The Indian government is gearing up to introduce social welfare measures tailored for gig workers, encompassing those engaged via platforms like Amazon, Uber, and Zomato. This initiative, part of the 2020 Social Security Code, aims to provide accident coverage, health insurance, and retirement benefits to gig employees.
Recognizing the significant contribution of gig workers to India’s economy, especially evident during the pandemic, the government is addressing their concerns and grievances. The surge in worker complaints, including issues like commission reductions and long working hours, prompted the need for these welfare provisions.
The government’s plan involves creating a scheme funded by contributions from federal and state governments. In response to this proposed initiative, Amazon highlighted its substantial job creation in India, particularly for delivery agents and sellers, totalling 1.3 million jobs, including 140,000 in the past year, with a focus on small enterprise retail activities.
This move not only impacts major corporations like Amazon but also extends to various online platforms and the individuals engaged in services spanning ride-sharing, retail, food, construction, and finance.
While the cost of these welfare measures is yet to be finalized, the government is considering state-funded medical and accident insurance, a mechanism for addressing complaints, and employer contributions to a fund. Employers might be required to contribute 1 to 2 per cent of annual revenues or up to 5 per cent of worker payments to the security fund. An online government portal has already garnered registrations from over 290 million people, collecting their details and skill sets.
India’s proposed social welfare for gig workers signals recognition of their significance and seeks to address their grievances. While details are pending, the initiative, part of the Social Security Code, aims to offer vital benefits. With millions registered, it reflects a proactive step towards securing the welfare of those contributing to India’s economy through gig work.
