Eco Survey: Need for a policy to enable stable, better pay for gig workers

The Economic Survey calls for State support to raise gig workers' pay, curb platform dominance, and ensure stable incomes, with 40% earning under ₹15,000 a month

Despite massive growth in the gig economy and with the new Labour Codes aiming to improve conditions of these workers, there is now a need for a policy to enable stable and better pay, said the Economic Survey 2025-26.

 

It also called for regulating the concentration of power of the platforms.

 

Citing data from the Indian Staffing Federation (ISF), the Survey noted that about 40 per cent of gig workers report earnings of less than ₹15,000 per month.

 

“While the gig economy is booming, income volatility persists, leading to challenges in accessing credit.

 

Financial inclusion also lags behind for gig workers,” said the Survey.

 

It added, “Platform algorithms control work allocation, performance monitoring, wages, and supply-demand matching, raising concerns about algorithmic biases and burnout.”

 

Gig workers should engage in such work out of choice rather than necessity. And, policy should use upskilling to enable upward mobility, better pay and stable incomes, said the Survey.

 

India’s gig economy has grown from 7.7 million workers in FY21 to 12 million in FY25, a 55 per cent jump in four years.

 

Growth of gig workers outpaces overall employment and now constitutes over 2 per cent of the total workforce in India, said the Survey, citing ISF data.

 

The Survey identified access to credit and productive assets, such as vehicles and specialised equipment, as major hurdles which prevent workers from upgrading from low-to-medium skilled gigs.

 

It suggested that platforms and employers must be encouraged by the state to co-invest in assets and training that would allow upward mobility.

 

The market also needs to be incentivised to offer more flexible and agile financial products that consider the income patterns of gig workers, said the Survey.

 

Additionally, the Survey noted that as platforms have become essential for finding workers and work, there is concentration of power. This raises concerns over fees, algorithms, and worker protections. Policy initiatives should resolve this through competition rules, data access, and algorithmic transparency.

 

This comes after growing unrest and mobilisation among gig workers and unions. They have been protesting against low earnings, arbitrary incentives, algorithmic control, unsafe working conditions and limited financial inclusion.

 

“The Economic Survey rightly recognises the rapid growth of India’s gig workforce and the need to balance regulation with flexibility. However, flexibility must not come at the cost of dignity, fair wages, and social security. When nearly 40 per cent of gig and platform workers earn below ₹15,000 per month and face income volatility, algorithmic control, and limited financial inclusion, stronger labour protection is no longer optional — but urgent,” said Shaik Salauddin, founder president, Telangana Gig and Platform Workers Union (TGPWU).

 

The Survey recognised the benefits of the provisions for gig workers and their protection under the Code on Social Security, 2020. But it also highlighted concerns, including categorisation of workers.

 

“While the law recognises gig and platform workers as a distinct category, it treats them as a largely homogeneous group, whereas in practice the workforce is highly segmented by skill,” said the Survey.

 

The share of high-skilled gig workers is expected to be 27.5 per cent by 2030, while for low-skilled workers, it is projected to be 33.8 per cent, according to a NITI Aayog report from 2022.

 

After a nationwide strike on Christmas and New Year’s Eve by delivery workers, the labour ministry asked platforms to drop 10-minute delivery timelines.

 

“Policy can reduce the cost gap between regular and gig work by limiting incentives to avoid mandatory benefits and by setting minimum per-hour or per-task earnings. The goal of gig economy policy should be to reshape the terms so that workers exercise real choice rather than being pushed into gigs due to weak demand, skill mismatch, or the absence of a safety net,” the Survey added. 

Survey suggestions

• Policy initiatives need to regulate excessive power held by platforms
• Employers should be mandated to co-invest in workers’ upskilling to ensure upward mobility and better pay
• Market also needs to be incentivised to offer more agile financial products 
• keeping in mind gig workers’ income patterns