The Budget 2027 speech on 9 October 2026 announced a package for Malaysia's gig workers. The Government and Grab Holdings Limited have agreed to share the cost of a RM160 million package, to be implemented beginning 2027.
RM160 millionGig worker packageShared by the Government and Grab, from 2027
35%SOCSO matching incentive50% if the platform also contributes
RM600EPF matching a yearLifetime limit of RM6,000
Source: Ministry of Finance, Budget 2027 speech, 9 October 2026, paragraph 34.
Main points
- The speech estimated that 600 thousand Malaysians make their living as e-hailing and p-hailing drivers.
- The package will include a higher minimum income rate and help with vehicle maintenance and insurance costs and SOCSO contributions.
- A wider framework is still being negotiated and is expected to be finalised in early 2027.
What the gig worker package means for drivers and platforms
If you are an e-hailing or p-hailing worker
- The Government has agreed to a 35% matching incentive for SOCSO contributions, 50% if the platform also contributes.
- The speech says the Government will introduce EPF matching of up to RM600 a year for e-hailing and p-hailing drivers, with a lifetime limit of RM6,000.
- Check what you take home now with the take-home pay calculator.
If you are a platform or a self-employed person in a non-mandatory sector
- A platform that contributes towards a worker's SOCSO raises the Government match from 35% to 50%.
- The speech says the Government will introduce comprehensive regulation of the p-hailing sector under the Land Public Transport Agency (APAD) and the Commercial Vehicles Licensing Board (LPKP).
- More than 200 thousand self-employed people in 17 non-mandatory sectors are to get a 70% SOCSO matching incentive.
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Government SOCSO matching is 35% for gig workers and 70% for 17 sectors
Measures in the Budget 2027 gig worker package
| Measure | What the speech says |
|---|---|
| Package | RM160 million, shared by the Government and Grab, from 2027; a higher minimum income rate, help with vehicle maintenance and insurance, and SOCSO contributions |
| Income | Median net monthly income of e-hailing drivers expected to rise by up to RM227; p-hailing delivery workers expected to receive up to RM100 more a month |
| SOCSO | 35% matching incentive, 50% if platforms contribute; 70% for more than 200 thousand self-employed in 17 sectors |
| Tax relief | Relief to be expanded to mandatory LINDUNG Kendiri contributions; a further relief of up to RM150 for voluntary LINDUNG 24 Jam and LINDUNG Kendiri contributions |
| EPF | Matching incentive of up to RM600 a year, lifetime limit of RM6,000 |
| Financing | BSN and Agrobank to provide financing facilities totalling RM270 million for gig workers starting a business or buying a first home |
Package income gains and EPF matching over a year
| Measure | Monthly | Over twelve months |
|---|---|---|
| Rise in e-hailing median net income | Up to RM227 | Up to RM2,724 |
| Rise in p-hailing delivery workers' income | Up to RM100 | Up to RM1,200 |
| EPF matching incentive (e-hailing and p-hailing drivers) | Not stated | Up to RM600, lifetime limit RM6,000 |
Foundific calculations: the speech gives the monthly rises; the twelve-month income figures multiply them by 12. The EPF incentive is stated per year. At RM600 a year, the RM6,000 lifetime limit takes 10 years to reach.
What the speech does not say yet
- The start dates of the SOCSO and EPF matching incentives.
- What the matching percentages are applied to.
- The new minimum income rate, and who counts as an e-hailing or p-hailing worker.
- The 17 non-mandatory sectors.
The Gig Workers Consultative Council is negotiating a minimum income rate, an income formula and minimum social protection standards.
Where to follow the gig worker measures
- The Gig Workers Consultative Council process is expected to be finalised in early 2027; no earlier date is given.
- See what a worker keeps after EPF, SOCSO and tax with the take-home pay calculator.
- Read wage growth in Malaysia for median pay against inflation.
- The same speech also covered minimum pay for graduates; see the graduate starting salary post.
Related guides
Sources
Ministry of Finance, Budget 2027 speech
- Ministry of Finance, Budget 2027 speech (English translation) 9 October 2026, paragraph 34. The speech says the Bahasa Malaysia version prevails. Copy kept in data/my/mof/raw.
