Malaysia steps up protection for self-employed and gig workers

From 2022, the bulk of the cost of public insurance costs for the self-employed and gig workers will be paid by the state.
By: | November 19, 2021

The Malaysian government will be subsidising 80% of the insurance cost under the Social Security Organisation (Socso) for gig workers and the self-employed from 2022 onwards.

“The government has agreed to subsidise up to 80% of RM238 insurance cost for gig workers under the scheme. This means that those under the scheme will only have to pay the remainder with some only having to pay about RM20,” said Deputy Human Resources Minister  Datuk Awang Hashim, according to The Star.

The deputy minister added that the insurance scheme would not only offer protection to the workers alone but also benefit their spouses and children. “Spouses will continue to receive pension benefits for the rest of their lives while the education needs of their children will be covered till they reach 18,”  he said.

The government currently contributes 70% to Socso’s Self-Employed Social Security Scheme for registered self-employed and gig workers, a sum of about RM163 (US$39) to RM232.80 (US$56) per year for protection under the scheme.

READ: Amendments to Malaysia’s Employment Act “falls short”

Earlier, the deputy minister said that it was mandatory for all gig delivery workers to register themselves under the Socso protection scheme as of October 1 this year.