Gig Workers’ Minimum Income To Be Determined Through Structured Consultation - KESUMA

PUTRAJAYA, Jan 27 (Bernama) -- The process of determining the minimum income for gig workers will be carried out through structured consultations under the Gig Workers Act 2025 framework, according to the Ministry of Human Resources (KESUMA).

It said the framework was created because the nature of gig work differs from conventional work and requires an approach better aligned with the structure and operating model of the platform ecosystem.

As such, KESUMA said the Gig Workers Act 2025 provides for the establishment of the Gig Consultative Council (MPG) as an institutional mechanism to discuss and propose matters related to gig workers’ minimum income.

"The minimum wage of RM1,700 mentioned by Human Resources Minister Datuk Seri R. Ramanan serves as a reference to the national minimum wage policy that is in force,” it said in a statement today.

The statement aims to clarify the issues raised by the Malaysian E-Hailing Drivers Action Movement regarding Ramanan's speech yesterday, particularly the references to the minimum wage and the mechanism for determining gig workers’ income through the MPG, so as to avoid any misunderstanding.

According to KESUMA, the MPG is a tripartite platform comprising government, gig workers and contract entity representatives, in addition to the National Wage Consultative Council (MPGN), which consists of others with knowledge of the job market and gig economy ecosystem. 

"This council conducts research, analyses market data, reviews best practices, including at the international level, and holds comprehensive discussions on the formula for minimum income before presenting the recommendations to the government,” the statement added.

KESUMA said the approach ensures that any proposed rates are based on actual data, take into account sectoral and location variations, and are fair to gig workers while remaining sustainable for the overall ecosystem.

"The Human Resources Minister's insistence that any approach needs to be finely reviewed aligns with the need to ensure the issue of gig workers’ minimum income is discussed through the MPG mechanism for a comprehensive, balanced and fact-based outcome.

"There is room for discussion through the MPG, which remains open and is an official channel created by law for that purpose,” it added.

According to KESUMA, the enactment of the Gig Workers Act 2025 demonstrates the MADANI Government's commitment to strengthening the protection of gig workers, providing structured consultation channels and ensuring that income issues are determined institutionally and based on evidence.

"KESUMA will continue to collaborate with all stakeholders to ensure the welfare of gig workers is enhanced through the mechanisms created, and urges that MPG be given the space to carry out its functions so that fair and sustainable resolutions can be achieved for the ecosystem of the country's gig workers,” it added. 

-- BERNAMA