Putrajaya: The Gig Workers Act 2025 (Act 872), which officially came into force today, is set to benefit about 1.64 million individuals involved in the country’s gig sector. Human Resources Minister Datuk Seri R. Ramanan said the historic achievement places Malaysia among the first in Asia to introduce specific labour legislation to comprehensively protect gig workers.
According to BERNAMA News Agency, this Act is a sign of the government’s commitment to defend the fate and future of those who have been the backbone of the country’s digital economy. Ramanan emphasized that the MADANI Government is committed to ensuring the progress of the digital economy is in tandem with worker protection, making Malaysia a model of reference for a fairer and more sustainable gig economy development ecosystem.
Under Act 872, gig workers now have clearer legal protections, including transparency in service agreements, agreed-upon income rates, a prohibition on discrimination, social security coverage through PERKESO, as well as occupational safety and health protection. The definition of a gig worker refers to a Malaysian citizen and permanent resident who enters into an agreement with a contracting entity and receives payment for each service provided.
The act not only covers platform workers, such as e-hailing drivers and p-hailing delivery riders, but also protects non-platform gig workers, including those in the film, music, translation, and journalism sectors. Ramanan also addressed social media allegations, denying claims that foreign workers are protected under the act. However, he assured that gig workers will continue to enjoy flexible working arrangements, and the legislation will not disrupt the gig ecosystem.
As for social security, platform providers are responsible for ensuring workers are registered under Act 789, with automatic deductions for the Self-Employment Social Security Scheme (Lindung Kendiri) contribution at a rate of 1.25 per cent of daily task earnings, without affecting tips or incentives. The act also provides a more structured dispute resolution mechanism through the Industrial Relations Department (JPPM) and the Gig Workers Tribunal.
In case of account suspensions, platform providers are required to give a written notice and a deactivation period of no more than 14 days for investigation. If workers are found not guilty, their accounts must be reactivated, and they are eligible to receive 50 per cent of their expected earnings for the inactive period.
To facilitate the enforcement of this act, the ministry has introduced the eAduan system, accessible from April 1, at https://eaduan-gig.mohr.gov.my/, allowing workers to file gig-related complaints. The ministry aims to resolve complaints within 21 working days, depending on the complexity of the case, and complaints can also be submitted in person at any agency under the ministry, aligning with the ‘No Wrong Door Policy’.
To further strengthen the sector’s governance, 26 individuals have been appointed to the Gig Consultative Council (MPGIG), with the first meeting scheduled for April 3. Among other topics, it will discuss gig worker income rates to achieve a comprehensive resolution.