Gig worker income formula to be finalised by early 2027, HR minister says

1 November 2026 · News · People & operations

Human Resources Minister R. Ramanan told the Dewan Rakyat on 29 October that the income calculation mechanism and protection standards for gig workers under the Gig Workers Act 2025 will be finalised by early 2027. Companies that use platform or freelance workers should expect clearer minimum income rules next year and may want HR advisers to review how they engage and pay these workers.

What the minister said

Winding up the Budget 2027 policy-stage debate for his ministry on 29 October 2026, Human Resources Minister Datuk Seri R. Ramanan said the government will finalise the income calculation mechanism and minimum protection standards for gig workers by early 2027.

According to The Star, the minimum income formula is based on a study that included engagement sessions, focus groups and in-depth interviews with 1,962 platform workers, an analysis of 487,805 service transactions and benchmarking across 42 countries. The formula is to take account of inflation, the poverty line income, basic living costs, the median and minimum wage, and the operating costs workers carry, such as vehicle insurance, road tax and maintenance.

The minister also said that for gig workers registered on several platforms, PERKESO contributions would be coordinated through a single integrated account rather than deducted separately by each platform.

Related Budget 2027 measures

The budget includes a RM160 million support initiative for e-hailing and p-hailing riders, with the cost split between the government and platform companies, and Grab named as the pilot platform. The minister also repeated that employers must look for local workers through the MyFutureJobs portal before seeking foreign labour, which is limited to six main sectors.

On wages, he said the minimum wage will rise to RM2,000 a month from June 2027 and that MSMEs with annual sales below RM50 million would be given more time, with the increase phased in for them.

What it means for employers

Most companies are not gig platforms, but many use freelancers, riders or on-demand contractors through platforms or agencies. Until the formula is published, the practical step is to know which of your workers fall under the Gig Workers Act definition and who is responsible for their social security contributions. HR consultants and Employer of Record providers can help map these arrangements, and payroll providers will need to adjust once the rules are set.

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Sources

HR Ministry continues to prioritise job opportunities for locals, says Ramanan — The Star
Budget Speech 2027 (with tax measures appendices) — Ministry of Finance Malaysia

Editorial summary written by Best Malaysia Services. Not legal, tax or financial advice; check the original sources.