Gig Workers

Context:

The Labour ministry plans to release a “Framework for social security coverage” by June 2023.

Key Findings:

• Features
  • The new framework may introduce unique identity numbers for gig workers, which will allow them to be easily integrated into platforms and access social security.
  • The benefits suggested are health cover, life and disability cover, accident cover, and pension cover.
• Definition of gig Worker
  • It shall not be easy to define gig workers and those who will be contributing towards social security schemes as there is no traditional employer-employee relationship.
    • A gig worker is a person who does temporary or freelance work, especially an independent contractor engaged on an informal or on-demand basis.

Government Initiatives Toward Workers’ Welfare in India

• Code on Social Security, 2020:
  • It proposes several social security schemes for the gig and platform workers, such as schemes for life and disability benefits, accident insurance, health and maternity benefits, and old-age protection.
  • e-Shram Portal:
    • An integrated national unpublished workers’ database covering almost 400 occupations.
  • Draft Model Standing Orders, amended under the Industrial Relations Code, 2020:
    • Service, Manufacturing, and Mining sectors.
  • Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Scheme (2019):
    • Old age protection to unorganized workers with a defined pension post 60 years of age at Rs. 3,000/month.
    • Eligibility:
      • Workers with ages between 18-40 years who have a monthly salary of Rs 15,000 or less should not be a member of EPFO/ESIC/National Pension System.
    • Contribution:
      • By workers at 50% to monthly premium, matching this contribution with the government.