Benefits for gig workers may trickle in before social security code launch

The government may advance the launch of certain social security benefits for gig or platform workers even before the formal implementation of a comprehensive Social Security Code. This move comes on the back of some states bringing in such provisions in their local laws.

The labour and employment ministry has already sounded out the aggregators that operate platforms, or digital marketplaces, for gig work, and asked them to prepare for extending social security benefits to workers providing such temporary or freelance services, a senior government official told ET.

"We are ready for the roll out (of the social security cover). Various options are being considered and a final decision could be taken soon," the official said.


The labour ministry will soon write to states asking them to expedite enrolment of platform workers on the e-Shram portal so that a comprehensive database is in place for a smooth nation-wide roll-out of the scheme, the official said.

States including Karnataka, Telangana and Rajasthan have either announced a policy on gig workers or are preparing to come up with one, to extend health insurance and other related benefits to the local gig workers.

A NITI Aayog report estimated India's gig worker population at 7.7 million in 2020-21 and estimated this to more than triple to 23.5 million by 2029-30.

As per the draft policy, which has been in place for more than two years now, aggregators will pitch in 1-2% of their revenue and the government will make a matching contribution to a social security fund to be created for the purpose.

The fund corpus will be used to provide health insurance cover, preferably through the Employees' State Insurance Corporation, along with income security or pension, unemployment, sickness, injury and maternity benefits among others.

The labour ministry had in 2020 notified provisions related to the constitution of an advisory board under the Code on Wages, setting a precedent that certain sections can be notified and implemented before the Code is implemented.

This was also part of the key agenda of the ministry. The ruling BJP had also in its manifesto promised to register gig and platform workers on its portal to extend social security benefits to them.