SOCSO expands SPS Lindung to protect the self-employed under Grab Malaysia and foodpanda

The social security protection package, first announced in November 2020, provides self-employed personnel with benefits for disability, dependents, funeral care, and more.

To provide better welfare to self-employed persons (orang bekerja sendiri, or OBS) in courier services, Malaysia’s SOCSO, agency of the Ministry of Human Resources, has expanded its SPS Protection (or SPS Lindung) to those working under service providers Grab Malaysia and foodpanda.

According to SOCSO, this protection stands to benefit “more than 145,000 shippers of goods and food using motorcycles, bicycles or walking as well as delivery partners across the country” once Grab Malaysia and foodpanda register their shipping partners into the programme.

Under the umbrella of PenjanaGig, a government assistance initiative to ensure the social security and welfare of self-employed persons, SPS Protection is part of SOCSO’s Self-employed Social Security Scheme (Skim Keselamatan Sosial Pekerjaan Sendiri, or SKSPS).

With this protection plan, each shipper will be covered with:

• Social security protection (Plan Two), with a contribution amount of RM232.80 per year;
• Occupational disaster scheme (or Skim Bencana Pekerjaan);
• Medical benefits;
• Educational benefits, and
• Physical or vocational rehabilitation facilities

Related news: FAQs on Malaysia's PENJANAGig programme for gig workers

Sean Goh, Managing Director, Grab Malaysia, shared: “SPS Protection also completes the coverage of GrabInsure 24/7 insurance under the GrabBenefits programme, which aims to provide social protection and safety nets to the community of driver and dispatcher friends.

Shubham Saran, Head of Logistics, foodpanda, said, “We are very happy to work with SOCSO for this initiative. The safety and welfare of foodpanda delivery partners will and has always been our priority.”

According to SOCSO, Grab Malaysia and foodpanda are the first two out of 133 service providers in Malaysia that have entered this social security protection programme.

Dr. Mohammed Azman Bin Dato ’Aziz Mohammed, Chief Executive of SOCSO, therefore calls on all service provider platforms to follow in their footsteps in “further supporting the government’s efforts by ensuring that their shipping partners are registered, contributed and protected.”

On 22 July (Thursday), Malaysia’s Minister for Finance Tengku Zafrul, in a press citation, also shared that, as of 9 July 2021, there are already 64,773 shippers from Grab Malaysia and foodpanda registered to be part of this programme.

“The programme involving SOCSO and delivery services platforms is another strategic and proactive approach in realising the government's target to expand the social security net to include the self-employed, including delivery partners,” Minister Zafrul said.

Image / 123RF

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