Why in News :
Despite steps taken in the Union Budget 2025 and through the Code on Social Security, 2020, India’s labour surveys—especially the Periodic Labour Force Survey (PLFS)—still fail to adequately capture the gig and platform workforce as a distinct employment category.
Key Issues Highlighted
Gig Work Not Classified in Labour Data:
- Gig and platform workers are technically covered in PLFS under ‘economic activity’.
- But lack of specific classification leads to invisibility.
- They are clubbed under ‘self-employed’, ‘casual labour’, or ‘own-account workers’, which does not reflect their unique work conditions.
Legal Definitions but Poor Implementation:
- Code on Social Security, 2020 defines gig and platform work under Sections 2(35) and Clause 141.
- Social Security Fund and National Social Security Board were envisaged for gig workers.
- However, policy planning depends on PLFS data, which doesn’t distinguish this workforce → Policy gaps.
Survey Methodology Gaps:
- The Ministry has not updated PLFS schedules to capture the gig economy specifically.
Digital labour marked by:
- Multiple job roles
- No formal contracts
- Algorithm-based assignments
- Lack of employer accountability
- These traits remain statistically invisible in PLFS.
Implications for Governance & Policy
Data-Policy Mismatch:
- Recognition in policy (e.g., e-Shram portal, Ayushman Bharat extension) but no empirical foundation in national surveys → Incoherent implementation.
Welfare Exclusion:
- Eligibility for social protection schemes becomes arbitrary when worker identity is not clearly captured in labour data.
Misclassification Affects Labour Rights:
Labeling gig workers as self-employed denies them:
- Job security
- Social security
- Benefits under labour laws
Undermines India’s Future of Work Strategy:
- NITI Aayog projects 23.5 million gig workers by 2030.
- Lack of robust classification in labour statistics hurts long-term employment planning.
Broader Significance
- Right to Equality (Article 14) and Right to Livelihood (Article 21) are undermined if gig workers remain outside official labour metrics.
- Digital inclusion requires not just tech access but also formal economic recognition.
Way Forward
Revise PLFS Classification Codes:
- Introduce distinct category for gig/platform workers based on work structure, platform dependence, and contract status.
Supplement with Special Surveys:
- Conduct dedicated module surveys or time-use surveys on gig work for richer data.
Interlink Policy Databases:
- e-Shram, Ayushman Bharat, and digital ID databases must be interlinked with PLFS and NSSO for targeted policymaking.
Legal Reforms:
- Broaden the operational framework of the Social Security Code with mandatory data-based accountability.
| UPSC Relevance : GS Paper 2: Welfare Schemes, Governance, Labour Rights GS Paper 3: Employment, Inclusive GrowthEssay/Ethics Linkage: Social Justice, Dignity of Labour Mains Practice Question Q. The growing gig economy in India presents both opportunities and challenges. Critically examine how the lack of statistical recognition of gig workers undermines inclusive policy-making and labour rights. Suggest measures to address this issue. |