Social security policy for gig, platform workers under process: Mandaviya

The minister said that Niti Aayog has estimated 65 lakh gig and platform workers in the country, but the number is likely to be over two crore as this segment is growing very fast

Union Labour Minister Mansukh Mandaviya on Thursday said a policy for providing social security benefits like pension and health services to gig and platform workers is under process.

Talking to reporters, the minister said Niti Aayog has estimated 65 lakh gig and platform workers in the country, but the number is likely to be over two crore as this segment is growing very fast.

He explained that the service sector is moving very fast to platforms for ease of consumers and expanding their operations.

About different provisions of the Social Security Code for gig and platform workers, he said, "We cannot deprive them of their rights till the implementation of the Code. We have to bring a policy before that".

About the timeline for bringing the policy, he said the ministry wants to bring the policy at the earliest.

"I want to do a lot of things before the next budget," he said.

Earlier in the day, the minister chaired the meeting of representatives of various associations and unions of gig and platform workers.

He informed that at present, the ministry is working on providing social security and health services or insurance to these workers through the new policy.

Mandaviya also assured that the new policy would be legally binding across the country.

There have been many suggestions like the creation of unique identity numbers for providing social security and other benefits, he added.

Some of them suggested the collection of contributions for the schemes from transactions or imposing cess.

He said that the ministry is exploring all suggestions as there is no employer and employee relationship in their case, and the main issue is who would pay for employers' contribution to social security schemes for them.

For the first time, the definition of 'gig workers' and 'platform workers' has been provided in the Code on Social Security 2020.

As per an estimation by Niti Aayog vide its report titled 'India's Booming Gig and Platform Economy' published in June 2022, the number of gig workers and platform workers in the country was 7.7 million in 2020-21, which is expected to rise to 23.5 million by 2029-30.

The report also sheds light on the various social protection approaches taken around the world for gig workers and platform workers and how they can pave the way for social protection measures.

The Code on Social Security 2020 provides for the framing of suitable social security measures for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc.

The Code also provides for setting up a Social Security Fund to finance the welfare scheme.

Section 113 of the Code on Social Security 2020 provides for the registration of unorganised workers, gig workers and platform workers. The provisions of the Code are yet to come into effect.