Indian govt developing scheme to extend social security benefits to gig and platform workers: Union Labour Secretary

New Delhi: The Ministry of Labour & Employment is developing a scheme to extend benefits such as social security to gig and platform workers in India, according to media reports.

Speaking at the CII Global Economic Policy Forum in New Delhi, Union Labour Secretary Sumita Dawra highlighted that the labour code on social security includes provisions for these workers, news agency PTI reported.

Dawra noted that the scheme for gig and platform economy workers is required because there is no traditional employer-employee relationship defined for them.

She stressed the need for social security coverage for such workers "so that they can be more productive and support the country's economy and the e-commerce and services sector more effectively."

In October, Union Labour Minister Mansukh Mandaviya stated that a policy to provide social security benefits, such as pensions and health services, to gig and platform workers is under development.

He also mentioned that Niti Aayog had estimated 65 lakh gig and platform workers in the country, but the number could exceed 2 crore due to rapid growth in this sector.

Dawra noted that by 2030, the ministry anticipates over 3 crore workers in the gig and platform economy.

She acknowledged that the current workforce in this segment is approximately 1 crore and is expected to multiply significantly.

For the first time, the definitions of 'gig workers' and 'platform workers' have been included in the Code on Social Security 2020.

According to a Niti Aayog report titled India's Booming Gig and Platform Economy published in June 2022, the number of gig and platform workers in 2020-21 was 7.7 million, projected to rise to 23.5 million by 2029-30.

The gig and platform economy in India has grown rapidly in recent years, driven by the rise of e-commerce, food delivery services, and ride-hailing platforms.

However, the absence of a formal employer-employee relationship in these roles has left millions of gig and platform workers without access to social security benefits such as pensions, health insurance, and other forms of financial safety nets.

Dawra also discussed the impact of artificial intelligence (AI) on jobs as there is a general belief that it will lead to job losses.

However, she opined that "AI is something which probably should be adding to jobs."

"As we see in the auto sector, for example, we do have robots which have been brought in, but then the same labour force has been redeployed to an area where training to use those robots or to maintain that machinery is happening," she added.

Citing experts, she stated that AI may not necessarily disrupt employment negatively and could have a positive impact on the economy.

Dawra also emphasized India's potential to address global labour shortages, citing RBI's provisional estimate of a 643-million-strong workforce.

She pointed out the increasing formalisation of the workforce, with around 7 crore Indians entering provident fund pension coverage since 2017.

Regarding the Employees' Linked Incentive (ELI) Scheme, she said it was announced in the Budget and is a crucial initiative to support manufacturing and workforce formalisation.

"I do hope that the industry will be looking at this scheme and will be using it to make themselves more competitive," she was quoted as saying by PTI.

Indian govt developing scheme to extend social security benefits to gig and platform workers: Union Labour Secretary

NEH Report

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