KUALA LUMPUR, Oct 15 — Gig jobs have been a long-standing part of the labour market, encompassing roles like independent contractors and freelance writers and with the rise of the digital era, new employment types have emerged within this economy.
Digital platforms are at the forefront of this shift, transforming how gig work is accessed and executed. In Malaysia, the gig economy is classified as part of the non-standard or informal sector, characterised by its employment flexibility.
Pretty much what this means is that workers in this sector can set their own hours, locations, and schedules, providing significant autonomy.
Here are more things to know about the sector.
The gig economy consists of three key components:
- Independent workers who are paid per task or project.
- Consumers seeking specific services.
- Companies that facilitate connections between workers and consumers.
A recent Ipsos survey categorised Malaysian gig workers into two main groups: location-based and non-location-based platform workers.
Location-based workers perform tasks at designated physical locations through digital platforms.
Examples include ride-hailing, delivery services, and home maintenance tasks.
Non-location-based workers complete assignments online or remotely, often as freelancers, tutors, or content creators.
Like any other sector, there’s pros and cons to venturing into gig work.
Advantages:
- Financial independence: Skilled workers can earn more than traditional employees by taking on high-paying gigs.
- Flexibility and control: Gig workers can choose their own hours and projects, allowing for significant schedule autonomy.
- Entrepreneurial development: Workers build skills in personal branding and service marketing, enhancing their self-management abilities.
- Variety of opportunities: Workers can choose from numerous gigs across different sectors, expanding their skill sets.
Disadvantages:
- Dependence on market demand: Income can fluctuate due to changing market trends.
- Lack of benefits: Gig workers typically do not receive traditional employment benefits, requiring them to secure their own insurance and retirement plans.
- Job security: The absence of formal contracts can lead to sudden job loss.
- Uncertainty and instability: The unpredictable nature of gig work can hinder financial stability.
- Inconsistent income: Earnings can vary significantly, complicating financial planning.
As mentioned, there are diverse categories available for gig workers and will depend on your skill sets and how flexible you are, which is both a boon and a bane, and what you are offering. Here are some ideas to get you started:
- On-demand skilled work: Freelancers can offer services through online platforms, such as content writing, photography, and graphic design.
- Rental services: Individuals can earn supplemental income by renting out personal items or properties.
- Home services: These gigs involve tasks that improve residential spaces, requiring reliable transportation.
- Internet-based gigs: Flexible tasks like customer service or data entry are ideal for those balancing other commitments.
- Transportation and delivery services: Roles like ride-share or food delivery drivers are common and accessed via apps.
- Personal services: This sector includes roles like tutoring or massage therapy, often requiring specific skills or experience.
Government support
The government is starting to regulate aspects of the gig economy, focusing on location-based platforms.
In October 2019, the Transport Ministry introduced regulations for ride-hailing drivers, mandating PSV licences and vehicle inspections.
The Self-Employment Social Security Scheme (SESSS) offers coverage for self-employed individuals, addressing work-related injuries.
Additionally, the i-Saraan program allows self-employed individuals to contribute voluntarily to retirement funds, with incentives for contributions.
The Employees Provident Fund (EPF) collaborates with gig platforms like Grab and GoGet to enhance access to social protection schemes.
During the Covid-19 pandemic, Grab and EPF promoted awareness of i-Saraan to support gig workers.
GoGet introduced a "contribute as you earn” model for workers to save for retirement.
In June this year, the Human Resources Ministry announced plans to automatically include gig workers in the Social Security Organisation (Socso) upon registration with companies like Grab.
This proposal aims to enrol one million individuals in Socso by year-end.
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