The Indian government is currently in the final stages of developing a groundbreaking social security scheme tailored specifically for gig workers, a rapidly growing sector of the workforce in the country. Expected to be presented to the Union Cabinet for approval in the near future, this initiative aims to establish a safety net for gig workers who often find themselves in precarious employment situations due to a lack of traditional job opportunities.
Labour Ministry’s Innovative Approach
Sources reveal that the Ministry of Labour has engaged in extensive consultations with various stakeholders, including gig workers’ associations, online aggregators, and state governments, to shape the framework of this pioneering scheme. The proposed model involves a modest contribution of 1% to 2% from the daily earnings of gig workers on each platform they are affiliated with. This contribution will be channeled towards providing essential benefits such as provident fund and pension provisions to the workers, thereby enhancing their financial security and well-being.
Furthermore, in alignment with the vision outlined in the Union Budget, each gig worker will be enrolled on the labour ministry’s e-Shram portal and issued a unique 12-digit Universal Account Number (UAN). This identifier will streamline the process of tracking and managing the contributions made by gig workers across different platforms, ensuring transparency and efficiency in the implementation of the scheme.
Empowering Gig Workers for a Secure Future
The estimated 7.7 million gig workers in India in 2020-21 have now swelled to over 10 million, underscoring the urgent need for comprehensive social security measures in this sector. Many gig workers, reliant on daily earnings without a safety net, face significant financial vulnerabilities in the absence of formal employment benefits. While some aggregators offer limited accidental insurance coverage, a dedicated social security scheme tailored to the unique needs of gig workers is a critical step towards addressing this gap.
Moreover, the government’s commitment to including gig workers in the Pradhan Mantri Jan Arogya Yojana (PMJAY), a flagship health insurance program, reflects a holistic approach towards safeguarding the well-being of this segment of the workforce. The forthcoming scheme, in line with the provisions of the Code on Social Security, 2020, is poised to deliver a comprehensive suite of benefits, encompassing life and disability cover, accident insurance, health and maternity provisions, and old-age protection.
In conclusion, the impending social security scheme for gig workers represents a significant milestone in India’s evolving labor landscape, signaling a paradigm shift towards greater inclusivity and protection for all segments of the workforce. By bridging the gap in traditional employment benefits and extending a much-needed safety net to gig workers, this initiative embodies the government’s commitment to fostering a more equitable and secure environment for all workers in the gig economy.
The proposed benefits under the scheme will be aligned with the principles enshrined in the Code on Social Security, 2020, obviating the need for separate legislation and ensuring a seamless integration of gig workers into the broader social security framework. As the contours of this transformative scheme take shape, the future looks brighter for gig workers across the country, poised to embark on a journey towards greater financial stability and social protection.
