The Indian government is advancing plans to provide a comprehensive social security net for the nation's burgeoning gig and platform economy workers. This initiative aims to cover essential benefits such as accident insurance, health coverage, maternity support, and old-age protection.
e-Shram Portal Integration Deadline Looms
To ensure a seamless rollout of these welfare measures, the government has mandated that platform companies integrate their worker databases with the e-Shram portal by June 22. This integration is critical for enabling workers to access the new benefits effectively.
Implementing the Code on Social Security
Ashutosh Pednekar, Joint Secretary and Director General (Labour Welfare) in the Ministry of Labour and Employment, addressed stakeholders at a consultation organized by FICCI. He confirmed the government's active implementation of provisions under the Code on Social Security, designed to establish a formal safety net for this sector.
Rapid Growth of India's Gig Economy
India's gig economy has experienced significant expansion, driven by sectors like food delivery, ride-hailing, logistics, e-commerce, and freelance digital services. Pednekar noted that approximately one crore (10 million) workers are currently engaged in the gig and platform economy, a number projected to surge to around 2.5 crore (25 million) by the end of the decade.
Highlighting the strategic importance of this sector for India's labor market, Pednekar also announced the government's approval to operationalize the National Social Security Board for Gig and Platform Workers. This board is expected to be instrumental in developing and overseeing initiatives aimed at enhancing financial security and social protection for workers who often lack traditional employment benefits.
Dedicated Social Security Fund in Progress
Further bolstering its commitment, the government is in the process of operationalizing a dedicated Social Security Fund. This fund will be a primary financing mechanism for the welfare measures targeted at gig and platform workers. Officials are currently consulting with stakeholders and fund managers to finalize the framework for benefit delivery.