Uber Malaysia welcomes Social Security Bill for the self-employed
KUCHING: Ridesharing company Uber Malaysia welcomes the introduction of the Self Employment Social Security Bill 2017 which was passed in Parliament on Thursday.
The new law seeks to safeguard the welfare of self- employed persons by providing them protection via Social Security Organisation (Socso).
According to Human Resources Minister Datuk Seri Richard Riot Jaem in a Bernama report, for a start the new law would be enforced on ‘selfemployed taxi drivers and e-hailing service providers including Uber and GrabCar’ before being extended to other self- employment sectors.
Under the Bill, each taxi driver and e-hailing service provider would be required to contribute 1.25 percent of their monthly income to Socso on a monthly basis.
Nevertheless it is important to clarify that Uber driver-partners are independent contractors and not employees of Uber, said Uber head of communications for Singapore and Malaysia, Leigh Wong.
“It’s important to note that the Self Employment Social Security Bill 2017 is designed for selfemployed individuals. The ‘ ehailing service provider’ stated in the Bill refers to driver-partners, not Uber.
“Hence, the ultimate decision should be left to driver-partners, since Uber cannot instruct them to make any contributions to Socso or do so on their behalf,” he told The Borneo Post when contacted yesterday.
Wong added that with the tabling of the new Bill in Parliament, the government has sent a clear message that ridesharing is here to stay.
“Uber Malaysia appreciates the positive regulatory momentum for ridesharing in large part due to the proactive support of the government.
“It (the government) recognises the positive contribution that ridesharing networks make to cities, drivers and riders.
“Uber will remain focused on helping riders and driverpartners enjoy the power of choice at the touch of a button in all the 12 cities we operate in today,” he said.
Meanwhile, one of Uber Malaysia’s driver-partners in Kuching, who requested anonymity, pointed out that the decision on whether to contribute to Socso is in the hands of the driver-partners themselves.
“It all comes down to how much money you are actually making from being an Uber driver.
“In Kuching, fares from picking up passengers are still very low. If you drive regularly, you may only rake in a few hundred ringgit, minus expenses for maintaining your vehicle and petrol.
“Making a contribution to Socso would actually cause you to make less as a driver-partner,” he said.