New law provides legal framework for 1.64 million gig workers, ensuring social protection and fairer wages in Malaysia’s evolving economy.
KUALA LUMPUR: The Gig Workers Act 2025 came into effect today, hailed as a historic step for worker welfare in Malaysia’s digital economy.
The Malaysian E-Hailing Coalition (GEM) said the act proves labour reforms are underway, aligning with the prime minister’s commitment to a fairer employment ecosystem.
GEM chief activist Masrizal Mahidin stated that Malaysia could become a regional model if the act is implemented effectively and consistently.
“Let us together shape a future for gig workers that is better protected, sustainable, innovative, and competitive,” he said.
Masrizal also thanked Human Resources Minister Datuk Seri R. Ramanan for introducing the proactive legislation.
Passed by Parliament last year, the act establishes a legal framework for individuals working on e-hailing platforms.
It guarantees access to social protection, dispute resolution mechanisms, and fairer wage structures for an estimated 1.64 million workers.
Previously, gig workers operated under contract-for-service arrangements, classifying them as self-employed.
This status left them without protection under the Employment Act 1955, including mandatory EPF and Perkeso contributions from platform companies.
