KUALA LUMPUR: The move by the government to provide a matching grant for gig economy workers to contribute towards the Employees Provident Fund (EPF) via the i-Saraan scheme comes at the right time, taking into consideration developments in the country's workforce sector.
i-Saraan allows EPF members who are self-employed and do not earn a regular income to make voluntary contributions towards their retirement and at the same time, receive additional contribution from the government.
EPF chief executive officer Tunku Alizakri Alias said he hoped that the incentive will encourage self-employed workers to save in order to provide for their retirement.
"This year has been an unpredictable and challenging period for all. The Covid-19 pandemic has changed the landscape of the country's workforce.
"It is also encouraging to see many individuals who successfully benefited from the opportunities arising from this crisis.
"Gig platform workers in Malaysia, especially drivers and delivery operators, have become the backbone of the country's economic growth during the challenging month," he said in a statement today.
Earlier today, Prime Minister Tan Sri Muhyiddin Yassin announced that the government will provide a matching grant of up to RM50 million for gig economy platforms who contribute towards their gig workers' Social Security Organisation's (Socso) employment injury scheme and the EPF's i-Saraan scheme.
The initiative is among 40 outlined in the RM35 billion allocated under the Penjana Economic Recovery Plan.
"Previously, there was no formal mechanism to encourage people who are self-employed to save for their future," Tunku Alizakri said.
"With the rollout of the incentive, I hope it will promote and encourage more people among this group to save up for their retirement," he added.