A sustainable framework

With the rapid growth of the gig economy in India, the Centre has come up with focused attention to extend the benefits meant for social security to the workers of the unorganised sector. This is with a view to the increasing population of gig workers that is estimated to rise from 7.7 million in 2020-21 to as many as 23.5 million by 2029-30, according to a report by NITI Aayog.

The government is pushing ahead with the plans to roll out social security benefits for gig workers ahead of the full implementation of the Social Security Code in view of their increasing contribution to the economy. Gig workers are those people who, as delivery personnel, drivers, or as any other service providers, are employed on a temporary or freelance basis by platforms like Swiggy, Zomato, Ola, and Uber.

Historically, they have been bereft of basic benefits such as health insurance, pensions, and unemployment protection despite the huge contribution they make in the digital marketplace. The Ministry of Labour and Employment has been considering options for implementing social security benefits among gig workers. Discussions have included the possibility of aggregators' paying 1-2% of their revenues into a social security fund, to be matched by the government.

This fund is expected to cover key benefits including health insurance, income security, unemployment protection, and maternity leave. Such provisions would largely be implemented through the Employees' State Insurance Corporation-a model that has been under discussion for over two years.

Last year, the Labour Ministry pioneered the rollout of parts of the Code on Wages in advance of the law taking effect. That set the precedent for the incremental implementation of the Social Security Code as well-so gig workers could get benefits from the provisions of the Code before the full rollout. This is also in tune with what the BJP had promised in its election manifesto: registration of gig workers and extending to them social security benefits.

While the Centre is busy concocting its umbrella social security blueprint, many states are not waiting but rather forging ahead to safeguard their gig workers. Karnataka and Telangana have already implemented or are working on policies to provide health insurance and other benefits. These state-level initiatives highlight how acute the welfare needs of a growing workforce, left out of traditional employment modes, have grown.

The Labour Ministry also plans to instruct the states to expedite the registration of platform workers on the e-Shram portal. E-Shram was launched in 2021 for creating a national database of unorganized workers, especially gig workers, so that their numbers can be factored in for better policy implementation. Over 29.83 crore workers are presently registered on the portal, and this database is at the top agenda to ensure seamless national implementation of social security schemes.

While these are key steps towards securing the rights of gig workers, many challenges remain ahead. How the proposed social security fund, to which the platform companies and the government are expected to contribute in equal measure, will be financially sustainable is not very clear. Compliance from the aggregators would have to be ensured and should not prove onerously costly for businesses while balancing workers' welfare.

The other issue is the variability in gig work that rarely provides certain continuity in earnings. As reports suggest, more than 77% of gig workers in India earn less than ₹ 2.5 lakh annually. Social security measures would then need to take this anomaly into consideration, ensuring the benefits on health insurance and income support reach the needy.

How these benefits are rolled out is, however, going to require efficient coordination between the central government, state governments, and private companies. States with policies already in place to protect gig workers can be models, but what is required is uniformity at the pan-Indian level if things are to be effective in the long run.

India's gig economy grows, this move of the government to extend social security to gig workers marks an important beginning in securing their work environment. It thus works in conjunction with State Governments and Platform Aggregators to establish a sustainable framework that will extend much-needed benefits to millions of gig workers. By introducing social security, especially with programs like the e-Shram portal, stability and protection will be ensured for this critical yet vulnerable segment of the workforce.