The Indian government is preparing to unveil a groundbreaking social security scheme designed specifically for the country’s 7.7 million gig workers. According to recent reports, the scheme could be announced on September 17, aligning with the completion of 100 days of the Narendra Modi government’s third term and coinciding with the Prime Minister's birthday.
Under the proposed plan, aggregators in the gig economy may be mandated to contribute 1-2% of their revenue to create a dedicated social security fund. This fund aims to provide essential benefits such as health insurance and other forms of support for gig workers. The announcement is expected to be a significant step toward addressing the social security needs of this rapidly growing sector.
Union Labor Minister Mansukh Mandaviya has been actively involved in finalizing the details of the scheme. On September 7, 2024, he held discussions with officials to refine the proposal. As reported by the a media agency, while the scheme is nearing its final stages, a concluding meeting with platform operators and aggregators is still pending before the plan is presented to the Cabinet. Detailed specifics of the scheme have yet to be disclosed, but it is anticipated to follow the guidelines set by the Social Security Code passed by Parliament in 2020.
The upcoming scheme is in line with the Social Security Code of 2020, which aimed to consolidate 29 labor laws into four key codes to improve job creation and streamline business operations. Despite the code’s enactment, full implementation has been delayed due to incomplete state-level rule preparations. The government’s new initiative is expected to address gaps in social security for gig workers, a group traditionally excluded from standard employment benefits.
To facilitate the enrollment of gig workers, the government plans to launch an online platform. This platform will assist gig platforms in registering their workers on e-Shram, a state-run database for informal workers. Currently, approximately 300 million workers are registered on e-Shram, qualifying them for various federal social welfare schemes, including free rations and publicly funded social insurance.
State Responses and Ongoing Issues
While states have generally responded positively to the proposed scheme, several challenges remain unresolved. Key issues include defining the legal parameters of employee-employer relationships, wages, and working hours within the gig sector. The gig economy often operates differently from traditional employment models, with many platforms not recognizing themselves as conventional employers.
The forthcoming social security scheme for gig workers represents a pivotal advancement in India's labor landscape. By addressing the unique needs of approximately 7.7 million gig economy participants, this initiative aims to offer crucial benefits such as health insurance and financial security. As the government finalizes the scheme's details and prepares for its official launch, the focus will be on integrating gig workers into the existing social safety net, in line with the Social Security Code of 2020.
The introduction of an online platform to facilitate worker registration and the allocation of funds from aggregators mark significant steps toward creating a more inclusive and supportive environment for gig workers. While challenges remain, particularly concerning the legal framework and employment definitions, this scheme underscores the government’s commitment to enhancing worker welfare and adapting to the evolving dynamics of modern employment.