Policy for Social Security Benefits for Gig and Platform Workers in India Under Development by Mansukh Mandaviya

Union Labour Minister Mansukh Mandaviya announced that a policy is being developed to offer social security benefits, such as pensions and health services, to gig and platform workers. Speaking to the press, Mandaviya mentioned that Niti Aayog estimates there are 6.5 million gig and platform workers in India. However, this number may exceed 20 million as the sector rapidly expands.

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The service sector is increasingly shifting towards platforms to enhance consumer convenience and broaden their reach. Mandaviya emphasised that gig and platform workers should not be denied their rights until the Social Security Code is implemented. He stressed the need for a policy before this implementation. The minister expressed his intention to introduce the policy promptly, aiming for completion before the next budget.

Social Security Code Provisions

The Social Security Code 2020 includes definitions for gig and platform workers for the first time. According to Niti Aayog's report titled "India's Booming Gig and Platform Economy," published in June 2022, there were 7.7 million gig workers in 2020-21. This figure is projected to increase to 23.5 million by 2029-30.

The Code on Social Security 2020 outlines provisions for creating suitable social security measures for these workers. These measures cover life and disability insurance, accident coverage, health and maternity benefits, and old age protection. Additionally, the Code proposes establishing a Social Security Fund to support welfare schemes.

Policy Development and Suggestions

Mandaviya chaired a meeting with representatives from various associations of gig and platform workers earlier in the day. He stated that the ministry is working on providing social security and health services or insurance through the new policy. The minister assured that this policy would be legally binding nationwide.

Several suggestions have been made, including creating unique identity numbers for social security benefits. Some proposed collecting contributions from transactions or imposing a cess to fund these schemes. The ministry is considering all suggestions since there is no traditional employer-employee relationship in this sector.

A significant challenge is determining who will contribute to social security schemes for these workers. The absence of a clear employer complicates funding contributions. The ministry is exploring various options to address this issue effectively.

The Niti Aayog report also highlights global approaches to social protection for gig workers. These insights could inform India's strategy for implementing social protection measures under the Social Security Code 2020.

The provisions of the Code are yet to be enacted, but they aim to register unorganised, gig, and platform workers under Section 113. This registration is crucial for extending social security benefits to these workers once the Code becomes effective.

Mandaviya's efforts reflect a commitment to ensuring gig and platform workers receive necessary protections. As this sector grows, implementing robust social security measures becomes increasingly important for worker welfare across India.