What are Gig workers ?

Why in News? A recent roundtable organized by Janpahal, a non-governmental organization, in collaboration with the Gig Workers Association, has drawn attention to the challenges faced by gig and platform workers. Titled “Current Developments, Challenges, and Way Forward,” the discussion emphasized the harsh working conditions, lack of legal protections, and absence of social security for gig workers, despite the rapid expansion of the gig economy.

Key Points

• Roundtable Overview:

• • Organized by Janpahal and Gig Workers Association on May 15, 2025, to foster dialogue among stakeholders.
  • Attendees included representatives from Union and State governments, international organizations, and gig workers.
  • Aimed to identify solutions for gig workers’ rights within existing policy frameworks.

• Demands and Recommendations:

• • Establish a tripartite welfare board in all states and at the central level, with representatives from employees, employers, and governments, to oversee gig workers’ welfare.
  • Ensure minimum wages/income based on logged-in hours to address income instability.
  • Stop the continuous reduction in rate cards and ensure surcharges collected from consumers are fairly shared with workers.
  • Urged the Centre to declare a social security policy for online platform workers, providing benefits like health insurance, pension, and maternity coverage.
  • Highlighted the need for legal protections to prevent arbitrary terminations and ensure grievance redressal mechanisms.

• Workers’ Challenges:

• • Workers shared testimonies of harsh realities, including dictatorial attitudes from companies, ID blocking, and terminations for minor or no mistakes.
  • Lack of avenues for redress and societal disrespect exacerbate their struggles.
  • Most gig workers remain unorganized, with companies actively thwarting unionization efforts by terminating workers who protest or organize.

• Policy Context:

• • Aligns with the Code on Social Security 2020, which mandates social security schemes for gig workers but lacks full implementation.
  • Builds on state-level initiatives like Rajasthan and Karnataka laws, which establish welfare boards and funds (e.g., aggregators contribute 1-2% of revenue to a social security fund).
  • Complements the Union Budget 2025-26, which extended Ayushman Bharat PM-JAY healthcare coverage to gig workers and proposed pension benefits through the Employees’ Provident Fund Organisation (EPFO).

• Outcome:
  • The meeting’s recommendations will be sent to policymakers to advocate for a more equitable gig economy, addressing systemic exploitation and ensuring workers’ rights.

What are Gig Workers’?

Gig workers in India, as defined by the Code on Social Security 2020, are individuals who perform work or participate in work arrangements outside traditional employer-employee relationships, earning through temporary, flexible jobs.

• They include platform workers (e.g., those on apps like Uber, Zomato, Swiggy) and non-platform workers (e.g., construction, day laborers). Their contributions to the economy and society are significant, yet they face challenges in accessing social security and legal protections.

• Economic Contributions:

• • Service Sector Growth: Gig workers drive India’s new-age services economy, supporting platforms like Ola, Uber, Zomato, and Swiggy, which enhance consumer convenience and expand market reach. The service sector’s rapid shift to digital platforms relies heavily on gig workers for last-mile delivery, transportation, and other services.
  • Workforce Scale: As per the NITI Aayog Report 2022, gig workers numbered 7.7 million in 2020-21, projected to grow to 23.5 million by 2029-30, forming 4.1% of India’s total workforce and 6.7% of the non-agricultural workforce.
  • Flexibility and Innovation: They provide flexible labor to businesses, enabling scalability without long-term commitments, and foster innovation in the gig economy, which contributes to GDP growth through digital platforms.
  • Skill Diversity: About 47% of gig work is in medium-skilled jobs (e.g., delivery, transport), 22% in high-skilled jobs (e.g., freelance software development), and 31% in low-skilled jobs (e.g., manual tasks), catering to diverse market needs.

• Social Contributions:

• • Employment Opportunities: The gig economy offers income-generating opportunities for millions, especially in urban areas, reducing unemployment and supporting livelihoods for those unable to secure traditional jobs.
  • Empowerment Through Mobility: Data portability (e.g., transferring work history, ratings across platforms) and upskilling initiatives (e.g., collaborations with the National Skill Development Corporation) enable gig workers to transition to higher-paying roles or entrepreneurial ventures, fostering social mobility.
  • Community Support: Gig workers often serve as a lifeline for communities, delivering essentials (e.g., food, medicine) during crises like the COVID-19 lockdowns, as seen with the Indian Federation of App-based Transport Workers (IFAT) organizing protests in 2020 for safety gear.

• Challenges to Contributions:

• • Lack of Social Security: Despite their contributions, gig workers lack institutional protections like minimum wage, health insurance, pension, and maternity benefits, as they are classified as independent contractors, not employees.
  • Exploitation: The roundtable highlighted arbitrary terminations, algorithmic opacity, and rate card reductions, which undermine their economic stability and contributions.
  • Unorganized Nature: Most gig workers are not unionized, limiting their ability to collectively bargain for better conditions, as companies suppress organizing efforts.

Policy Impact on Contributions:

• The Union Budget 2025-26 initiative to provide healthcare via Ayushman Bharat PM-JAY and pension through EPFO (transaction-based, funded by aggregators) aims to secure gig workers’ futures, potentially enhancing their productivity.
• E-Shram Portal 2.0 (launched in October 2024) facilitates registration of platform workers, linking them to benefits like life and accidental insurance, ensuring their contributions are recognized and protected.
• State laws (e.g., Rajasthan and Karnataka) mandate aggregator contributions (1-2% of revenue) to welfare funds, which can finance social security schemes, reducing financial insecurity and enabling gig workers to contribute more effectively.