain their already slim margins. "The delay in tabling the bill could be due to many reasons, such as parliamentary scheduling, or even how the public might react once the details are revealed. "Still, with more than 4,000 stakeholders already consulted, the first reading should not come as much of a surprise if it truly takes their views into account," she added. Liew pointed out that the larger issue is whether the country is truly ready to implement the bill. She highlighted that while the gig economy is now deeply embedded in daily life and the wider economy, it has long functioned without proper regulation. "This has left workers facing persistent problems, including weak workers protection, little social security and limited pathways for upward mobility. "Whether the first version of the bill can fix all these gaps is uncertain. But it is at least a step in the right direction that the government is finally moving to address them," Liew said. She emphasised that what is important now is ensuring policies are flexible enough to address real on-the-ground needs, rather than being tied to rigid rules that could soon become outdated. As Malaysia seeks to position itself as a global leader in gig economy regulation, the successful passage of the Gig Workers Bill must be approached with careful consideration and time, only then it could serve as a model for other nations, experts said. For now, they added, gig workers and industry players await updates, hopeful that the legislation will deliver the clarity and protections they need.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store