Kuala Lumpur: 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).
According to BERNAMA News Agency, Human Resources Minister Steven Sim stated that 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. Sim emphasized that the passage of the Gig Workers Bill would increase the number of protected workers because gig workers would be required to contribute, and handling companies would need to cooperate with SOCSO to manage contributions automatically.
Sim made these remarks 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.
According to Sim, nearly one million contributors benefited from SKSPS last year, with 12 to 13 per cent comprising workers in the goods and food transportation sector, including e-hailing and p-hailing services. SKSPS recorded 4,758 claims last year, resulting in benefit payments totaling RM24.2 million, with the goods and food transportation sector accounting for 1,535 claims and payouts nearing RM9 million.
To expand social protection coverage for gig workers under SOCSO, the ministry is actively collaborating with local government authorities (PBT) to facilitate contributions for licensed hawkers. The ministry has also partnered with the Ministry of Transport and the Ministry of Communications to extend protection benefits to bus, school bus, and taxi drivers, as well as artistes and art activists.
Regarding the MoU, Sim said that Foodpanda has agreed to sponsor approximately RM200,000 to provide a free protection scheme for over 8,000 of its delivery riders. Tan remarked that with this MoU, Foodpanda aims to build a structured and supportive ecosystem that balances flexibility and security for its riders. He further stated that as the gig economy evolves, Foodpanda would continue to explore new ways to support its riders, ensuring they receive the recognition and protection they deserve.