Social security for gig workers: Labour ministry finalising scheme, to seek Cabinet nod soon

 

Strap:

Surabhi

The government is finalising the contours of a social security scheme for gig workers, which is likely to be taken to the Union Cabinet for approval soon. The move, if it goes through, would provide a safety net to India’s rising gig workforce, many of whom have taken up such jobs due to lack of employment opportunities.

According to sources, the labour ministry has been holding discussions with gig workers’ associations, online aggregators and state governments and is finalising the contours of the scheme, which would be based on a 1% to 2% contribution based on the gig worker’s daily earning from each platform that he or she is working with.

As announced in the Union Budget, each gig worker will be registered on the labour ministry’s e-Shram portal and be assigned a 12 digit universal account number (UAN).  Based on this, the gig worker would be identified and the contribution would be deducted from each platform that they work on. Under the scheme, the worker would receive provident fund and pension benefits.

The quantum of contribution is yet to be finalised but it could be in the range of 1% to 2%.

In case the worker decides to move to a regular job, the social security account under the scheme would be merged with his account under the Employees’ Provident Fund Organisation.

The NITI Aayog had estimated that India has about 7.7 million gig workers in 2020-21 but their numbers are seen to have increased to over 10 million by now.  The scheme is expected to help gig workers who have to rely on their daily earnings with no safety net. While several aggregators provide accidental insurance to workers, they do not have a social security scheme.

The Union Budget has also announced the inclusion of gig workers under the government’s ambitious health insurance scheme, Pradhan Mantri Jan Arogya Yojana (PMJAY).

The Code on Social Security, 2020, which is yet to be implemented, provides for framing of suitable social security measures for gig workers and platform workers for life and disability cover, accident insurance, health and maternity benefits as well as old age protection. It also provides for setting up a Social Security Fund to finance the welfare scheme. Sources indicated that the proposed benefits would be formulated in line with the Code and no separate legislation will be needed.