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THE IMPORTANCE OF FORMALISING INFORMAL EMPLOYMENT

The rise of the digital platform economy has led to an increase in informal gig workers, who
often lack fundamental employment rights and protection. This can lead to inequality
between formal and informal gig workers, and rising levels of vulnerability among informal
workers.
To address this issue, PERKESO has introduced the Bina Kerjaya initiative, which provides
informal gig workers with opportunities to enhance their qualifications and skills through
Recognition of Prior Experiential Learning (RPEL), micro-credentials or professional training.
PERKESO also offers financial allowances for a three-month duration, serving as
replacement of income for the participants.
In addition to Bina Kerjaya, PERKESO also offers employment services via MYFutureJobs,
which strives to connect informal gig workers with formal job opportunities and help them
in exploring career development options.
To date, more than 205,000 gig workers are protected under PERKESO and over 800
informal gig workers have registered for Bina Kerjaya. PERKESO is committed to increasing
access to both social protection and employment services for informal workers and
unemployed jobseekers. Ultimately, all workers deserve decent work and adequate social
protection.

Here are some important PERKESO’s initiatives:

  • The digital platform economy has led to an increase in informal gig workers.
  • Informal gig workers often lack fundamental employment rights and protection.
  • This can lead to inequality between formal and informal gig workers, and rising levels of
    vulnerability among informal workers.
  • PERKESO has introduced the Bina Kerjaya initiative to address this issue.
    Bina Kerjaya provides informal gig workers with opportunities to enhance their
    qualifications and skills.
  • PERKESO also offers financial allowances and employment services to informal gig
    workers.
  • PERKESO is committed to increasing access to both social protection and employment
    services for informal workers.

‘Whether they are formal employees, self-employed or platform gig workers,
all workers deserve decent work and adequate social protection,’
says Dr Mohammed Azman Aziz.

Source: https://www.thestar.com.my/news/nation/2023/07/29/why-it-matters-to-formalise-informal-employment

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