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Funding mechanism for gig workers being finalised

The government is finalising a funding mechanism for skills training and social protection for e-hailing and p-hailing gig workers.

PUTRAJAYA: The government is finalising a funding mechanism for skills training and social protection for e-hailing and p-hailing gig workers.

Minister of Human Resources Datuk Seri R Ramanan said the initiative will be announced in due course.

He said the move aligns with the Prime Minister’s 2026 New Year Address, which stressed ensuring economic development benefits workers directly.

An additional RM100 million allocation through the Skills Development Fund Corporation reflects the government’s attention to new economic realities.

“This measure clearly recognises the significant contribution of the gig sector,” Ramanan said in a statement.

He said the gig sector forms the backbone of daily mobility and the broader economy.

Ramanan also addressed tax compliance, supporting a temporary relaxation for genuine errors in income declaration.

He emphasised that the responsibility to pay taxes must be maintained to fund government aid programmes.

These programmes include Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah to enhance public welfare.

The Ministry affirmed its commitment to implementing other welfare initiatives from the address.

These include the disbursement of SARA beginning on Feb 9 and the first STR 2026 payment starting on Jan 20.

Other initiatives are allocations for upgrading educational facilities and a reduction in the service tax rate to 6%.

Ramanan said the ministry will ensure each initiative has a tangible, positive impact on workers and the public.

“This ministry remains committed to advancing policies grounded in welfare, inclusivity, and social justice,” he concluded.

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