Experts urge automatic EPF contributions for gig workers by 2030

Pension experts have renewed calls for automatic Employee Provident Fund (EPF) contributions to be extended to gig economy workers, citing the need for simplified mechanisms to boost retirement savings in a rapidly evolving employment landscape.

Ahmed Razman Abdul Latiff, a senior official, stressed that the current voluntary contribution approach requires streamlining through collaboration with digital platforms commonly used by gig workers. He pointed to ride-hailing and delivery services as key platforms where contribution systems could be seamlessly integrated.

The push for automatic contributions reflects growing concerns about retirement security among Malaysia's expanding gig workforce, which has accelerated significantly in recent years. Experts argue that integrated digital payment systems would remove administrative barriers and encourage consistent savings habits among workers who typically lack traditional employment structures.

Projections suggest that automatic contributions implemented through such platforms could enable gig workers to accumulate retirement savings approaching RM390,000 by 2030. Officials are actively exploring partnerships with digital service providers to develop frameworks that balance worker convenience with regulatory compliance and fund management requirements.

The initiative represents a broader effort to extend formal retirement protections to workers in the informal economy, addressing a critical gap in Malaysia's social security system as the nature of work continues to shift.