Widening the security net: Framework for gig workers set for June launch

Labour lawyer B C Prabhakar said that since the new labour codes are not yet implemented, it is pertinent that the government come up with a holistic framework for welfare of this bulging workforce

To provide welfare and social security net to millions of gig and platform workers, the labour ministry is considering launching a “framework for social security coverage” by June this year, senior government officials told Business Standard.

 

“While the labour codes are not yet in place, the government is committed to ensure that the burgeoning gig workforce is not deprived of its rights. The new comprehensive framework is expected to be introduced by June this year,” one of the officials said. 

Under the new framework, the government may introduce unique identity numbers for gig workers, allowing them to work seamlessly across platforms and access the social security net with ease. Among other benefits to be made available, health insurance, life and disability cover, accident insurance, and pension cover have been proposed. 

“The challenge is in defining gig workers and who will contribute to social security schemes, as they lack a traditional employer-employee relationship. The Centre is working on a host of benefits, ensuring they come under basic social security net and are not exploited,” said the official.  

Earlier last month, labour secretary Sumita Dawra chaired a meeting to deliberate on social security schemes for gig and platform workers as part of the ongoing deliberations to put in place social security coverage for this workforce. The meeting was attended by labour ministry officials, platform aggregators like Zomato and Swiggy, workers’ associations, and participants from Niti Aayog, ILO (International Labour Organisation) and NCAER (National Council of Applied Economic Research). 

The meeting deliberated upon the various forms of benefits available to the unorganised and organised sectors, operational mechanisms, funding requirements, monitoring and evaluation, and grievance redressal aspects. 

Labour lawyer B C Prabhakar said that since the new labour codes are not yet implemented, it is pertinent that the government come up with a holistic framework for the welfare of this bulging workforce. 

“It is expected that under this framework, the government may come up with a scheme with budgetary support. This will be akin to other schemes that the government has already launched for the welfare of various categories of workers like PM SvaNIDHI for street vendors, etc.,” Prabhakar added. 

The new Code on Social Security 2020 outlines various measures for gig and platform workers, including life and disability insurance, accident insurance, health and maternity benefits, and old-age protection. It also proposes setting up a Social Security Fund to support these initiatives.

 

According to a 2022 Niti Aayog report, there were around 7.7 million gig and platform workers in India in 2020-21, and are projected to grow to 23.5 million by the end of 2029-30. 

Widening the security net 

Nearly 7.7 million gig and platform workers in India in 2020-21

Projected to grow to 23.5 million by the end of 2029-30

Health insurance, life and disability cover, accident insurance and pension cover proposed under new framework

Govt likely to introduce unique identity numbers for gig workers, allowing them to work seamlessly across platforms