The process of determining the minimum income of gig workers will be implemented through structured negotiations under the framework of the Gig Workers Act 2025, according to the Ministry of Human Resources (MOHR).
The ministry explained that a specific framework is needed since the nature of gig work is different from conventional work and operates in a platform ecosystem that requires a more tailored approach.
The Gig Workers Act 2025 provides for the establishment of the Gig Consultative Council (MPG) as the main institutional mechanism to discuss and propose matters related to the minimum income of gig workers.
The MPG functions as a tripartite platform involving the government, representatives of gig workers and contracting entities, in addition to the participation of other stakeholders with expertise in the labour market and the gig economy.
The ministry stressed that the minimum wage rate of RM1,700 mentioned by the Minister of Human Resources, Datuk Seri R Ramanan, is only a reference to the national minimum wage policy currently in force, and is not a final determination of the minimum income of gig workers.
The statement was issued to clarify issues raised by the Malaysian E-Hailing Drivers Action Movement following the minister's speech, particularly regarding the income determination mechanism through the MPG.
The MPG is responsible for conducting research, analyzing market data, assessing sector and location variations, and examining best practices including at the international level before submitting proposals to the government.
This approach aims to ensure that the proposed minimum income rate is based on real data, fair to gig workers and sustainable for the entire platform ecosystem.
The Ministry stressed that any decision regarding minimum income must be thoroughly studied and discussed through the MPG's official channels to achieve a balanced, comprehensive and fact-based outcome.
The enactment of the Gig Workers Act 2025 reflects the government's commitment to strengthening the protection of gig workers, providing institutional consultation channels and ensuring that income issues are determined systematically.
MOHR informed that cooperation with all stakeholders will continue and urged that the MPG be given full space to carry out its functions in order to achieve a fair and sustainable resolution for the country's gig worker ecosystem.
