New law to protect e-hailing drivers, delivery riders in Malaysia, including EPF, medical coverage – Zahid

New law to protect e-hailing drivers, delivery riders in Malaysia, including EPF, medical coverage – Zahid

The government is set to introduce new legislation to protect the safety and welfare of gig workers such as ride-hailing drivers and delivery riders, said deputy prime minister Ahmad Zahid Hamidi. According to a Bernama report, the law will provide financial and medical protections, including contributions to the Employee Provident Fund (EPF).

Zahid said the proposed bill will be tabled by the human resources ministry (Kesuma) during the current Dewan Rakyat session, as soon as debates on the Supply Bill 2025 have concluded. The move shows the government stands in solidarity with the 1.16 million gig workers nationwide, he added.

“This act will introduce a safety net for gig workers, ensuring comprehensive protection that includes not only contributions to the EPF but also coverage from the Social Security Organisation (Perkeso), as well as provisions for medical treatment costs,” he said, adding that Malaysia will be one of the first countries in the world to enact specific gig worker laws.

New law to protect e-hailing drivers, delivery riders in Malaysia, including EPF, medical coverage – Zahid

Zahid acknowledged that covering medical treatment costs in particular could have financial implications but said that the protection of gig workers’ welfare was deemed necessary. “We will thoroughly discuss this matter with the ministry of finance, the Kesuma and the Malaysian Gig and Labour Union Secretariat who will give its feedback after consultations are done with universities, Universiti Malaya (UM) in particular. UM has provided the secretariat and Kesuma with advisory services, including legal insights,” he said.

In terms of the differences between the new legislation and existing labour laws, Zahid said that current laws do not specifically address the latest gig economy developments. “Based on a recommendation from the human resources minister, the cabinet has decided that a dedicated act is essential to ensure that this legislation does not conflict with existing laws,” he added.

Related to this news, Zahid said the Malaysian Gig and Labour Union Secretariat has proposed extending Perkeso’s protection to cover gig workers outside their official working hours. The New Straits Times has separately reported that the proposed protection for gig workers will apply 24 hours a day, as requested by those in the sector.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • what a joke! we are the ones that needed protection from them. they are reckless, lawless and fearless.

    Like or Dislike: Thumb up 57 Thumb down 13
  • LoneOpinion on Oct 29, 2024 at 2:51 pm

    Let them Follow traffic rules first..majority are just infuriating to deal with…G treating them like a voting bloc…closing an eye…

    Like or Dislike: Thumb up 38 Thumb down 4
  • newme on Oct 29, 2024 at 5:17 pm

    They demand flexible working hour with benefits of a full time employee.

    What a demanding job.

    Like or Dislike: Thumb up 0 Thumb down 5
  • E hailing Truth!! on Oct 29, 2024 at 7:05 pm

    i think UG dont understand the problem facing e hailing, the main issue is low fare after crazy famous ehailing platform 20% commission deduction. Now with a new scheme, they increase the deduction to 25%!!! And their abnormal fare most of the times very cheap, can get as low as Rm3.20 after deduction for driver!Ehailing insurance getting ridiculous high on top of other expenses!,Bcoz of this, driver need to chase time , incentive & risk themselfs. If driver earn enough, they can put in epf, got $ to buy medical insurance, saving, etc. Now they cant even hv enough $ to maintain their car. Reduce the platform commision to 10%, put a based rate of rm8. driver earn more, passenger fare also affordable !! Plz dont just look at ehailing-. It bring spillover effect to other industries ie workshop-f&b-tourism-insurance-automotive-transportation.

    Like or Dislike: Thumb up 32 Thumb down 1
    • what to do? western minded uber fail to compete here, wait gomen approve chinese didi come here and kill off grab

      Like or Dislike: Thumb up 1 Thumb down 0
  • Hmmmm on Oct 30, 2024 at 7:35 am

    I totally agree with socso cobtribution and medical contribution.
    On EPF, its a double edge sword really. None of them will continue to ride till at least 55 to enjoy withdrawal, none of them can have significant ‘durian runtuh’ at 55. Its a way of some party to hold some fund for certain period.

    Like or Dislike: Thumb up 2 Thumb down 1
  • inb4 Company: “They are technically our local partners, not employee hence not eligible for these. “

    Like or Dislike: Thumb up 5 Thumb down 1
  • Good view on Nov 01, 2024 at 6:57 am

    It’s going to cost more to use their services. The problem with Madani government and previous ones is they don’t think of helping the businessman to make money. Instead they make it even harder for businesses to survive. Company close down you end up with zero salary not minimum RM1700. At a time when businesses are struggling to survive you need to help the towkey but in our local politics that is a sin. Must look like Robbing Hook. To those workers be glad you have a job. This is only possible if the towkey can make a profit. Stupid Robbing Hook politicians will make you jobless.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Good view on Nov 01, 2024 at 7:02 am

    Can’t comment

    Like or Dislike: Thumb up 0 Thumb down 0
 

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