Government Finalizing Social Security Scheme for Gig Workers, Cabinet Approval Soon
The government is on the verge of finalizing a comprehensive social security scheme for gig workers, a move that could soon be presented to the Union Cabinet for approval. This initiative aims to provide much-needed financial security to India’s expanding gig workforce, which has been growing steadily due to the limited availability of stable employment opportunities.
Sources indicate that the labour ministry has been actively engaging with gig worker associations, online aggregators, and state governments to design the scheme. The proposal suggests a contribution model where a deduction of 1% to 2% would be made from the daily earnings of gig workers on each platform they are associated with. The objective is to ensure that gig workers receive provident fund and pension benefits, offering them a financial cushion in the absence of traditional employment structures.
A key feature of the scheme is the registration of each gig worker on the labour ministry’s e-Shram portal, where they will be assigned a unique 12-digit Universal Account Number (UAN). This identification will enable seamless tracking of their contributions, ensuring that the deducted amount is appropriately credited to their social security accounts. If a gig worker transitions into a regular job, the accumulated benefits under this scheme will be integrated into their Employees’ Provident Fund Organisation (EPFO) account, allowing continuity in their financial security.
While the exact percentage of the contribution is yet to be finalized, it is expected to fall within the 1% to 2% range. With the gig economy expanding rapidly, the initiative is expected to benefit millions of workers who currently lack a safety net. NITI Aayog had estimated that there were 7.7 million gig workers in India in 2020-21, and this number is projected to have surpassed 10 million by now. Many gig workers depend solely on their daily earnings without any long-term financial security, making this scheme a crucial step toward their welfare.
Currently, some online aggregators provide accidental insurance to their gig workforce, but a structured social security framework is absent. The government has already taken a step forward by including gig workers under the Pradhan Mantri Jan Arogya Yojana (PMJAY), a significant move that will ensure access to essential healthcare services.
The proposal aligns with the provisions of the Code on Social Security, 2020, which has not yet been implemented but includes guidelines for ensuring social security for gig and platform workers. This code outlines measures for life and disability cover, accident insurance, maternity and health benefits, as well as long-term financial protection. A Social Security Fund is also proposed under this framework to finance welfare schemes for gig workers.
Instead of introducing a separate legislative process, the upcoming scheme is expected to be designed in accordance with the Code on Social Security, streamlining its implementation. If approved, this move will mark a significant milestone in securing the future of India’s gig workforce, providing them with stability and financial protection in an evolving employment landscape.
