KESUMA clarifies how gig worker pay will be determined under new Gig Workers Act

• The RM1,700 minimum wage reflects Malaysia’s national minimum wage policy, while gig worker income is set through the Gig Consultative Council under the Gig Workers Act 2025.
• The council is a tripartite platform that will analyse market data, international best practices, and sector-specific factors before making recommendations to the government.
• KESUMA stressed that the council ensures evidence-based, fair, and sustainable income rates, and calls for its continued operation to protect gig workers.
  

The Ministry of Human Resources (KESUMA) has addressed recent questions raised by the Sahabat E Hailing Malaysia Action Group concerning remarks made by the Minister of Human Resources on 26 January 2026, particularly regarding minimum wage levels and income determination for gig workers.

In a statement on Thursday (29 January), KESUMA clarified that the RM1,700 minimum wage cited by the minister reflects the national minimum wage policy currently in effect. For gig workers, income determination is conducted through a structured consultation process under the Gig Workers Act 2025, which recognises the unique nature of gig work compared with conventional employment.

Central to this process is the Gig Consultative Council (MPG), a tripartite platform comprising government representatives, gig worker and contract entity representatives, and other experts familiar with the labour market and gig economy. The council will market data, reviews best practices locally and internationally, and develops recommendations for the government on minimum income rates.

KESUMA emphasised that this approach will ensure proposed rates are grounded in data, account for sector and location differences, and are fair to gig workers while remaining sustainable for the ecosystem. The ministry also highlighted that the minister’s call for refining the approach aligns with the need to discuss minimum income issues comprehensively through the MPG, an official consultation channel established by law.

"The enactment of the Gig Workers Act 2025 reflects the MADANI Government’s commitment to protecting gig workers by providing a structured, evidence-based mechanism to determine fair income," KESUMA said, adding that it will continue engaging all stakeholders to support gig worker wellbeing while allowing the council to execute its mandate effectively.