India plans welfare measures for gig workers ahead of elections
NEW DELHI India plans to introduce welfare measures for "gig" workers employed by platforms such as Amazon, Uber and India's Zomato as Prime Minister Narendra Modi's government prepares for elections, government and union officials said.
The plan, part of a social security code enacted in 2020, could include accident, health insurance and retirement benefits, said a senior government official with direct knowledge of the plan. after the northern state of Rajasthan, ruled by the opposition Congress party, approved the creation of a fund through a surcharge on platform sales."It is urgent to announce relief measures for concert workers," a government official said, referring to meetings with unions, concert platforms and government officials.
Gig workers need state protection in the face of increasing exploitation by employers, said Ashwani Mahajan, an economic official with the Rashtriya Swayamsevak Sangh, a group with close ties to the Modi government.Indian gig workers, those outside traditional employer-employee relationships, are fast becoming an important part of the world's fifth-largest economy as the sector has surged amid COVID-19 restrictions and been bolstered by high unemployment.
The Department of Labor declined to comment on the plans. Labor Minister Bhupender Yadav told lawmakers this week that any program for gig workers could be funded by contributions from federal and state governments, as well as platforms.An industry expert with direct knowledge of the discussion said the platforms have unanimously agreed to the Labor Department's proposal for social security for gig workers and are prepared to contribute to a "transparently" managed welfare fund.
"We expect federal action to be announced in the next few months because players don't want to deal with multiple states." Asked for comment on the proposed scheme and its potential costs, Amazon referred Reuters to media statements on Thursday that the company had created more than 1.3 million jobs for delivery agents and sellers in India, including 140,000 last year, while boosting retail activity small companies.In addition to reputable companies, hundreds of other online platforms and people hiring for piecework would be affected, including services such as cab sharing, retail, food, construction and finance.
There are no official figures on the size of India's gig economy, although private estimates put the number of people employed at between 10 and 15 million. The Boston Consulting Group predicts that by 2021 it will have the potential to create 90 million jobs and annual transaction volumes exceeding $250 billion. By 2030, government think tank NITI Aayog estimates that the gig economy could employ more than 23.5 million, or about 7% of the non-agricultural workforce.
The government has not quantified the cost of the planned welfare measures because it has to get data from companies, said the sources, who did not want to be named because they were not authorized to speak to the media.The government could initially provide gig workers with state-funded health and accident insurance and a grievance redressal mechanism, one official said, while setting up a mechanism for employer contributions to the fund.The measures propose that employers contribute between 1% and 2% of their annual income to the security fund, up to 5% of the amount paid to workers, the sources said.
More than 290 million people have registered with the government's online portal, which aims to issue identity cards to gig workers and other unorganized workers while collecting details such as biometrics and their skills. The government is concerned about the growing number of complaints from gig workers and the social media campaign. against platforms about cuts in commissions and long working hours.
Blinkit, the food unit of food delivery platform Zomato, faced a shutdown in April when hundreds of employees protested over commission cuts."We have no channel to voice our grievances," said Uber driver Sheetal Kashyap, 47, adding that women like her face safety risks and exploitation due to low bargaining power.
Shaik Salauddin, national general secretary of the app-based Transport Workers' Federation of India representing more than 45,000 taxi drivers, said they lobbied political parties for the package ahead of the election."We should be recognized as employees who are entitled to all benefits under labor law, including fixed working hours and decent working conditions."
As India prepares for the upcoming elections, the government's focus on the welfare of gig workers has become a central theme. Concert workers, the backbone of the nation's fast-growing concert economy, often face unique challenges that traditional workers may not. Realizing the need for comprehensive support, the Government of India is taking significant steps to ensure the welfare and rights of these workers, making it a central pre-election agenda.
Gig Workers in India: The Driving Force of the Modern Economy
India's gig economy has seen remarkable growth in recent years, fueled by technology and the changing nature of work. Gig workers, including freelancers, delivery drivers, rideshare drivers and other on-demand service providers, have become an essential part of this dynamic economy.
Social measures: A priority for the government
As the election season approaches, the government is heavily addressing the concerns of gig workers. Plans are being made to create a more supportive environment for these workers and to recognize their vital contribution to the economy. Key aspects of social measures include:
Social safety nets: The government is exploring the possibility of extending social security benefits to gig workers. This includes provisions for health insurance, retirement plans and financial assistance during times of economic uncertainty.Skills Development Initiatives: Empowering gig workers with relevant skills is a top priority. The government plans to work with industry experts to offer skills development programs tailored to the gig economy, increasing the employability and earning potential of these workers.
Fair labor practices: Ensuring fair wages and transparent working conditions are essential. The government is working on guidelines to protect the rights of gig workers and promote ethical business practices within the gig economy.Access to credit: Recognizing the importance of access to credit, especially for those who may face irregular income, the government is exploring ways to make credit available to gig workers and enable them to invest in their future.
Positive impact on and after the elections
These social measures are not just a campaign promise; represent a significant shift in the government's approach to labor and economic policy. The move is expected to draw support from gig workers and their families, a sizable bloc of voters, as well as those who value modernizing labor law and promoting a more inclusive economy.
International comparisons and global trends
India's focus on the welfare of gig workers is in line with a global trend. Many countries are realizing the need to adapt their social and labor policies to accommodate the rise of the gig economy. By introducing these measures, India is demonstrating its commitment to progressive policies that ensure a prosperous and fair working environment for all.
As India approaches elections, the government's proactive approach to welfare measures for gig workers is a promising sign. By addressing the unique needs and challenges faced by gig workers, the government is not only ensuring the support of a key constituency, but is also shaping a fairer and more sustainable future for India's workforce. This initiative is a testament to the government's commitment to modernizing working practices and ensuring the well-being of all its citizens, especially those who contribute to the vibrant gig economy.
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