Grab, govt join forces on RM160mil gig worker welfare package

KUALA LUMPUR: Grab Malaysia and the government have teamed up to establish an RM160 million initiative aimed at bolstering gig workers' earnings and improving their social protection. The 2027 Budget announcement reveals that e-hailing drivers' median monthly net income could rise by up to RM227, while p-hailing delivery riders might earn up to RM100 more.

In an effort to heighten earnings, both parties have suggested minimum baseline rates for e-hailing and p-hailing workers, set to take effect in 2027. Grab insists these proposed rates will elevate workers' take-home pay while keeping passenger fares constant during the framework's implementation. The Gig Consultative Council will continue discussions to finalize the rates.

The package also encompasses a government co-funded vehicle maintenance subsidy, starting with lubricants, which could trim operating costs for drivers and delivery riders by up to 35%. Grab plans to introduce an interim safety incentive to lower e-hailing insurance costs by up to 25% for drivers with strong safety scores. Additionally, the government and Grab will back mandatory contributions to the Social Security Organisation, with most active drivers and delivery riders receiving full contribution subsidies, and others receiving subsidies of up to 50%.

Grab's plan also involves partnering with the government to launch a dedicated first- and last-mile monthly transit pass, starting in the Klang Valley. This pass offers discounted e-hailing rides to and from train stations, enhancing public transport access while stimulating additional demand for drivers. Grab's executive director, Rashid Shukor, emphasized that improving the livelihoods of drivers and delivery partners has been a long-standing priority.

He stated that the collaboration with the government demonstrates Grab's commitment to advancing measures that can significantly benefit its partners while fostering a stronger, more sustainable gig economy.