Gig Workers in India Get Social Security Boost

The recent implementation of the Code on Social Security in India marks a significant milestone for gig workers, including delivery personnel working for major platforms like Amazon, Flipkart, Swiggy, and Zomato. This new legal framework introduces essential protections for these workers who have long been operating without formal security measures. For the first time, gig and platform workers are recognized under a structured system, allowing them to access vital benefits.

The Code enables gig workers to register on a national database, facilitating their access to health insurance, accident coverage, and old-age support. This initiative aims to address the financial invisibility that gig workers face, providing them with rights such as mandatory appointment letters and accident insurance. This is a crucial step toward ensuring that millions of workers receive the social security benefits they deserve.

According to Rishi Agrawal, CEO of Teamlease Regtech, this reform is transformative. He emphasized that gig workers have historically subsidized the growth of the economy from the margins, and now they are stepping into the system with portable benefits and health coverage. The contribution model mandates that aggregators like Amazon and Flipkart contribute 1-2% of their annual turnover to the newly created Social Security Fund, which aims to provide a safety net for these workers.

The establishment of a National Social Security Board will oversee the implementation of suitable schemes for unorganized, gig, and platform workers. The Board will advise the government on various matters, including life and disability coverage and maternity benefits. This proactive approach seeks to ensure that the workforce is protected, especially considering the expected employment of 2.35 crore workers in this sector by 2029-30 according to Niti Aayog.

Moreover, the Code addresses accidents occurring during commutes, treating them as employment-related incidents. This recognition will help workers receive the necessary support in case of mishaps. It’s also noteworthy that platforms are required to collaborate with the government to register all gig workers, ensuring seamless access to benefits using an Aadhaar-linked Universal Account Number.

In conclusion, the Code on Social Security is a game-changer for gig workers in India. It not only provides a safety net for millions but also recognizes their contribution to the economy. As this framework takes shape, it will undoubtedly enhance the livelihoods and security of those who work in this dynamic sector.