Govt switches to automatic social security registration for gig workers

Human resources minister Steven Sim said the government’s initiative is about ensuring that every gig worker has access to social security. (Bernama pic)

NIBONG TEBAL: The government will automatically add gig workers to its social security scheme for the self-employed (SKSPS) when they register with companies such as Grab or Foodpanda, human resources minister Steven Sim said today.

He said the government would scrap the current manual registration system and hopes that one million people will have joined the Social Security Organisation’s (Socso) SKSPS by the end of the year.

“This initiative is not just about numbers, it’s about ensuring that every self-employed worker has access to social security,” the Bukit Mertajam MP said.

“Our target is to have at least one million contributors by the end of the year. As of June, we had reached 650,000, an increase from last year’s 600,000,” he told reporters after meeting northern region Grab drivers at Jawi Golf Resort here.

Sim said Grab’s participation in the SKSPS programme was laudable as it paid a 10% contribution for its 180,000 drivers and delivery partners, a move he encouraged other platforms to emulate.

Currently, only a fraction of the self-employed workforce is registered despite various government incentives and subsidies, Socso said.

SKSPS, established under the Self-Employment Social Security Act 2017, offers medical, temporary and permanent disablement, and dependents’ benefits. The government covers 90% of the contribution costs, with the remaining 10% funded by companies.

Separately, Sim said a feasibility study on establishing a gig workers commission had been presented to the prime minister.

He said the commission aimed to improve gig workers’ welfare through better wages, enhanced social security, and effective grievance mechanisms.

He added that improvements may need amendments to current laws, as gig workers are not defined under the Employment Act 1955.

“The definition of gig workers requires a balanced approach. They do not want to be classified as conventional employees, but still need basic welfare protection. We are looking at regional and global best practices to develop a suitable framework,” he said.

The transport sector accounts for 36.7% of registrations for the SKSPS scheme to date, a Socso handout showed. This includes drivers and delivery staff in the passenger and goods transport sectors.

Sim said SKSPS provides critical protection against occupational hazards.

“The scheme covers self-employed workers against occupational diseases and accidents, providing cash benefits and medical treatment,” he said.

Socso said it had processed nearly 2,400 claims by June 21, paying out more than RM10.8 million in benefits across 20 sectors. The e-hailing and p-hailing sectors alone accounted for 631 claims worth RM3.3 million.

Socso also said its Bina Kerjaya initiative offered upskilling and reskilling programmes, providing training subsidies of up to RM4,000 and allowances of RM30 a day for 20 days to help workers transition into formal employment sectors.