In further protecting deliver riders across the country, Grab Malaysia and Food Panda have now registered their riders for protection under the Social Security Organisation (“SOCSO”). Approximately 145,000 delivery riders nationwide were registered under the SPS Lindung Scheme, which ensures that the riders are registered, contributing, and also protected. This is a welcome change, as at end 2020, only 10% of delivery riders were registered with SOCSO.1
The SPS Lindung Scheme was passed by parliament during the announcement of the 2020 Budget, on 6th November 2021, with the aim of aiding and protecting those who are self-employed. Under this scheme, a contribution of RM232.80 would entitle a person for a year of protection by SOCSO. This is in line with new government initiatives to ensure that those working in the capacity of informal employment are accorded the same protection as those under formal employment. To date, SOCSO has noted that only 6.1% of 2.72 million self-employed individuals have actually registered for protection and urge those who are self-employed to register under the Self Employment Social Security Scheme to be able to have such protection.
More on this news: https://www.thestar.com.my/business/business-news/2021/07/17/delivery-riders-get-protection-from-socso
More on the SPS Lindung Scheme: https://eiscentre.perkeso.gov.my/sps-lindung/
- Lydia Nathan, ‘Only 10% Grab drivers protected by Socso’, The Malaysian Reserve, (10 December 2020), <https://themalaysianreserve.com/2020/12/10/only-10-grab-drivers-protected-by-socso/>.↩
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