The Malaysian government and Grab will jointly fund a RM160 million package covering income support, insurance and social security contributions for gig workers.

Prime Minister and Finance Minister Anwar Ibrahim announced the initiative during the tabling of Budget 2027 on 9 October.

Starting in 2027, the package will provide higher minimum income rates for e-hailing drivers and p-hailing delivery workers, along with assistance for vehicle maintenance, insurance and contributions to PERKESO.

The government expects monthly net income for e-hailing drivers at the median level to increase by up to RM227, while p-hailing delivery workers could see increases of up to RM100.

Around 600,000 Malaysians work as e-hailing drivers and p-hailing delivery workers, according to the Budget speech.

Beyond the Grab package, the government will offer a 35 percent matching incentive for PERKESO contributions by e-hailing and p-hailing workers.

A 70 percent matching incentive will also be available to more than 200,000 self-employed workers across 17 non-mandatory sectors.

Tax relief will be extended to compulsory contributions under PERKESO’s Skim Lindung Kendiri.

Additional relief of up to RM150 will be available for voluntary contributions under Skim Lindung 24 Jam and Skim Lindung Kendiri.

E-hailing and p-hailing workers will also be offered Employees Provident Fund (EPF) matching incentives of up to RM600 annually or RM6,000 over their lifetime.

Bank Simpanan Nasional (BSN) and Agrobank will provide RM270 million in financing to help gig workers start businesses and buy their first homes.

The Gig Consultative Council is working to establish minimum income rates, an income calculation formula and minimum social protection standards for gig workers.

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