KUCHING: The proposed standardisation of the 1.25 per cent Social Security Organisation (SOCSO) contribution across all e-hailing and p-hailing platforms aims to enhance financial security for Malaysia’s gig workers.
Universiti Malaysia Sarawak (Unimas) economics lecturer Nor Afiza Abu Bakar said the move is a crucial step in addressing the lack of social protection in the gig economy.
Currently, only 26 per cent of Malaysia’s 1.16 million gig workers are enrolled in the Self-Employment Social Security Scheme (SKSPS).
Standardising contributions, she said, could close this gap by extending benefits such as medical coverage and financial aid for work-related injuries.
“This initiative helps bridge the protection gap, promoting a more inclusive safety net for gig workers.
“If implemented well, it can reduce financial instability and enhance their economic security,” she told Sarawak Tribune.
She added that a uniform contribution rate would also simplify financial planning for gig workers managing multiple jobs, ensuring clearer income forecasting and budgeting.
However, she cautioned that the policy must address concerns over its impact on gig workers’ take-home pay and whether platforms will pass on the costs.
Nor Afiza said the proposal reflects a broader shift toward adapting social security frameworks to modern labour trends, as seen in other countries.
“In South Korea, employment insurance was extended to platform workers in 2022, enrolling 250,000 new workers within months.
“Similarly, Mexico, Chile, Spain and China have implemented measures to enhance social security for gig workers,” she said.
She believed a standardised SOCSO rate could strengthen Malaysia’s labour market by improving financial and health security, boosting productivity, and reducing reliance on public assistance.
“While effective implementation remains key, this move strikes a balance between gig economy flexibility and essential worker protections.
“Collaboration between the government, platform operators and workers will be crucial for its success,” she added.
