New Social Security Measures for Gig and Platform Workers: What You Need To Know

On July 22, 2024, the Ministry of Labour & Employment shared important updates regarding social security measures for gig and platform workers in India.

Understanding the New Provisions

1. Defining Gig and Platform Workers:
   • The Code on Social Security, 2020 now includes clear definitions for gig workers and platform workers. Gig workers are those who take on short-term, flexible jobs, often facilitated through digital platforms, while platform workers specifically engage in work arranged through online platforms like ride-sharing or food delivery services.
2. Growth Projections:
   • According to a NITI Aayog report titled India’s Booming Gig and Platform Economy (June 2022), the number of gig and platform workers was estimated at 7.7 million in 2020-21. This number is expected to increase significantly, reaching 23.5 million by 2029-30. This rapid growth underscores the need for comprehensive social security measures.
3. Social Security Measures:
   • The Code on Social Security, 2020, aims to provide gig and platform workers with various benefits:
     • Life and Disability Cover: Financial support in case of death or permanent disability.
     • Accident Insurance: Coverage for accidents that occur while working.
     • Health and Maternity Benefits: Access to healthcare services and maternity leave.
     • Old Age Protection: Pension or savings schemes for retirement.
   • To fund these benefits, a Social Security Fund will be established.
4. Registration and Implementation:
   • Section 113 of the Code outlines the process for registering unorganized workers, including gig and platform workers. This registration is crucial for them to access the social security benefits outlined in the Code. However, the provisions are still in the process of being implemented.

Importance:

The introduction of these social security measures represents a major step forward in recognizing and supporting gig and platform workers, who often face job insecurity and lack of traditional benefits. As the gig economy continues to grow, having a robust social security system in place will help provide stability and protection for millions of workers.