Malaysia Enforces Gig Workers Act 2025, Bringing Legal Protection to 1.64 Million Workers: Minister Datuk Seri R. Ramanan

PUTRAJAYA: Malaysia has officially enforced the Gig Workers Act 2025 (Act 872) today, marking a major step toward strengthening legal protections for more than 1.64 million gig workers across the country.

Human Resources Minister Datuk Seri R. Ramanan said the new law addresses long-standing gaps in worker protection within the rapidly growing gig economy, which includes both platform-based and non-platform-based work.

“The Act reflects the government’s commitment to safeguarding gig workers, who are a vital pillar of the digital economy,” he said during a press conference at Menara PERKESO.

Under the Act, gig workers are defined as Malaysian citizens or permanent residents engaged in service agreements with contracting entities either through digital platforms or independently and who receive payment for their services. This includes sectors such as e-hailing and p-hailing, as well as non-platform professions like acting, music, and journalism.

The legislation introduces a comprehensive framework aimed at ensuring fair treatment and improved welfare. Key provisions include transparency in service agreements, income protection measures, and mandatory social security coverage through PERKESO. It also establishes formal dispute resolution channels via the Industrial Relations Department and a newly created Gig Workers Tribunal.

Workers can lodge complaints related to payment issues, account suspensions, or contract breaches through the Human Resources Ministry’s e-Aduan system or at its agencies nationwide. Authorities aim to resolve cases within 21 working days, with progress tracking made available to complainants.

To further strengthen governance, the Act provides for the establishment of a Gig Advisory Council comprising 26 representatives from government, industry, and worker groups. The council, expected to begin operations on April 1, will advise on policies including minimum income standards and sector-specific guidelines.

In addition, the Malaysian Gig Economy Commission (SEGiM) has been formed as the regulatory body responsible for overseeing the sector and ensuring effective implementation of the law.

Ramanan emphasized that while the Act enhances protection, it preserves the flexibility that defines gig work and will not disrupt the existing ecosystem.

As part of the rollout, gig platform providers have been given between three and six months to integrate their systems with PERKESO. This will enable automatic deductions for mandatory social security contributions, set at 1.25% per completed task or transaction, covering workplace injuries and occupational diseases.

The government has pledged to closely monitor compliance while allowing industry players time to adapt to the new requirements. Further details on enforcement mechanisms and regulations are expected to be announced through upcoming guidelines and subsidiary legislation.

The enforcement of the Gig Workers Act 2025 signals Malaysia’s effort to balance innovation in the digital economy with stronger worker protections, ensuring sustainable growth in the sector.