THE RM1,500 minimum wage proposed by the government is not enticing enough for e-hailing drivers to leave their gig jobs, the Grab Drivers Malaysia Association (GDMA) said.

They have more flexibility, no fixed working hours and there is more pay if they are willing to put in the hard work, according to association president Arif Asyraf Ali.

He said experienced drivers are already used to working on their own time.

“For example, a driver’s target could be to earn RM100 to RM200 a day and if they are diligent they can earn double the minimum wage.

“The other thing is flexibility. There are no fixed working hours. So, if the driver is hardworking, he or she can earn more,” he told The Malaysian Insight.

On average, a part-time Grab driver can earn between RM2,000 and RM3,000, while full-timers can earn RM4,000 or more, Arif said.

“I don’t believe that they will leave to seek minimum wage jobs.”

Arif said the GDMA currently has about 500 members nationwide.

On March 19, Prime Minister Ismail Sabri Yaakob announced the government’s intention to increase the minimum wage from RM1,200 to RM1,500 a month, beginning in stages from May 1.

He said the new wage will initially only apply to large firms and government-linked companies.

At present, the minimum wage in 57 towns and cities nationwide is set at RM1,200 a month, and RM1,100 for rural areas.

The minimum wage was last revised on February 1, 2020, when it was increased from RM1,100 to RM1,200 during the tabling of Budget 2020.

Arif said that people doing minimum wage jobs do have benefits such as contributions to the Employees Provident Fund, Social Security Organisation and paid leave.

“If the employee is sick they have paid leave, while people who are self-employed don’t earn if they don’t work.

“However, after deductions minimum wage earners will probably be taking back RM1,300.

“That’s the difference between drivers and minimum wage jobs.”

Arif said the drivers enjoy the flexibility because they are also doing other side businesses.

“We can see the youth now are into the gig economy. Even though they are driving, some are also doing other business online, or other part time jobs on the side.

“Even if the minimum wage is raised, most drivers prefer the flexibility. Yet, they might opt out if there is a better salary than their current earnings.

“They also feel that if they go for an office job, they have to clock in daily, or have to entertain their bosses. Overall, less flexibility.”

Meanwhile, Arif expects business to pick up during the endemic phase as more people are travelling.

“More people are now travelling back to their offices, to LRT, MRT stations. There are more jobs now compared with last year.

“Drivers who don’t want to ferry passengers can also opt for Grab food delivery or Grab Express (goods delivery).”

He said that since January, earnings of e-hailing drivers have increased by more than 10%.

“We have just started the transition towards the endemic phase and we believe the second quarter will be better.”

The government said the country will begin its transition to the endemic phase on April 1. Along with this, international borders have been reopened to tourists, boosting hopes for quicker economic recovery. – April 9, 2022.