India Gears Up to Provide Social Security and Pension Benefits for Gig Workers

With the gig economy rapidly expanding in India, the government is taking significant steps to ensure the financial and social security of gig workers, including app-based drivers, delivery personnel, and other platform-based workers. The Finance and Labour Ministries are working together to introduce healthcare, pension, and social security benefits for nearly one crore gig workers under various welfare schemes.

Healthcare & Social Security Initiatives
The government is planning to integrate gig workers into the Prime Minister’s Jan Arogya Yojana (PM-JAY), ensuring they receive proper medical benefits. A dedicated identification and registration system will be set up via the e-Shram platform, allowing gig workers to access essential social security schemes. The initiative may be fully funded by the Centre or follow a 60:40 cost-sharing model between the Centre and the states.
Additionally, the National Human Rights Commission (NHRC) has raised concerns about the challenges faced by gig workers, highlighting long working hours, mental stress, unfair rating systems, and safety risks for women workers. It has recommended the implementation of the Social Security Code, 2020, to improve their working conditions.

Pension Plan for Gig Workers
To provide long-term financial security, the Labour Ministry is preparing a proposal to extend Employees' Provident Fund Organisation (EPFO) pension benefits to gig workers. The plan includes a mandatory pension contribution system, similar to salaried employees, where a percentage of workers’ earnings will be deposited into a pension fund. The government is also exploring ways to incentivize e-commerce and service-based companies to contribute toward their workers’ pension plans.

Key Challenges and Solutions
•    Work Hours & Mental Stress: Studies show that 83% of gig workers work over 10 hours a day, leading to both physical and mental stress. The government is considering work-hour regulations to protect their well-being.
•    Safety of Women Gig Workers: Women face increased safety risks, particularly when working at night. There is a growing demand for better security measures and safer working conditions.
•    Unregulated Rating Systems: Many gig workers are unfairly penalized by arbitrary rating mechanisms that impact their earnings. The NHRC has called for a more transparent and fair rating system.

The Road Ahead
The number of gig workers in India is projected to rise to 2.35 crore by 2029-30, making it essential to integrate them into structured welfare programs. The government’s move to include them in healthcare, pension, and social security schemes marks a crucial step toward ensuring their rights and well-being. The proposal is currently under review and, once finalized, will provide a much-needed safety net for gig workers across the country.