The Gig Workers Act 2025 will be enforced this year, providing a legal framework to protect the welfare of Malaysia’s 3.45 million informal sector workers.
KUALA LUMPUR: The government will begin enforcing the Gig Workers Act 2025 this year. This provides a clearer legal framework to recognise the status of gig workers and safeguard their welfare.
Human Resources Minister Datuk Seri R Ramanan said the move reflects the ministry’s commitment to strengthening the social safety net for 3.45 million informal sector workers. These workers make up 21.8% of the country’s total workforce.
He added that through amendments to the Employees’ Social Security Act 1969, the government has also introduced the 24-Hour LINDUNG Scheme. This provides comprehensive protection throughout the period of employment, including coverage for accidents occurring outside working hours.
“The principle of leaving no one behind will continue to underpin the nation’s labour and social protection policies,” Ramanan said.
He stated the government is committed to ensuring that the development of the national digital economy does not come at the expense of workers’ well-being. He made these remarks when winding up the debate on the motion of thanks for the Royal Address for his ministry in the Dewan Rakyat.
To encourage participation, the government has provided incentives under Budget 2026. These cover 70% of contributions for first-time registrants in non-mandated sectors under the Self-Employed LINDUNG Scheme.
A 50% incentive is also provided for voluntary contribution renewals in the second year. As of December 31 last year, a total of 869,913 self-employed individuals had registered and were actively contributing under the scheme.
This figure includes 299,674 gig workers and e-hailing service providers.