KUALA LUMPUR: The Self Employment Social Security Bill 2017 that seeks to provide Social Security Organisation (Socso) protection to self-employed persons was passed by the Dewan Rakyat yesterday.
Human Resources Minister Richard Riot Jaem said for a start, the new law would be enforced to provide Socso protection to self-employed taxi drivers and e-hailing service providers, including Uber and Grab, before being extended to other self-employment sectors.
“Hopefully, one day it will be expanded to include other sectors,” he said when winding up the debate on the bill earlier.
Riot said that under the bill, each taxi driver and e-hailing service provider would be required to contribute 1.25% of their monthly income to Socso on a monthly basis.
“The period of protection is for 12 consecutive months with effect from the date and time the contribution was made,” he said.
The Bill also stated that any person who contravenes these regulations is committing an offence and was liable, upon conviction, to a fine not exceeding RM10,000 or a jail term not exceeding two years or both.
Explaining the penalty that drew strong opposition from some MPs debating the bill, Riot said the fine amount was actually small compared with the benefits to be received by the contributors or their next of kin later.