Budget 2027 brings a range of new measures aimed at improving income security and social protection for Malaysians working in the gig economy. Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, announced that the government and Grab will jointly fund a RM160 million support package for e-hailing drivers and p-hailing riders. The initiative is expected to increase the median net monthly income of e-hailing drivers by RM227 from early next year, while p-hailing riders are expected to earn an additional RM100 per month.
The package will go beyond income support alone, covering areas such as vehicle maintenance, insurance and Social Security Organisation contributions. It forms part of a broader effort to provide gig workers with more structured financial protection despite the flexible nature of their employment.
RM160 Million Package For Gig Workers
The government and Grab have agreed to jointly fund a RM160 million package focused on supporting workers in the e-hailing and p-hailing sectors. Part of the funding will be used to increase minimum income levels, while additional support will be directed towards costs that gig workers typically have to manage themselves.
These include vehicle maintenance and insurance, which can represent significant expenses for drivers and delivery riders. The package will also support contributions to the Social Security Organisation, better known as Socso or Perkeso, helping workers strengthen their protection against employment-related risks.
Median Income Expected To Increase From Early 2027
Under the initiative, the median net monthly income of e-hailing drivers is expected to rise by RM227. P-hailing riders, meanwhile, are expected to receive an increase of around RM100 per month. The improvements are expected to begin from early 2027.
The focus on net income is particularly relevant for gig workers because their gross earnings do not necessarily reflect what they actually take home. Fuel, maintenance, insurance and other operational costs can significantly reduce their final earnings. Providing additional support for some of those expenses could therefore have a broader effect beyond the headline monthly increase.
Minimum Gig Income Rates Still Being Finalised
Malaysia's Gig Consultative Council is currently working on determining minimum income rates for gig workers. Anwar said these rates are expected to be finalised in early 2027. Until that framework is ready, the RM160 million package will provide more immediate support for workers in the sector.
The introduction of minimum income rates could represent an important shift in how gig work is treated. While gig platforms traditionally operate around flexible and task-based earnings, a more structured income framework could give workers greater certainty over what they can expect to earn.
Government To Match Perkeso Contributions
Budget 2027 also includes additional support for Perkeso contributions. The government will provide a 35% matching contribution incentive for gig workers who make their own contributions. This is intended to encourage more workers to participate in social protection schemes even though they do not have conventional employer-employee arrangements.
The incentive will increase to 50% when platform companies also contribute towards the worker's Perkeso fund. This structure gives both workers and platform operators an incentive to participate, potentially expanding social security coverage across the gig workforce.
EPF Matching Contributions To Encourage Retirement Savings
The government is also introducing a matching Employees Provident Fund, or EPF, contribution to help gig workers build retirement savings. Eligible e-hailing and p-hailing workers can receive matching contributions of up to RM600 per year. The programme carries a lifetime maximum of RM6,000.
Retirement savings can be particularly challenging for gig workers because they do not automatically receive regular employer EPF contributions in the same way as salaried employees. The matching scheme is intended to encourage workers to contribute voluntarily while receiving additional government support.
RM270 Million Financing For Business And Home Ownership
Bank Simpanan Nasional and Agrobank will also make RM270 million available to support gig workers who want to build greater financial independence. The funding will help workers start their own businesses as well as purchase their first homes.
This adds another dimension to the government's support for gig workers. Instead of focusing solely on short-term income, the financing programme aims to help workers build longer-term assets or transition into entrepreneurship. Access to financing can be difficult for gig workers because their income may fluctuate from month to month, making traditional loan assessments more challenging.
More Than 600,000 Malaysians Work In E-Hailing And P-Hailing
Anwar said more than 600,000 Malaysians currently earn their living through e-hailing or p-hailing work. This makes the gig economy an important part of the country's labour market rather than a small or temporary employment category.
Many workers depend on these platforms as their main source of income, while others use gig work to supplement existing earnings. As the sector continues to grow, issues such as social protection, retirement savings and predictable income become increasingly important. Budget 2027 appears to place greater emphasis on bringing these workers into more structured support systems.
Self-Employed Workers In 17 Sectors Will Also Receive Support
The new social protection measures are not limited to e-hailing and p-hailing workers. The government will also provide a 70% matching Perkeso contribution incentive to more than 200,000 self-employed workers across 17 sectors where contributions are currently not mandatory.
This expands the reach of Budget 2027's social protection measures beyond platform-based gig work. Self-employed Malaysians often face similar challenges when it comes to insurance, accident protection and retirement planning because they do not have an employer automatically contributing on their behalf.
Building A Stronger Safety Net For Flexible Workers
The broader direction of these measures is to preserve the flexibility associated with gig and self-employed work while providing more of the protections traditionally associated with formal employment. Income support, Perkeso coverage, EPF savings and access to financing all address different financial risks that gig workers may face.
The success of the programme will depend on how the minimum income framework is eventually implemented and how widely workers and platform companies participate in the contribution schemes. Even so, the measures signal that the government increasingly views gig work as a permanent part of Malaysia's employment landscape.
Final Thoughts
Budget 2027 introduces substantial support for Malaysia's e-hailing and p-hailing workforce, led by a RM160 million package jointly funded by the government and Grab. The initiative is expected to lift median net monthly income by RM227 for e-hailing drivers and RM100 for p-hailing riders, while also supporting vehicle maintenance, insurance and Perkeso contributions.
Additional measures, including EPF matching of up to RM600 annually, stronger Perkeso incentives and RM270 million in financing through BSN and Agrobank, are designed to provide gig workers with greater long-term financial security. With more than 600,000 Malaysians relying on e-hailing and p-hailing work, the measures represent a significant step towards giving flexible workers stronger income protection and access to benefits traditionally associated with formal employment.
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