The Gig Workers Bill 2025, tabled in Parliament on Aug 26, is being described as a landmark step towards protecting more than 1.2 million Malaysians who depend on gig work for their livelihoods.

It introduces legal recognition for gig workers, a framework for fair pay, mandatory social protection, and a tribunal to resolve disputes.

PERKESO data show that in 2024, only 25.4 percent of gig workers contributed to social protection under Act 789, yet they represented 28.6 percent of all benefit recipients in the same period. Officials say this imbalance underscores the urgency to strengthen protections for workers in the informal economy.

Closing a coverage gap

“These figures highlight the urgent need for critical social protection for the gig community. The tabling of the Gig Workers Bill 2025 marks a historic milestone, aligned with the LINDUNG rebranding agenda to safeguard the rights, welfare, and dignity of gig workers, who are among the key drivers of Malaysia’s digital economy,” PERKESO said in a statement.

Once gazetted, the new legal framework will grant gig workers protection equal to that of formal employees, in line with the principle of karamah insaniah, which upholds human dignity regardless of job type.

Human Resources Minister Steven Sim in Parliament said the bill was drafted following more than 40 consultation sessions with workers, platform operators, unions, NGOs, and academics.

An additional 500 responses were collected through online submissions, ensuring diverse input shaped the proposed law.

Part of a broader social security push

The bill is closely linked to PERKESO’s recent LINDUNG rebranding, launched on Aug 22, which refreshed its social security schemes with clearer names and wider outreach.

Under the new structure, gig workers will gain access to eight categories of benefits, including rehabilitation services and income replacement in cases of work-related accidents.

The bill will undergo further parliamentary readings in the current session. If passed, Malaysia would join a small group of countries that have formally legislated protections for gig workers, reinforcing their role as vital contributors to the nation’s digital economy.

This Social Security series is in collaboration with PERKESO.