2027 Budget: Financial aid, welfare initiatives bring relief to gig workers

BUDGET 2027: FINANCIAL AID, WELFARE INITIATIVES BRING RELIEF TO GIG WORKERS

Bernama

MELAKA: E-hailing drivers and delivery riders have welcomed the welfare measures announced under 2027 Budget, saying the initiatives will ease operating costs, improve earnings and strengthen social protection for gig workers.

Food delivery rider Mohd Iskandar Demali, 27, said assistance with vehicle maintenance and insurance coverage would help reduce the financial burden of working in the sector.

Having worked full-time around Banda Hilir for the past two years, he said the measures showed the government's awareness of the challenges faced by gig workers amid rising living costs.

People may think delivery riders earn a good income, but we have to bear various expenses, particularly vehicle maintenance.

"I spend more than eight hours on the road every day delivering food, so my motorcycle needs frequent servicing to ensure my safety and prevent breakdowns," he told Bernama.

E-hailing driver Sulaiman Ibrahim, 44, welcomed the government's initiative, which was expected to raise drivers' median monthly net income by up to RM227.

The single father of three children aged between three and 11 said vehicle-related expenses and daily living costs often took a significant share of his earnings.

"With the expected increase in net income, I hope to manage my family's expenses better and save consistently for my children's future," said Sulaiman, who has worked in the sector for five years.

The view was also shared by another food delivery rider, Mohd Kusyairi Jamaluddin, 30, who described the matching contribution incentives for the Social Security Organisation (Socso) and Employees Provident Fund (EPF) as an important safety net.

"Food delivery work carries a high risk of accidents because we spend long hours on the road and have to fulfil orders quickly. I am very grateful for these measures," said the rider who has worked in the gig sector for four years.

When tabling 2027 Budget in Parliament on Oct 9, Prime Minister Datuk Seri Anwar Ibrahim announced that the government and ride-hailing platform provider Grab would jointly fund a RM160 million package to improve gig workers' welfare from next year.

Under the initiative, median monthly net income is expected to rise by up to RM227 for e-hailing drivers and RM100 for delivery riders.

The package also includes vehicle maintenance assistance, insurance coverage, and Socso contributions.

The government is also offering matching EPF contributions of up to RM600 annually, capped at RM6,000 over a lifetime, to encourage retirement savings among gig workers.