 "Centre considers early rollout of social security for gig economy workers")
The Centre is contemplating accelerating the rollout of social security benefits for workers in the unorganised sectors, even before the full implementation of the Social Security Code, The Economic Times reported. This consideration follows several states’ recent adoption of similar measures in their local regulations.
The Ministry of Labour and Employment has been in discussions with aggregators in the digital gig economy, urging them to get ready to extend social security benefits to these temporary and freelance workers.
The report quoted a senior government official as saying that various strategies for implementing the benefits are being assessed, with a final decision expected soon.
The Labour Ministry plans to direct states to fast-track the registration of platform workers on the e-Shram portal. This initiative aims to create a detailed database to ensure a smooth, nationwide rollout of the benefits scheme.
State-level initiatives
States such as Karnataka, Telangana, and Rajasthan have either rolled out or are developing policies to provide health insurance and other benefits to local gig workers. According to a NITI Aayog report, the number of gig workers in India, which was 7.7 million in 2020-21, is projected to rise to 23.5 million by 2029-30.
Under the draft policy, which has been under discussion for over two years, aggregators are expected to contribute 1-2 per cent of their revenue to a social security fund, with the government matching this contribution. This fund will be used to offer health insurance, income security, pensions, unemployment benefits, sickness and injury coverage, and maternity benefits, primarily through the Employees’ State Insurance Corporation, the report said.
In 2020, the Labour Ministry set a precedent by notifying provisions related to an advisory board under the Code on Wages, demonstrating that certain legislative sections can be enacted before the full Code is in place. This strategy is consistent with the Bharatiya Janata Party election manifesto promise to register gig and platform workers and extend social security benefits to them.