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In Summary

  • Gig and platform workers in India, numbering 10 million, are projected to reach 23.5 million by 2029-30, driven by urban consumption and flexible work models.
  • Challenges include income volatility, occupational hazards from aggressive delivery timelines, social vulnerability due to lack of insurance and pensions, and algorithmic management issues.
  • The Code on Social Security, 2020, aims to provide a safety net, including social security benefits for workers engaged for at least 90 days, alongside schemes like PMSBY and state-level interventions.

In Summary

Delivery workers of the platforms like Swiggy, Zomato, Blinkit, and Zepto went on strikes on New Year’s Eve, calling for a ban on 10-minute deliveries.

About Gig Economy in India

  • As per Code on Social Security, 2020, it means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.
  • Broadly classified into 2 categories:
    • Platform based: Whose work is based on online software apps or digital platforms. E.g., delivery workers of Zomato.
    • Non-platform based: Casual wage workers in conventional sectors, working part-time or full-time. E.g., domestic workers.
  • Scale: India has around 10 million gig and platform workers, which is expected to rise to 23.5 million by 2029-30.
  • Drivers of growth:
    • Demand-side: Urban consumption, proliferation of quick commerce digital platforms, etc.
    • Supply-side: Flexible work models, attractive remunerations.

Challenges with Gig Economy

  • Income Volatility: Declining per-order payouts and low base pay lead to reduced income stability.
  • Occupational Hazards: Aggressive delivery timelines (e.g., 10 minute delivery) increase accident risks and stress.
  • Social Vulnerability: Absence of assured health insurance, accident cover, and pensions.
  • Coverage Gaps: Existing social security proposals (like the 90-day rule) are criticized for being restrictive.
  • Algorithmic Management: Algorithmic Opacity in order allocation,"de-platforming" workers, and limited collective bargain.

Steps taken for welfare of Gig Workers

  • Code on Social Security (2020) provides a formal safety net.
    • Inclusion Criteria (90-day rule): gig workers engaged for at least 90 days a year (or 120 days across multiple platforms) are now eligible for formal social security benefits like health and accident insurance via the e-Shram portal and Ayushman Bharat.
  • Pradhan Mantri Suraksha Bima Yojana (PMSBY): All eligible registered unorganised workers including gig workers are entitled to get benefit of an accidental insurance cover of Rs. 2.0 Lakh for a year.
  • Legal interventions by State Governments: Rajasthan Platform-Based Gig Workers Act, 2023, etc.
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Rajasthan Platform-Based Gig Workers Act, 2023

A state-specific legislation enacted by Rajasthan to regulate the working conditions and social security of platform-based gig workers within the state, reflecting localized efforts to address the challenges of the gig economy.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

An accident insurance scheme offered by the Indian government that provides accidental death and disability cover to all bank account holders aged 18-70 years. Eligible registered unorganized workers, including gig workers, can benefit from this scheme.

Ayushman Bharat

A flagship scheme of the Indian government that aims to achieve Universal Health Coverage. It encompasses two major components: Health and Wellness Centres (HWCs) and the Pradhan Mantri Jan Arogya Yojana (PMJAY), providing health insurance and access to healthcare services.

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