Budget 2027: RM160 Million Co-Funded Package Announced For E-Hailing And P-Hailing Workers

KUALA LUMPUR, Oct 9 – The government and e-hailing platform Grab have agreed to co-fund an RM160 million package to boost net income and expand social welfare protection for gig workers starting next year.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the financial package during the presentation of Budget 2027 in the Dewan Rakyat on Friday afternoon, October 9, 2026.

The initiative covers higher minimum income rates, vehicle maintenance assistance, subsidized insurance coverage, and Social Security Organisation (Perkeso/Socso) contributions.

“This means median net income for e-hailing drivers is expected to increase by up to RM227 a month, while p-hailing delivery riders will see an increase of up to RM100 a month,” Anwar stated while tabling Budget 2027, themed “Reaching for the Sky, Rooted in the Ground.”

Gig Protection Framework, Socso Incentives, EPF Savings, and Financing Support

The co-funded package provides temporary support while formal legal frameworks for gig workers are finalized, alongside targeted savings incentives and micro-financing:

• Gig Consultative Council Negotiations: The temporary package precedes final recommendations from the Gig Consultative Council, which is establishing minimum income formulas and universal social protection standards set to take effect early next year for Malaysia’s 600,000 gig workers.
• Socso Matching Contributions: The government will provide a 35 per cent Socso matching contribution incentive to e-hailing and p-hailing workers, which increases to 50 per cent if platform operators co-cover contributions.
• Non-Mandatory Sectors: A 70 per cent Socso matching contribution incentive will be provided to over 200,000 self-employed individuals operating across 17 non-mandatory sectors.
• Tax Relief Adjustments: Socso tax relief will expand to cover mandatory contributions under the Self-Employment Social Security Scheme, alongside an additional tax relief of up to RM150 for voluntary contributions to 24-Hour Protection and Self-Employment Protection schemes.
• EPF Retirement Incentives: To build long-term savings, the government will offer an EPF matching contribution incentive of up to RM600 per year (capped at RM6,000 over a lifetime) for e-hailing drivers and delivery riders.
• Automatic EPF Registration: Every Malaysian citizen will be automatically registered as an EPF member upon reaching 18 years of age to encourage earlier retirement planning.
• Business and Housing Financing: Bank Simpanan Nasional (BSN) and Agrobank will allocate RM270 million in dedicated financing facilities for gig workers seeking to launch small businesses or purchase their first residential property.

The welfare package aims to provide economic stability and legal protection for Malaysia’s growing gig workforce.

–NMT