Budget 2027: Anwar announces RM160m joint package with Grab, matching incentives for Socso and EPF contributions

On October 9, Prime Minister and Finance Minister Anwar Ibrahim unveiled a RM160 million financial package under Budget 2027 during the presentation of the government's budget at the Dewan Rakyat. The joint initiative between the Malaysian government and e-hailing platform Grab aims to boost the net earnings of e-hailing and p-hailing workers and enhance their welfare.

The RM160 million package will cover a number of key areas, including raising the minimum income for e-hailing and p-hailing drivers, maintaining and insuring their vehicles, and contributing to the Social Security Organisation (Socso). Consequently, the median net income for e-hailing drivers will increase to RM227 per month and RM100 per month for p-hailing riders.

Anwar also revealed that the Gig Workers' Consultative Council will be working on finalizing the minimum wage rate, income formula, and standard minimum social protection for all gig workers by early 2027. Furthermore, Socso and EPF benefits will be matched by the government at 35 percent for e-hailing and p-hailing workers, with a potential increase to 50 percent if the respective platforms contribute more.

Additionally, the government will offer matching Socso incentives up to 70 percent for 200 self-employed individuals working in 17 non-mandatory sectors. To encourage retirement savings among e-hailing and p-hailing drivers, a Employees Provident Fund (EPF) matching contribution incentive of up to RM600 a year, totaling RM6,000 for life, will be provided.

Lastly, tax relief up to RM150 for voluntary Socso contributions under Skim Lindung 24 Jam dan Lindung Kendiri will be granted. Moreover, BSN and Agrobank will allocate RM270 million to support gig workers in starting businesses or purchasing their first homes.