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Social Security Framework
Context:
The government is set to introduce a social security framework for gig and platform workers within the next four to five months, targeting the fast-growing labor segment.
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- Despite delays in implementing the four labor codes approved in 2020/2021, the initiative aims to provide much-needed social protections.
Key Highlights
- Social Security Framework Development: The framework is being designed to offer gig and platform workers benefits such as health and life insurance, accident insurance, and pension coverage.
- A dedicated committee chaired by the Central Provident Fund Commissioner (CPFC) of EPFO is developing the framework.
- The plan may invoke provisions of the Code on Social Security (CSS) or introduce a separate scheme, with implementation likely before the labor codes are officially notified.
- Gig Worker Statistics and Projections: As per NITI Aayog, India had 7.7 million gig and platform workers in 2020-21, expected to rise to 23.5 million by 2029-30.
- Unique Identity System for Gig Workers: A unique identity, akin to Aadhaar, is proposed for gig workers to consolidate details such as monthly earnings and work history.
- This data will aid companies like Zomato, Swiggy, and Urban Company in managing gig workers and will support insurance and pension schemes.
- Insurance and Pension Provisions: Monthly earnings data of workers will be used to design insurance and pension benefits.
- A portion of their earnings could be set aside to fund these schemes.
- Stakeholder Consultations: The Ministry of Labour and Employment has conducted extensive consultations with platform worker organisations, state governments, and aggregators to ensure a comprehensive approach.
- A collaborative study with the International Labour Organisation (ILO) is underway to assess the requirements and challenges.
- Existing Legal Provisions and Recommendations: The Social Security Code, 2020, already recognises gig workers and permits welfare schemes for them.
- Provisions like PM Shram Yogi Maandhan (pension) and PM-JAY (health insurance) could be extended to gig workers without waiting for labor codes’ full implementation.
- Establishing a social security fund, contributed to by aggregators based on work utilisation, is under consideration.
Challenges and Expert Opinions
- Legal amendments to the Unorganised Workers’ Social Security Act, 2008, to include gig workers explicitly are unlikely since the CSS is already in place.
- Experts highlight the need to balance commercial realities for employers with providing robust social protection for workers.
Way Forward
- The framework is expected to align with the government’s focus on enhancing worker welfare while supporting India’s rapidly growing gig economy.
- By addressing the social security needs of gig workers, this initiative aims to build a more inclusive and sustainable labor ecosystem in India.
- This comprehensive framework seeks to bridge the gap between gig workers’ welfare and the evolving dynamics of the gig economy, ensuring social protection for a significant segment of the workforce.
