GS-3:Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment;Inclusive Growth and issues arising from it.

In News:Ensuring a proper social safety net for the gig worker

2.What are the key challenges faced by gig workers in India in accessing social security benefits compared to formal sector workers? What strategies can be employed to overcome these obstacles and ensure that all workers have equitable access to social security schemes?

Defined under the Code on Social Security, 2020, a gig worker is someone who performs work outside of a conventional employer-employee relationship. According to NITI Aayog reports, the gig workforce in India is projected to significantly expand, reaching an estimated 23.5 million workers by the year 2029-30.

Challenges faced by gig workers:

1. Lack of formal recognition: Gig workers are often classified as independent contractors rather than employees, which excludes them from traditional labour protections and benefits provided under laws like the Employees’ Provident Funds and Miscellaneous Provisions Act.
2. Limited access to existing schemes: Although the Code on Social Security, 2020 aims to include gig workers, many existing social security schemes primarily cater to formal sector employees hence often lack access to essential benefits such as health insurance, maternity leave, and retirement plans.
3. Limited bargaining power: Gig workers may have limited bargaining power with aggregators, making it difficult to negotiate for better terms and conditions, including social security benefits.
4. Lack of union representation: Many gig workers are not represented by unions, which can limit their ability to advocate for their rights and interests, including social security benefits.
5. Digital divide: Limited access to technology and internet connectivity creates barriers for gig workers in accessing digital platforms for benefits.
6. Inadequate budgetary support: Insufficient funding for social security programs limits their effectiveness and reach for gig workers.
7. Vulnerability to economic shifts: Fluctuating demand for gig work leads to job insecurity, making consistent contributions to social security challenging.
8. Geographical Mobility: Gig workers often have a high degree of geographical mobility, which can make it difficult to track their employment and ensure that they are enrolled in appropriate social security schemes.

Strategies to overcome challenges and ensure equitable access:

1. Redefine the Employment Relationship: The government should redefine the employment relationship between gig workers and aggregators to recognize them as workers rather than independent contractors. This would make it easier to apply existing labour laws and social security regulations.
2. Expand social security coverage: The government should expand social security coverage to include gig workers, regardless of their employment status.
3. Mandate aggregator contributions: Aggregators should be mandated to contribute to a social security fund for their gig workers. This would ensure that workers have access to benefits even if they are not directly employed by the aggregator.
4. Promote Unionisation: Efforts should be made to promote unionisation among gig workers to give them a stronger voice and bargaining power. Unions can advocate for better working conditions and social security benefits for their members.
5. Improve Data Collection and Tracking: The government should improve data collection and tracking of gig workers to ensure that they are enrolled in appropriate social security schemes and to monitor their working conditions.
6. Create dispute resolution mechanisms: Effective dispute resolution mechanisms should be established to help gig workers resolve disputes with aggregators and to protect their rights.
7. Educate gig workers: Gig workers should be educated about their rights and the social security benefits available to them. This will help them to understand the importance of enrolling in social security schemes and to advocate for their rights.
8. Mandatory employer contributions: Enforce contributions from employers hiring gig workers to ensure they receive benefits.
9. Investment in Digital Infrastructure: Improve access to technology and internet connectivity in underserved areas.
10. Enhanced Budgetary Allocations: Increase funding for social security schemes aimed at gig workers to improve effectiveness.

To ensure equitable protections for gig workers in India, it is essential to implement comprehensive policies that recognize their employment status and improve access to social security benefits.

PYQ

1. Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market reforms in India. What has been the progress so far in this regard? 2024

Source:

https://www.thehindu.com/opinion/op-ed/ensuring-a-proper-social-safety-net-for-the-gig-worker/article68753585.ece#:~:text=The%20proposed%20legislation%20will%20establish,ensuring%20transparency%20in%20automated%20systems.