Malaysia’s Gig Workers Act 2025 expected to take effect in late March 2026
Summary
The Gig Workers Act 2025 is slated to come into force in late March 2026, the Ministry of Human Resources (KESUMA) announced. Minister Ramanan Ramakrishnan said KESUMA is also setting up a Gig Consultative Council to provide a dialogue platform for government, gig workers and platform providers, with major platforms such as Grab prioritised for membership.
Passed by the Dewan Rakyat in August 2025, the Act covers more than 1.2 million gig workers across p-hailing, e-hailing and digital freelancing. It is organised into 10 parts and 112 clauses focused on four main areas: an official definition of “gig worker”, income and payment regulations, dispute-resolution mechanisms, and social protection measures.
Key Points
- The Act is expected to take effect in late March 2026, according to KESUMA.
- KESUMA will form a Gig Consultative Council to bring together government, workers and platform providers; major platforms like Grab are prioritised.
- The law was passed by the Dewan Rakyat in August 2025 and targets protections for over 1.2 million gig workers.
- Core provisions include a legal definition of “gig worker”, rules on income/payment rates, dispute resolution processes and social protection measures.
- The Act is comprehensive: 10 parts and 112 clauses signalling a significant step in Malaysia’s labour reform for the gig economy.
Content summary
The article reports the official timing for the Gig Workers Act coming into force and the government’s next steps to operationalise it, notably the consultative council. It links the announcement to recent government engagement with platforms (eg. the rebranded Grab Partner Campus and GrabAcademy initiatives) intended to upskill gig workers in digital literacy, AI and financial management.
Context and relevance
This legislation is part of a broader global trend to regulate gig work and extend labour protections to those in platform-based roles. For HR teams, policymakers, platform operators and gig workers in Malaysia, the Act changes the compliance, pay and dispute landscape. It also signals that platforms may need to adjust contracts, payment models and dispute-handling processes to align with statutory requirements.
Why should I read this?
Quick and simple: if you employ, contract with or are a gig worker in Malaysia, this affects your pay, rights and how disputes get sorted. It’s the rulebook for a big chunk of the workforce — worth knowing now so you’re not caught off-guard in March.
Author’s take
Punchy and to the point: this is a significant labour reform. HR and legal teams should prioritise reviewing contracts and platform arrangements; platforms should get ready for engagement with the new consultative council and potential regulatory oversight.