New Delhi: The Indian government is reportedly pushing for gig economy firms such as Ola, Uber, Swiggy, Zomato, and Urban Company to provide social security benefits to their workers. These benefits could include life insurance, personal accident insurance, and health coverage.
According to reports, the labour ministry has held discussions with the platforms, but the issue has yet to be resolved. The move is part of the government’s efforts to provide social security to all informal workers in the country as it prepares to notify the labour codes.
Gig workers are individuals who work outside of traditional employer-employee relationships and are paid for their services. Platforms such as Uber, Ola, Swiggy, and Zomato hire gig workers who are not eligible for social security benefits like provident fund, group insurance, and pension since they are not salaried employees. The government’s proposal aims to provide gig workers with benefits such as life and disability insurance, accident insurance, health and maternity benefits, old-age protection, and creche facilities.
The International Labour Organization’s 2021 report suggests that only around 40% of workers on web-based platforms have health insurance, while less than 20% are covered for employment injury, unemployment and disability insurance, or old-age pensions or retirement benefits. The numbers are even lower in developing countries, the report said.
While the government is trying to ensure that platforms provide social security and publicly disclose it, companies have pointed out several difficulties. One of these difficulties is that workers often work across multiple platforms, making it difficult to provide coverage.
Despite the challenges, the proposed move is likely to be welcomed by gig workers who have been advocating for social security benefits for some time. With over 1.3% of the active labour force estimated to be in the gig economy, it is essential that the government addresses the issue of social security for informal workers.
The labour codes on social security, industrial relations, wages, and Occupational Safety Health & Working Conditions (OSH) have already been passed by Parliament. However, they can only be implemented when the Centre and states notify the respective rules since labour is a concurrent subject. The Code on Social Security proposes the creation of Social Security Funds through contributions from certain aggregators, in addition to providing benefits to gig workers.
In conclusion, the government’s proposal to provide social security benefits to gig workers in India is a significant step towards ensuring the welfare of informal workers. While there are challenges to be addressed, the move is likely to be beneficial for gig workers who have long been advocating for such benefits. It is essential that the government and platforms work together to ensure that these benefits are provided in a way that is effective and sustainable.
