Social Security For Uber/Ola Drivers, Zomato/Swiggy Delivery Partners, Freelancers Soon

Gig workers will finally have a social security bracket, as a panel has especially been formed by the Ministry of Labour.
Gig workers will finally have a social security bracket, as a panel has especially been formed by the Ministry of Labour.

Last year in September, we brought a story, which turned out to be very good for all gig workers.

A 2017 study by consulting firm EY said nearly one out of four gig workers in the world are in India.

You can understand ‘gig workers’ as people who participate in a work arrangement system and earn livelihood via activities outside the traditional relationship between employer and employees.

This includes all sects of freelancers, like the cab drivers working for Ola/Uber, or delivery personnel for Zomato/Swiggy.

The Central Government last year proposed to provide such gig workers with insurance, health and maternity benefits, old-age protection and several other rights.

Now, it has been reported that the Union Ministry of Labour and Employment has finally accepted several recommendations made by the labour committee, along with other proposals.

This brings us one step closer to finally seeing ‘gig workers’ fall under a social security bracket.

Ministry Proposes to Start a New Platform

Under the recommendation of the labour committee, the Union Ministry of Labour and Employment has proposed to set up a Gig and Platform Workers’ Social Security Fund in the CoSS, 2020.

CoSS (Code on Social Security) is a union of 9 central labour laws.

Also, gig workers include domestic workers, migrant workers, platform workers, agricultural workers, freelancers and anyone working with marketplaces and any other form of digital intermediaries. 

The board set up will be headed by the labour minister, along with representatives from government, gig workers, Central Provident Fund Commissioner and the Director General of ESIC.

How will Funds be Allocated for these Workers?

As per the ministry sources, the benefit funds for gig workers will be administered by the Centre, while major contributions will be made by the aggregators.

In the proposal drafted by the ministry, the aggregators will mandatorily have to contribute upto 2% of their annual turnover, towards the security of their gig workers.

“The fund will be used for meeting the social security and welfare needs of gig and platform workers”.

After receiving about 103 recommendations from the parliamentary panel, the labour ministry accepted around 57 fully, while 19 partly.

Souce: The Print

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