Platform companies face up to two years in jail or RM50,000 fines for failing to pay mandatory social security contributions for gig workers.
KUALA LUMPUR: Platform companies that fail to pay the mandatory 10% social protection contribution for gig workers will face strict penalties.
Deputy Minister of Human Resources Datuk Seri Abdul Rahman Mohamad said these penalties are stipulated under Clause 108 of the Self-Employment Social Security Act 2017.
“Upon conviction, the implicated individual may be sentenced to imprisonment of up to two years, a fine not exceeding RM50,000, or both,” he said in the Dewan Negara today.
He was responding to a question from Senator Tuan Che Alias Hamid on penalties for non-compliant companies.
Separately, Abdul Rahman addressed a question on defaulting employers from Senator Datuk Ahmad Ibrahim.
He reported that 4,564 prosecutions have been initiated for various employer-related offences as of October.
Of these, 1,276 cases involve employers who failed to contribute to the Social Security Organisation (Perkeso).
Arrears in these cases amount to RM31.14 million.
“The government is not issuing compound notices to defaulting companies,” he said.
“We are taking strict action directly through prosecution in court.”
