Budget 2027: Grab aims to raise gig workers’ earnings without increasing fares

The government and e-hailing platform provider Grab have agreed to jointly fund a RM160 million package starting next year to increase net earnings and improve the welfare of e-hailing drivers and p-hailing delivery workers. — Bernama pic

First Published: Saturday, 10 Oct 2026 9:43 AM MYT

KUALA LUMPUR, Oct 10 — Grab aims to increase the earnings of e-hailing drivers and p-hailing delivery partners from 2027 without affecting passenger fares under a proposed minimum earnings framework.

In a statement yesterday, Grab said an agreement in principle had been reached on a proposed minimum baseline rate for e-hailing and p-hailing workers.

“The Gig Consultative Council will continue its deliberations to determine the final rates,” it said.

Grab’s statement follows Prime Minister Datuk Seri Anwar Ibrahim’s announcement during the tabling of Budget 2027 in the Dewan Rakyat yesterday that the government and Grab would jointly fund a RM160 million package to boost the earnings and welfare of gig workers.

Under the package, median monthly net income for e-hailing drivers is expected to increase by up to RM227, while p-hailing delivery partners’ income is expected to rise by up to RM100.

Grab said other initiatives include a vehicle maintenance subsidy, starting with lubricants, to reduce operating costs by up to 35 per cent, as well as an interim safety incentive to help eligible e-hailing drivers cut regulatory insurance costs by up to 25 per cent.

The company also said its most active drivers and delivery partners would receive 100 per cent coverage for mandatory Social Security Organisation (SOCSO) contributions, while other partners would receive contribution subsidies of up to 50 per cent.

Grab said it will also work with the government to introduce a monthly transit pass offering discounted e-hailing rides to and from train stations, starting in the Klang Valley.

“By offering commuters discounted e-hailing rides to and from train stations, the initiative aims to improve access to fixed route public transportation while generating additional demand for driver-partners,” it said.

Grab executive director Rashid Shukor said improving the livelihoods of its driver and delivery partners remained a priority for the company.

“We understand that every ringgit matters, whether it comes from additional earning opportunities or savings on the everyday costs of working.

“In collaboration with the government, we are taking the lead in the industry to advance measures that can make a meaningful difference to our partners, while building a stronger and more sustainable gig economy,” he added. — Bernama