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SHAH ALAM - The government and Grab will jointly fund a RM160 million package from 2027 to improve the net income and welfare of e-hailing drivers and p-hailing delivery riders.
Finance Minister Datuk Seri Anwar Ibrahim said the package would include higher minimum income rates, assistance for vehicle maintenance and insurance, as well as contributions to the Social Security Organisation (Perkeso).
“This package aims to increase the net income and improve the welfare of e-hailing and p-hailing workers,” he said when tabling the 2027 Budget at the Dewan Rakyat, today.
The Prime Minister said about 600,000 Malaysians earn a living as e-hailing drivers and p-hailing delivery riders, stressing the need for more comprehensive protection for those in the gig economy.
Under the package, median-level e-hailing drivers are expected to see their net income increase by up to RM227 a month, while p-hailing delivery riders could receive an increase of up to RM100 a month.
The measures will be introduced while the Gig Consultative Council continues negotiations on minimum income rates, income calculation formulas and minimum social protection standards for gig workers.
The council is expected to finalise its decisions in early 2027.
The government will also offer a 35 per cent matching contribution incentive for Perkeso contributions to e-hailing drivers and p-hailing riders. The incentive will increase to 50 per cent if platform companies also contribute towards workers’ contributions.
Beyond the gig economy, the government will provide a 70 per cent matching contribution incentive for more than 200,000 self-employed individuals across 17 sectors where social security contributions are not mandatory.
Tax relief for Perkeso contributions will also be expanded to cover mandatory contributions under the Lindung Kendiri scheme.
An additional tax relief of up to RM150 will be provided for voluntary contributions to the Lindung 24 Jam and Lindung Kendiri schemes.
To encourage gig workers to save for retirement, the government will offer matching contributions to the Employees Provident Fund (EPF), with incentives of up to RM600 a year or RM6,000 over a lifetime.
In addition, Bank Simpanan Nasional (BSN) and Agrobank provide RM270 million to finance gig workers who want to start businesses or purchase their first homes.
The government will also introduce comprehensive regulation of the p-hailing sector under the Land Public Transport Agency (APAD) and the Commercial Vehicle Licensing Board (LPKP).
