KUALA LUMPUR, Dec 1 — Platform companies that fail or refuse to pay the mandatory 10 per cent social protection contribution for gig workers will face strict penalties, including fines of up to RM50,000 or a maximum prison sentence of two years.
Human Resources Deputy Minister Datuk Seri Abdul Rahman Mohamad said these penalties are stipulated under Clause 108 of the Self-Employment Social Security Act 2017 to ensure the protection of all gig workers.
"Upon conviction, the implicated individual may be sentenced to imprisonment of up to two years, a fine not exceeding RM50,000, or both," he said during the oral question-and-answer session in the Dewan Negara today.
Abdul Rahman was responding to Senator Tuan Che Alias Hamid's query, who sought clarification on the penalties or actions imposed on platform companies that fail to fulfil their responsibility of paying the government-mandated 10 per cent social security contribution for gig workers.
Meanwhile, responding to Senator Datuk Ahmad Ibrahim's query on the total number of compound fines issued against companies that default on contributions to the Social Security Organisation (Socso) and the Employees Provident Fund (EPF), he reported that, as of October, 4,564 prosecutions have been initiated for various employer-related offences.
"Of that total, 1,276 cases, or 27.95 per cent, involve offences by employers who failed to contribute to Socso, with arrears amounting to RM31.14 million.
"The government is not issuing compound notices to defaulting companies. We are taking strict action directly through prosecution in court," Abdul Rahman said.
