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Government to Implement 80% Incentive to p-hailing and e-hailing Contributors

Government to Implement 80% Incentive to p-hailing and e-hailing Contributors

November 19, 2021 Posted by michael.m Latest News, News
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BY: Michelle Liew

The government’s latest initiative requires individuals working in the field of p-hailing or e-hailing to register and contribute with the Social Security Organization (SOCSO) under the Self-Employment Social Security Scheme (SKSPS) is to safeguard their welfare and safety.

Deputy Minister of Human Resources, Datuk Awang Hashim stated that this is in line with the gazetting of the Self-Employment Social Security Regulations (Contribution Rates for Persons Carrying out Transportation Services and Delivery of Goods or Food) 2021 through PU (A) 372 dated 21 September 2021 and effective October 1.

“The p-hailing employee can choose a contribution plan of RM157.20 or RM 232.80 or RM442.80 or RM592.80 for a coverage period of one year as stipulated under the Self-Employment Social Security Act (Act 789).

“Self -employed people are required to contribute with a very low contribution rate divided into four categories, namely a minimum of RM157.20 per year and RM232.80 per year or RM442.40 per year or RM592.80 per year where the government will provide payment incentives or subsidies of around 70 percent on this year,” he explained.

He said this when answering a question from Datuk Salim Sharif (Jempol-BN) who asked the minister to state the efforts made to encourage contributions to the Socso protection scheme and the Employment Insurance System (SIP) for p-hailing and e-hailing.

He said it was rumoured that next year the government would provide an incentive of 80 per cent of the RM232.80 contribution rate that should be paid by the e-hailing or p-hailing employees themselves.

“This means that e-hailing or p-hailing workers only have to pay between RM20 to RM30 to get protection under the Socso scheme next year,” he said.

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Tags: e-hailinggig economyGovernmentincentives
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