Gig Workers Reveal How Much They Can Make

Accoding to the Department of Statistics Malaysia (DOSM) statistics, there are almost four million people working in the gig economy in Malaysia.

The sheer amount of workers working in the gig economy has increased drastically in the last decade. This is despite the fact that working a gig job means sacrificing a lot of the stability that comes with a normal 9-5 job.  Most gig jobs do not cover EPF contributions, SOCSO protection, and other benefits that come with formal full time employment. 

But for others who are in the know, the massive amount of workers in the gig economy does not come as a surprise, as we hear about gig economy workers, like ehailing drivers earning up to four figure sums per week from gig jobs.

 Is a gig economy job still worth it today? What about sustainability and stability? To answer this question, we spoke to two gig economy workers to see the true reality behind working in the gig economy, and what they think the future holds for them.

First, we spoke to Helmi, a full-time Grab driver who operates in the Klang Valley. 

“I can make around RM5,000-RM7,000 per month”

“Usually I’ll leave my house in Wangsa Maju at 6am, as this is the only time I can catch passengers who’re looking for rides to public transport stations, such as the LRT station or the MRT station.

“From there, I don’t really have a specific place or area that I cover, as I go from ride to ride. So, where I end up might vary a lot from day to day. However, I do try my best to keep it strictly within the Klang Valley area, so I don’t really take jobs that require me to drive too far away from my house as if I end up too far from my house it’ll add to my cost.

12-hour work shift

“I’ll usually work all the way up to around 1PM to 2PM, where I’ll take a 30 minute break to have lunch. After my lunch, I’ll usually work until around 6PM, where I’ll head home,” said Helmi.

So that makes a 12 hour work shift for Helmi. How often does he do this, and how much can he make from that 12 hour work shift?

“On most weeks, I work 12 hours a day, six days a week. From this, I can make around RM5,000-RM7,000 per month. But this is without accounting for my costs, such as petrol, car service sessions which I have to do regularly on account of the heavy use of my car, and other costs,” said Helmi.

RM4,000 per month

All in all, Helmi said that roughly he’ll take home around RM4000 per month.

When asked if he enjoys working as a Grab driver and if he’ll recommend the job to other people, Helmi had contrasting views.

“I enjoy my job as I don’t mind driving that much, and I like meeting new people. However, I wouldn’t really recommend this job to other people, as it can be very time consuming and tiring. Most of the time when I get home, I barely have the energy to spend quality time with my family, let alone go out and have fun,” said Helmi.

Financial safety net

When speaking about the social security and sustainability of his job, Helmi is aware of the shortcomings of a gig economy job. Helmi also understands the importance of a strong financial safety net, especially with the nature of his work.

Which is why he’s grateful to his employers for the measures that they have taken to ensure that Grab drivers are provided with some semblance of social security.

“With Grab, drivers are provided with the option to purchase daily insurance to protect themselves, and also are provided with a  voluntary contribution scheme called i-Saraan, which allows drivers to contribute to their EPF accounts, which helps them create a retirement plan for themselves,” said Helmi.

Helmi also says that he understands the very unstable nature of his work, which is why he always makes it a point to save as much money as possible, so that he will be protected if anything untoward happens to him.

Four hours a day, six days a week

We next spoke to Arif, a delivery rider about his experience with the gig economy. We were interested in finding out if it provided a living wage for Arif just by  working this gig job.

And according to Arif, it does cover his immediate monetary needs. He points out that if he does delivery orders six days a week,  in a month he is bringing home around RM 2600. “It is good enough for me,” said Arif.

Average of 10 orders per day

Arif also said that this job allows him a lot of free time everyday. Most days it takes him less than four hours to complete 10 orders.

However, this doesn’t mean that if Arif works longer than four hours a day, he can take more than 10 orders.

“This is because the number of orders in a day is limited, and is mostly concentrated in a specific period of time in the day. For example, on most days, after 3PM there are less orders coming in, so if I decide to wait for more orders, I’ll spend most of my time waiting around instead,” said Arif.

Over 97% of ehailing drivers are under age 30

When asked regarding his plans for the future and the sustainability of his job, Arif says it suffices for his single lifestyle for now.  In fact, he is not alone. According to DOSM statistics, over 97% of ehailing drivers and delivery drivers are under 30 years old. The data also shows that over 73% of them depend on gig work as an ehailing driver as their main source of income.

When asked the same question that we asked Helmi, if he’d recommend this job to any of his friends, Arif was very open to the idea.

“Yeah sure! I mean it’s good honest work, so if you think you can ride motorbikes for a good chunk of the day and you’re good at finding directions then you’re set,” said Arif.

Gig economy job still a viable income source

So there you have it, the true reality of working a gig economy job. Is a gig economy job a viable career option?

Well to help answer that question, let’s look at the statistics. The first statistic we’re going to look at is the median and mean income in Malaysia. According to DOSM, the median salary for Malaysians in 2024 is RM2844 per month. This means that gig workers are still earning close to the median wage in Malaysia.

However, gig workers are mostly concentrated in Klang Valley. Which means that another important statistic to look at is the living expenses for people in the Klang Valley. According to EPF’s Belanjawanku expenditure guide, a single person with a car living in the Klang Valley needs RM2,600 a month. This amount goes up to RM5,930 a month for a married couple with 1 child.  

This means that the gig economy can help those who are single and living in the city to earn enough income to support themselves. Howeve, it may not be enough for those who need to support their children and spouse as well.

However that doesn’t mean that gig jobs are not viable. It just might require more careful budgeting for gig workers who want to live in the Klang Valley region. 

Read more:
How To Get Started As A Freelancer In Malaysia
How Can Gig Economy Workers Prepare For Retirement?

This article has been updated on September 30, 2024.