By J P GUPTA
New Delhi :In a landmark move, the Indian government has introduced a new draft social security code that will recognize gig economy workers and require companies in this sector to contribute to a dedicated social security fund. Approved by the Union Cabinet, the code will be presented in Parliament next week, marking a significant shift for workers in platforms like Swiggy, Uber, Ola, and Zomato, who have historically lacked social security protections.
The draft Bill proposes that gig workers be eligible for a range of benefits, including life and disability cover, health and maternity benefits, old-age protection, and more. For the first time, they will also be covered by the Employees’ State Insurance Corporation, offering a safety net typically reserved for traditional employees.
Gig economy workers, who often face unstable incomes and unsafe working conditions, will now have legal access to basic protections, as the new code includes provisions for insurance benefits and other welfare schemes. This comes after years of advocacy for greater worker rights within this sector, where workers are classified as “partners” rather than employees, limiting their access to protections like the employees’ provident fund.
The new social security code will streamline existing labor laws and provide a more inclusive framework for India’s vast unorganized workforce. The code mandates that gig economy platforms contribute up to 2% of their annual turnover to the newly established social security fund. This proposal is in line with recommendations made by the Parliamentary Standing Committee on Labour, who first examined these changes in 2019.
With this move, India is taking an important step toward securing the rights of millions of gig workers, who have often fallen through the cracks of traditional labor laws.
