Malaysian gig economy commission to strengthen worker protections

LocalBusiness & Finance
9 Mar 2026 • 7:37 AM MYT
The Sun Daily
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The new SEGiM commission will oversee gig economy governance as the Gig Workers Act 2025 comes into force, introducing key protections and a tripartite council

KUALA LUMPUR: The newly established Malaysian Gig Economy Commission (SEGiM) is set to bolster governance ahead of the full enforcement of the Gig Workers Act 2025 (Act 872) on March 31.

The Human Resources Ministry (KESUMA) stated that the Act provides a clearer legal framework to protect gig worker welfare while ensuring sustainable sector growth.

Although SEGiM’s initial focus will be on digital platform workers, Act 872 offers comprehensive protection covering both platform-based and non-platform gig workers.

Key mechanisms under the Act include enhanced contract transparency, dispute resolution, and improved social security protection.

KESUMA is in its final preparation phase, which includes establishing a tripartite Gig Consultative Council.

The council will advise the government on minimum income rates, standards, and formulas for the gig sector.

It will also serve as a platform for dialogue and policy advice on ecosystem issues.

Chaired by KESUMA, the council will include government, worker, and contracting entity representatives.

Civil servant nominations will be coordinated through the Deputy Prime Minister’s Office to avoid functional overlap.

Act 872 mandates that platform providers register gig workers under the Self-Employment Social Security Act 2017.

Providers must also deduct contributions from worker earnings for the Social Security Organisation (PERKESO).

Implementation guidelines are being prepared to ensure platform providers comply with the Act’s provisions in an orderly manner.

“KESUMA will continue to work closely with SEGiM and all stakeholders,” the ministry’s statement added.

This collaboration aims to ensure the smooth implementation of Act 872 for the benefit of the entire gig economy ecosystem.