We helped bosses to prevent layoffs, says deputy minister

We helped bosses to prevent layoffs, says deputy minister

Awang Hashim explains rationale behind Socso scheme for gig workers fully borne by the government.

More than 145,000 delivery riders are getting social security protection, with the government bearing the full cost.
KUALA LUMPUR:
There was a need to help employers who were also affected by the Covid-19 pandemic, deputy human resources minister Awang Hashim said, in explaining Putrajaya’s decision to subsidise social security organisation (Socso) contributions for gig workers.

He said businesses had been experiencing a decline during the outbreak.

“So, we needed to help both employers and employees to ensure there were no retrenchments,” he told the Dewan Rakyat today.

“If we don’t use government funds, whose money will we use?”

Awang said this in response to a supplementary question by Syed Saddiq Syed Abdul Rahman (Ind-Muar), who wanted to know why the government was using public funds to subsidise the scheme for gig workers.

The former youth and sports minister said the government was subsidising the “big towkays” (bosses) by doing so, noting that in other countries, the responsibility fell on the employers.

Awang said the government would be able to collect more taxes from these businesses once the economy recovers to help the “rakyat and employers”.

In July, Socso said more than 145,000 delivery riders would obtain social security protection under the SPS-Lindung scheme, with the government bearing the full cost.

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