Jakarta:Prime Minister Datuk Seri Anwar Ibrahim announced a collaboration between the government and Grab to co-fund a RM160 million package designed to boost the net income and welfare of e-hailing and p-hailing workers starting next year.

According to BERNAMA News Agency, the package includes an increase in the minimum income rate, assistance with vehicle maintenance costs and insurance, and contributions to the Social Security Organisation (Socso). The initiative is projected to raise the median net income of e-hailing drivers by up to RM227 monthly and p-hailing riders by up to RM100 monthly.

Anwar elaborated that this measure is in place while the Gig Consultative Council negotiates to establish minimum income rates, income formulas, and social protection standards for gig workers, with conclusions expected early next year. Highlighting the significance of this initiative, he noted that approximately 600,000 Malaysians are engaged in e-hailing and p-hailing work, with the MADANI Government committed to enhancing gig workers' protection.

Moreover, the government plans to offer a 35 percent Socso matching contribution incentive to e-hailing and p-hailing workers, increasing to 50 percent if platform companies contribute as well. An incentive of 70 percent Socso matching contribution is also available to over 200,000 self-employed individuals across 17 sectors.

The initiative extends to tax relief for Socso contributions under the Self-Employment Social Security Scheme, with additional relief up to RM150 for voluntary contributions. An Employees Provident Fund (EPF) matching contribution incentive is offered, with up to RM600 annually or RM6,000 over a lifetime to encourage retirement savings.

Additionally, Bank Simpanan Nasional (BSN) and Agrobank will provide RM270 million to support gig workers who aim to start businesses or purchase their first homes. To further strengthen social protection, all citizens will automatically become EPF members upon turning 18 to begin their retirement savings sooner.