Labour Min mulls scheme for gig, platform workers

The Ministry of Labour & Employment is working on a scheme to provide various benefits like social security to gig and platform workers in the country, a senior official said on Wednesday.

Addressing the CII Global Economic Policy Forum, Union Labour Secretary Sumita Dawra said the labour code on social security has outlined social security benefits for them.

"We are putting together the scheme for the gig and platform economy workers because there is no traditional employer-employee relationship defined for the gig and platform workers but we need to bring social security coverage for them so that they can be more productive and support the country's economy and the e-commerce and services sector more effectively," she said.

In October, Union Labour Minister Mansukh Mandaviya said that a policy for providing social security benefits like pension and health services to gig and platform workers is under process.

He had also said that as per Niti Aayog's estimate, there are 65 lakh gig and platform workers in the country, but the number is likely to be over 2 crore as this segment is growing very fast.

Dawra also stated that by 2030, the ministry expects more than 3 crore workers in the gig and platform economy.

She also acknowledged that the ministry is aware that almost a crore workers are there in the gig and platform economy and it is going to grow further.

For the first time, the definition of 'gig workers' and 'platform workers' has been provided in the Code on Social Security 2020.

As per an estimation by Niti Aayog in its report titled 'India's Booming Gig and Platform Economy' published in June 2022, the number of gig workers and platform workers in the country was 7.7 million in 2020-21, which is expected to rise to 23.5 million by 2029-30.

About the impact of artificial intelligence (AI) on jobs in the country, she stated that "our sense is that AI is something which probably should be adding to jobs as we see in the auto sector for example we do have robots which have been brought in but then the same labour force has been redeployed to an area where training to use those robots or to maintain that machinery is happening."

She was of the view that there are experts who are indicating that AI need not necessarily disrupt the employment scenario in a negative manner so do look forward to the positive impact of AI on the economy.

She stated that India is a solution to the global labour shortages and as per RBI provisional estimates, the country has a 643 million strong workforce.

There is a fast formalisation of the workforce, they are entering into social security coverage and since 2017 last few years about 7 crore Indians have entered the provident fund pension coverage, he pointed out.

About the Employees' Linked Incentive (ELI) Scheme, she stated that it was announced in the Budget and is an important scheme that will support manufacturing and formalisation of the labour force.

"I do hope that the industry will be looking at this scheme and will be using it to make themselves more competitive," she stated.