Pension to insurance: What govt is planning as social security measures for gig workers

The labour ministry will soon implement a social security framework for gig workers, providing health insurance and pension benefits to workers such as ride-hailing drivers and delivery platform staff. This move precedes the full implementation of the labour codes, which are yet to be enforced as several states have not adopted them.

Interim framework to support gig workers

Labour minister Mansukh Mandaviya announced on Thursday that while the labour code is not yet in place, the government will ensure gig workers are not deprived of their rights. “We cannot deprive them of their rights till the implementation of the Code. We have to bring a policy before that,” said Mandaviya.

The framework is expected to be introduced before the national budget in February, and once in place, it will be legally binding across India. The announcement followed a meeting with the Platform Workers’ Association, where the need for immediate protection was emphasized.

Planned social security measures for gig workers

Health insurance and pension: The government is working on introducing health insurance and pension schemes for gig workers, ensuring they receive basic social security benefits.

Life and disability cover: As part of the measures under the Code on Social Security 2020, gig workers will be eligible for life and disability insurance. This will provide financial protection in case of accidents or unforeseen events.

Accident insurance: The framework will also cover accident insurance for gig workers, ensuring their medical expenses are taken care of in case of work-related injuries.

Maternity benefits: Female gig workers will be entitled to maternity benefits, which will support them financially during maternity leave.

Old age protection: Pension plans will be introduced to secure the financial future of gig workers in their old age, ensuring a safety net after retirement.

Social Security Fund: A Social Security Fund will be set up to finance these welfare schemes. The fund may be supported through various mechanisms, including a proposed cess on transactions carried out through gig and platform-based companies.

Unique identity numbers: To streamline the distribution of benefits, the government may introduce unique identity numbers for gig workers, allowing them to access social security schemes easily.

Extension of enhanced life insurance

In addition to the gig worker framework, Mandaviya also extended the enhanced life insurance benefits for the six crore members of the Employees’ Provident Fund Organisation (EPFO). This extension is retroactive from April 28 and will provide up to Rs 7 lakh in life insurance coverage.

The main challenge, however, lies in defining who will contribute to social security schemes, as gig workers lack a traditional employer-employee relationship.

Growing gig economy

According to Niti Aayog, there are around 65 lakh gig and platform workers in India, though the actual number could exceed two crore due to the sector’s rapid growth. The Code on Social Security 2020 outlines various measures for gig and platform workers, including life and disability insurance, accident insurance, health and maternity benefits, and old-age protection. It also proposes setting up a Social Security Fund to support these initiatives.

By introducing this framework, the government aims to address the immediate social security needs of gig workers while awaiting the full implementation of the labour codes.