50 Lakh Gig Workers From Uber, Swiggy, Ola Will Get Govt Insurance Under ESIC

50 Lakh Gig Workers From Uber, Swiggy, Ola Will Get Govt Insurance Under ESIC
50 Lakh Gig Workers From Uber, Swiggy, Ola Will Get Govt Insurance Under ESIC

Once the Social Security Code is implemented for platform and gig workers, the labor ministry is targeting to bring 40-50 lakh of these workers under the Employees’ State Insurance Scheme (ESIC), as per the FE report.

Implementation Of Employees State Insurance Scheme

After this implementation, India will be amongst the few countries where such steps have been initiated to bring this category under the social security net. 

Last September, this code was passed by Parliament to seek an extension of ESIC benefits to these two categories of workers.

Although, this seems to be the least privilege among the labor force.

Collection In Social Security Fund

For implementing the same, the platforms and aggregators like Swiggy and Uber are proposed to contribute either 1-2% of the annual turnover or 5% of the total amount payable to such workers, whichever is lower, to a social security fund.

Moreover, the Centre was expected to implement the four labor codes passed by Parliament recently from April 1, 2021.

Delay In Implementation

Although, it is likely to be delayed since most of the state governments are yet to frame the rules under the codes.

Moving ahead, the standing committee on labor also had recommended the framing of schemes for platform and gig workers in the labor codes.

So far, an estimated 40-50 lakh such workers are likely to join the ESIC scheme and the number might go up in the future.

Basically, the main focus is to bring all workers under some sort of social security net, according to the sources.

More To Come In Future

Prior to this, the government had proposed to set up a database of informal sector employees including gig and platform workers during the 2021-22 budget.

So that it can help in offering social security and welfare benefits to them in the future.

From September 2017 to December 2020, over 4.63 crore new subscribers joined the ESI scheme, according to the government’s data.

Interestingly, ESIC had around 13 crore beneficiaries eligible to avail of ESI benefits by March 2018.

In near future, the government wants to bring all workers under some sort of social security net.

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