One month after the Gig Workers Act 2025 came into force, GEM warns platform providers that technical constraints are no longer valid excuses for non-compliance.
PETALING JAYA: One month after the Gig Workers Act 2025 officially came into force, an e-hailing coalition has declared that technical constraints can no longer be used as a justification for delaying compliance with the new legislation.
Chief activist of the E-Hailing and P-Hailing Operators Coalition (GEM) Masrizal Mahidin, better known as “Jose Rizal” within the gig community—stated that the Social Security Organisation (Socso) is fully equipped to support the law’s implementation.
He stated that an Application Programming Interface (API)-based system is already in place to enable automatic contribution deductions.
The current mechanism mandates a contribution of 1.25% for every completed transaction.
Masrizal argued that the existence of this automated system proves that the hurdle is no longer about technical readiness, but rather the willingness of platform providers to comply.
“This means any excuse related to technical constraints can no longer be used as justification to delay implementation,” Masrizal said in a statement.
“The failure of some platform providers to promptly align their systems with these requirements raises serious questions about their commitment to the law and the welfare of gig workers. This is no longer a technical issue; it is a matter of compliance, integrity and industry responsibility,” he added.
Masrizal highlighted that the increasing frequency of accidents involving p-hailing and e-hailing drivers, coupled with a growing number of benefit recipients under self-employed social protection schemes, highlights the urgent need for sector-wide coverage.
He further insisted that all platform providers, including those not yet officially registered, must be compelled to perform deductions to ensure no worker is excluded from the law’s protection.
While the government initially adopted a “soft-landing” approach to allow companies to adjust, GEM believes the time for leniency has passed.
“A soft-landing approach in enforcement is no longer adequate if non-compliance continues. More decisive and punitive enforcement must be considered to ensure comprehensive compliance by all parties.
“Social security for gig workers is not optional. It is a right guaranteed by law and a trust that must be fulfilled,” Masrizal added.
The Gig Workers Act 2025 (Act 872) came into effect on March 31, establishing Malaysia’s first dedicated legal framework for the gig economy.
The Act governs service agreements, social security contributions, worker protection and dispute resolution.
