Jakarta:First paragraph of the news story.

According to BERNAMA News Agency, the government and Grab have agreed to jointly fund a RM160 million package aimed at increasing the net income and improving the welfare of e-hailing and p-hailing workers starting in 2027, as announced by Prime Minister Datuk Seri Anwar Ibrahim.

The package includes measures such as increased minimum earnings for these workers, assistance with vehicle maintenance and insurance costs, and contributions to the Social Security Organization (SOCSO). Anwar stated that e-hailing drivers at the median level are expected to see their net income rise by up to RM227 per month, while p-hailing delivery riders could experience an increase of up to RM100 per month.

Additionally, the government has approved a 35 percent SOCSO matching contribution incentive for e-hailing and p-hailing workers. This incentive could increase to 50 percent if the platform company also contributes to the workers' SOCSO.

Beyond these sectors, the government is offering a 70 percent SOCSO matching contribution incentive to over 200,000 self-employed individuals across 17 non-mandatory sectors. The SOCSO tax relief has also been expanded to include mandatory contributions to the Lindung Kendiri Scheme, with an additional tax relief of up to RM150 available for voluntary contributions to the Skim Lindung 24 Jam and Lindung Kendiri schemes.

To promote retirement savings among e-hailing and p-hailing drivers, the government is providing an Employees Provident Fund (EPF) matching contribution incentive of up to RM600 per year or RM6,000 over a lifetime. Furthermore, BSN and Agrobank are earmarking RM270 million to support gig workers in starting businesses and purchasing their first homes.

The Gig Consultative Council is also working on finalizing discussions on minimum income rates, income formulas, and minimum social protection standards for gig workers, with a conclusion expected in early 2027.