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The Centre is planning to launch a social security scheme for platform-based gig workers
Platforms such as Zomato, Swiggy, Ola, Uber and others will be required to deduct a specific amount from wages of such workers and deposit it into an employees’ pension scheme
Besides, the government is also likely to pitch in an extra 3-4% of the amount deposited by these platforms
The Centre is planning to launch a social security scheme for platform-based gig workers in a move that seeks to protect their rights and place obligations on food delivery and ride-hailing companies employing such workers.
Upon implementation, platforms such as Zomato, Swiggy, Ola, Uber and others, which have traditionally onboarded gig workers not as employees but as ‘partners’, will be required to deduct a specific amount from their wages and deposit it into an employees’ pension scheme, The Times of India reported.
“We are financial the details and hope to operationalise it soon,” the report cited a senior labour ministry official as saying.
Besides, the government is also likely to pitch in an extra 3-4% of the amount deposited by these platforms.
Through the initiative, the government aims to ensure the social security and welfare of not only platform-based workers but also software professionals and other gig economy workers.
This comes against the backdrop of reports saying that the union ministry of labour and employment was drafting a framework to incorporate gig economy workers into social security schemes to offer benefits such as health insurance and retirement savings.
While regulating social security for gig workers was a key aspect of the labour codes enforced a few years ago, but they are yet to be implemented as several states are not onboard.
The proposed legislation also mandates the registration of gig workers by platforms employing them and requires them to give a 14-day notice with valid reasons before termination.
In a ground-breaking moment, women gig workers called India’s first nationwide digital strike in November 2024 in an attempt to highlight alleged exploitative and abusive labour practices.
While platforms like Zomato, Swiggy, Uber and Ola tend to roll out countless discount offers, particularly during the festive season, these discounts allegedly come at the expense of the wages of gig workers.
The plight of gig economy workers has been captured in several surveys with an app-based study revealing last year that cab drivers work long hours for low wages with 68% of respondents saying their expenses exceeded their earnings.
Recently, the Reserve Bank of India launched a pilot in partnership with digital lender Vivifi Finance to offer unsecured loans to gig workers.
