Gig platforms granted up to 6-month moratorium for SOCSO integration: Ramanan

LocalPolitics
31 Mar 2026 • 1:58 PM MYT
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Govt allows gig platforms 3–6 months to integrate SOCSO system before Gig Workers Act enforcement.

PUTRAJAYA: The government will allow a three- to six-month adjustment period for gig platform providers to complete the technical integration of the Social Security Organisation (SOCSO) system into their applications.

Responding to industry concerns over tight timelines ahead of the Gig Workers Act 2025 enforcement today, Human Resources Minister Datuk Seri R. Ramanan said platform operators had already been given early notice and multiple engagement sessions to prepare for the transition.

“We have given them notice since March 2025 — all platforms.

“We have also held numerous sessions with them to discuss the matter,” he said at a press conference today.

Ramanan said that the government recognises the need for time to adapt to new requirements, particularly on the technical side.

“In everything we do, when there’s change, we need time to adapt.

“As long as you are taking the necessary steps, which we are monitoring closely, it is perfectly fine to take that three to six months moratorium,” he said.

He stressed that authorities would not immediately penalise companies still in the process of compliance.

“We are not going to go on a witch hunt and immediately go after you if you are not doing it tomorrow.

“The government has already provided ample time. We are still being reasonable by allowing this period.

“But once the Act comes into play, it has to be enforced and taken seriously,” he added.

Previously, industry players — from platform operators to gig workers — had expressed concerns that the Act was rushed through Parliament and could potentially hamper, rather than support, the growth of the gig economy.

Addressing claims that only major players were consulted, Ramanan highlighted that SOCSO has been actively engaging with a range of platform providers on a one-to-one basis since March 2025.

These sessions covered system integration, including application programming interfaces (APIs), technical processes, and operational readiness, to ensure smooth compliance with the legislation.

Under the system, gig workers’ Socso contributions will be calculated automatically based on completed tasks, with platform providers deducting 1.25% from each completed assignment and channeling the contributions directly to Socso through integrated API systems.

Workers can register across multiple platforms, but all contributions will be consolidated under a single account, ensuring streamlined social security coverage.

Gig workers will also have the option to select monthly income plans ranging from RM1,050 to RM3,950, providing protection suited to their earnings.

The coverage includes medical benefits, temporary and permanent disability protection, dependent benefits, and funeral management assistance.