Kuala lumpur: Platform companies that fail or refuse to pay the mandatory 10 percent social protection contribution for gig workers will face strict penalties, including fines of up to RM50,000 or a maximum prison sentence of two years. Deputy Minister of Human Resources Datuk Seri Abdul Rahman Mohamad stated these penalties are stipulated under Clause 108 of the Self-Employment Social Security Act 2017 (Act 789) to ensure the protection of all gig workers.

According to BERNAMA News Agency, Abdul Rahman detailed that upon conviction, the implicated individual may be sentenced to imprisonment of up to two years, a fine not exceeding RM50,000, or both. He addressed this during an oral question and answer session in the Dewan Negara, responding to a query from Senator Tuan Che Alias Hamid regarding the penalties or actions imposed on platform companies that neglect their obligation of paying the government-mandated 10 percent social security contribution for gig workers.

Meanwhile, in response to a question from Senator Datuk Ahmad Ibrahim about the total number of compound fines issued against companies defaulting on contributions to the Social Security Organisation (Perkeso) and the Employees Provident Fund (EPF), the Deputy Minister reported that, as of October, 4,564 prosecutions have been initiated for various employer-related offences. Out of this total, 1,276 cases, or 27.95 percent, involve offences by employers who failed to contribute to Perkeso, with arrears amounting to RM31.14 million. The government is not issuing compound notices to defaulting companies, opting instead for direct prosecution in court.