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With enforcement underway, the Act sets out clearer protections, governance structures, and dispute mechanisms for over 1mn gig workers across sectors.
Malaysia has begun enforcing the Gig Workers Act 2025 [Act 872] as of Tuesday (31 March 2026), marking a policy shift in strengthening governance and improving protections for workers in the country’s growing gig economy.
The move signals a broader effort to build a more structured and inclusive employment ecosystem, in line with the rapid expansion of the digital economy. The Act is expected to benefit more than 1.64mn gig workers by introducing a comprehensive legal framework.
This includes provisions on transparency of service agreements, certainty of payment, protection from discrimination, and access to a more structured dispute resolution mechanism through the Malaysian Industrial Relations Department and the Gig Workers Tribunal.
In addition, social security protection through Social Security Organisation (SOCSO), as well as occupational safety and health measures, have been strengthened, while maintaining the flexibility that underpins gig work.
The Ministry of Human Resources (KESUMA) said the introduction of Act 872 also positions Malaysia among the earlier countries in the region to implement dedicated legislation for the gig sector, potentially serving as a reference point for similar policies at regional and global levels.
Under the Act, gig workers are defined inclusively to include individuals who provide services through digital platforms as well as those working independently without platforms. This ensures that protections extend across sectors such as creative, professional, and freelance services.
To strengthen governance, the Gig Consultative Council (MPGIG) has been established as a tripartite mechanism involving government representatives, gig workers, and contracting entities. The council will advise the government on minimum income rates and sector-related standards, based on current data and market needs.
A total of 26 MPGIG members from various backgrounds and experiences in the gig economy industry have been appointed, effective yesterday (1 April 2026). The first meeting of the council, scheduled for 3 April 2026, will focus on discussions related to gig worker income rates as one of the main agendas in the initial phase of the Act’s implementation.
At the same time, the Malaysian Gig Economy Commission (SEGIM) has been established as a single coordinating body to oversee policy implementation, industry monitoring, and the development of the gig ecosystem in a more integrated, structured, and effective manner. [Read more about SEGIM here.]
According to KESUMA, the Act also introduces a more systematic complaints management system through KESUMA's eComplaints platform. This allows gig workers to submit complaints related to payments, account suspension, or breaches of agreement.
Authorities have set a target for complaints to be resolved within a maximum of 21 working days, depending on the type and complexity of each case, providing a clearer avenue for dispute resolution.
Enforcement will be carried out in an integrated manner by relevant agencies, including the Department of Manpower, the Department of Occupational Safety and Health, and SOCSO. KESUMA affirmed that strict action will be taken against any party that fails to comply with the provisions of the law.
Overall, the move is said to reflect an approach to balancing the growth of the digital economy with the need to safeguard worker welfare and protection.
ALSO READ: Gig Workers Act 2025: What employers must get right as enforcement kicks in on 31 March
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