The Indian government is gearing up to launch a social security plan for gig workers, requiring aggregators to contribute 1-2% of their revenue to fund benefits like health insurance. This initiative aims to support the growing gig economy, which currently consists of around 7.7 million workers. The plan is expected to be unveiled on September 17, coinciding with Prime Minister Modi’s 74th birthday.
A Long-Awaited Move for Gig Workers
The upcoming social security scheme will be aligned with the Social Security Code passed in 2020 but not yet implemented. Union Labour Minister Mansukh Mandaviya has been finalizing the details, and the plan may soon reach the cabinet for approval. Gig platforms like Zomato, Uber, and Amazon are expected to register with the e-Shram portal, India’s national database for informal workers.
Contributions from Aggregators
One of the standout features of the plan is the requirement for gig economy platforms to contribute 1-2% of their revenue to a fund that will provide social benefits to workers. This move marks a significant shift, acknowledging the vital role that gig workers play in sectors like transportation, food delivery, and other app-driven services.
While the final details of the financial outlay are still being worked out, the fund will be used to offer essential benefits like health insurance, which has long been a concern for gig workers across India.
Challenges and Responses
Despite the positive outlook, some challenges remain. States like West Bengal have raised technical concerns regarding the scheme, although officials are confident that these issues can be resolved. In addition, trade unions have been consulted to ensure that their feedback is incorporated into the final version of the plan.
Several states, such as Rajasthan and Karnataka, have already taken steps to regulate gig work, introducing legislation to safeguard workers’ rights. However, enforcement of these laws remains patchy.
The Road Ahead
As India’s gig economy is set to grow to 23.5 million workers by 2029-30, this social security initiative is an important first step toward providing essential benefits. The government is working closely with all stakeholders, ensuring that gig workers, a vital part of India’s workforce, are not left behind.
