The 1.25% Coming Out of Every Job: What the Gig Workers Act Actually Gives Malaysian Riders and Drivers
Since the Gig Workers Act 2025 came into force on 31 March 2026, platforms in Malaysia have been deducting 1.25 per cent of every completed job from riders and drivers and paying it to PERKESO. Most people affected know the deduction is there. Far fewer know what it buys — or that the same Act gives them rights that have nothing to do with money. We read PERKESO's own FAQ, issued the day the Act took effect, and the Bill text tabled in the Dewan Rakyat. The deduction funds Plan 1 of the Self-Employment Social Security Scheme at RM157.20 a year, which covers free treatment at government hospitals, 80 per cent of insured income during sick leave from a work accident, RM500 a month if you need constant care and a RM3,000 funeral benefit. The provisions almost nobody talks about are elsewhere: a platform can suspend your account for a maximum of 14 days while it investigates, must tell you in writing, and if it finds no reason to deactivate you it must reinstate you and pay half your average daily income for the days you were locked out. Here is the full picture, with the figures.
