Social Security for Gig Workers

Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Context

  • Nationwide strike by around one lakh gig workers occurred on December 31.
  • Strike followed publication of draft Rules to operationalise refreshed labour codes.
  • Platforms relied on police intervention to meet service demand during strike.

Position of Gig Workers under Draft Rules

  • Gig workers are included only under social security, not wages or working conditions.
  • Code on Wages excludes gig work from an employment relationship.
  • Platforms are obligated only to make gross contributions to a social security fund.
  • Workers’ demands on algorithmic rate cuts and opaque incentives remain unaddressed.
  • OSH&WC Rules rely on employer-centric compliance via Shram Suvidha Portal.
  • App-mediated work concerns are not addressed by this conventional compliance model.

Social Security Provisions

  • Gig workers must register on a designated portal to access benefits.
  • Aggregators must upload worker details and update data quarterly.
  • Eligibility requires 90 days with one aggregator or 120 cumulative days annually.
  • One calendar day may count multiple days if earnings occur across aggregators.

Concerns with Eligibility Framework

  • Thresholds may penalise workers facing care duties, illness, or demand slumps.
  • Rules do not constrain platforms’ control over work allocation and availability.
  • Eligibility windows risk lapsing due to temporary income disruptions.

Need for Redesign

  • Eligibility thresholds must protect against illness, maternity, and demand collapses.
  • Rules should clearly specify benefits, dispute resolution, and minimum fund support.
  • A time-bound claims and appeals process is essential, independent of platform goodwill.
  • Aggregators should provide periodic work and earnings statements to workers.
  • Workers must have the right to contest inaccurate or irregular data.

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