Financial Vulnerability of Gig Workers: Insights and Implications for Social Protection Schemes

Abstract

The emergence of a new business model by various online platforms has led people to venture in the gig economy. The gig workers, however, face issues like job insecurity and low social protection and are prone to social and economic cycle risks. Thus, this research aims to enhance understanding of the financial situation of gig workers in Malaysia. We interviewed 10 purposive selected gig workers, aged 24-58, using semi-structured interview questions within a pre-determined thematic framework. Our analysis showed that, although respondents claim to meet basic needs, they lack financial planning and future security awareness. The majority has no regular savings and lack coverage under social protection schemes, implying that they are financially not resilience. Nonetheless, considering the expenses involved, they have indicated a willingness to pay for social protection but they require a more adaptable system or scheme.