WHAT was once seen as a “casual” job has now become a major source of income of up to RM3,000 a week for an estimated 250,000 gig workers in the country today, a study by The Centre shows.

Gig work was once seen as a means of making “extra income” but is now a major source of income, said the 411 e-hailing and delivery drivers surveyed between October 15 and November 16.

These drivers make up a majority of gig workers in the country, whose plight was highlighted after a pay dispute with delivery service Foodpanda recently.

The survey shows that 54% of respondents between the ages of 18 and 60 said gig income was their main source of earning, while 45% considered it as “extras”.

Almost 75% of the respondents also said their gig income is “important” or “extremely important”, with 58% working between eight and 12 hours a day and 9% working more than 12 hours a day.

Another 86% of respondents said they spend five or more days on gig work a week (30% work daily, 37% work six days and 19% work five days).

The hours, said The Centre, a think-tank founded by former Umno Youth leader Khairy Jamaluddin and Shahril Hamdan, the wing’s deputy, resemble full-time jobs and putting paid to the term “casual work”.

Using the Employment Act 1955 definition of “full-time” work (not more than 48 hours per week) and “part-time” work (30%-70% of full-time hours), The Centre said 58% of the respondents are working “full time” while 19% are part timers.

The remaining 23% who work less that part-time hours per week are classified as “casual” workers – working either for pocket money or extra for spending. 

A majority of the respondents (60%) said they earned less than RM1,000 (gross) a week from gig work while 30% made between RM1,000 and RM1,999 a week, between RM2,000 and RM2,999 (7%) and above RM3,000 (3%).

The Centre said the average net monthly income for a “full-time” gig worker is above the individual living wage in the Klang Valley, making gig work a feasible option for many, especially those without a higher education. 

The term “gig economy” was coined during the 2008-2009 financial crisis to refer to short-term, task-based jobs where workers are paid per assignment or job.

With worsening labour market and job prospects, many – with or without academic qualification – are turning to gig work.

The survey shows that 84% of the “full-time” gig workers do not possess a university degree while the other 16% hold a bachelor’s degree or higher. A higher percentage of degree holders prefer to perform gig work on a “part-time” (23%) and “casual” (47%) basis. 

Putrajaya has said it will regulate the gig economy to protect the interests of customers and workers in the sector, starting with the move to require e-hailing drivers to get public service vehicle (PSV) licences. – December 20, 2019.