SEGIM TO BOOST GIG ECONOMY GOVERNANCE AHEAD OF ACT 872 ENFORCEMENT- KESUMA

KUALA LUMPUR, March 8 (Bernama) -- The establishment of the Malaysian Gig Economy Commission (SEGiM) is expected to strengthen governance of the country’s gig economy ecosystem in line with the enforcement of the Gig Workers Act 2025 [Act 872], which is scheduled to come into full force on March 31.

The Human Resources Ministry (KESUMA) said although the scope of SEGiM will focus on gig workers operating through digital platforms in the initial stage, the protection introduced through Act 872 would be more comprehensive as it covers both platform-based gig workers and non-platform gig workers.

“The Act was introduced to provide a clearer legal framework to protect the welfare of gig workers while ensuring that the development of the gig economy sector grows in a sustainable, organised and fair manner,” KESUMA said in a statement tonight.

Through the Act, several key mechanisms will be introduced to strengthen protection for gig workers, including aspects of contract transparency, dispute resolution mechanisms and enhanced social security protection.

It said the ministry is currently in the final phase of preparations ahead of the enforcement of Act 872, including the establishment of the Gig Consultative Council as a tripartite platform bringing together representatives of the government, gig workers and contracting entities.

KESUMA said the council would play a role in advising and submitting recommendations to the government on minimum income rates, formulas and minimum standards to be applied in the gig sector, while serving as a platform for dialogue, negotiations and policy advice on issues involving the sector’s ecosystem.

It said the Gig Consultative Council will be chaired by the ministry as the lead agency in policy development and the implementation of Act 872, with nominations of civil servant representatives to be submitted through the Deputy Prime Minister’s Office to ensure coordination and avoiding overlapping functions.

According to the statement, Act 872 will also strengthen social security protection for gig workers as platform providers will be required to ensure gig workers are registered under the Self-Employment Social Security Act 2017 [Act 789]. 

“Platform providers will also need to make deductions from gig workers’ earnings for contributions to the social security scheme through the Social Security Organisation (PERKESO),” it said. 

At the same time, implementation guidelines are being prepared for platform providers to ensure compliance with the provisions of Act 872 can be carried out in an orderly and consistent manner.

“KESUMA will continue to work closely with SEGiM and all stakeholders, including industry players, gig worker representatives and government agencies, to ensure the smooth implementation of Act 872 and that it benefits the overall ecosystem of the country’s gig economy,” the statement added.

-- BERNAMA