Poor Social Security Benefits for Gig Workers

Access to internet has created multiple flexible livelihood opportunities but is also exposing these workers to a risk of poor social security.

The digital platform economy has seen fast-paced growth in India in the past decade. These platforms have opened up varied livelihood opportunities for individuals across demographics. It is expected to provide flexibility in terms of work culture and help in formalising the informal sector.

These new jobs are being dominated by the gig economy workforce, which is limited by its access to skills, the undefined or uncertain nature of employment, uncertain policy support, and lack of social security. Alongside, out of the four recent labour codes for workers, only the code on social security contains provisions for gig workers.111 However, even these codes are contentious on the cover provided, the role aggregators play, as well as several other crucial parameters.112 This leaves gig workers without any minimum wage, and occupational safety and social security benefits. There have been multiple strikes by app based drivers across different cities between 2017-2022 and no solutions have been reached yet.113

Gig Work consists of temporary or project-based economic activities outside of standard, long-term employer-employee relationships. This consists of an umbrella of a large group of temporary work which can be either offline or online.116

David lives in Raipur and works as a car driver for a cab sharing platform.

of India’s app based transport gig workforce surveyed have no form of insurance.

His family lives in a village near Bastar and he is the only earning member in his family of five. He also took a loan to buy a secondhand car, which he drives through the platform for his living. He works for 15 hours a day so that he can ensure monetary incentives and send that money home.

India’s implemented laws and legislations provide for security protections for gig workers. wage or

One of these days, he met with an accident and faced a medical emergency. Since he did not have a medical insurance, all his savings went in hospital bills. He and his family faced a tough time during his recovery period.

Over the past six years, the system’s response to gig workers’ rights has evolved from the latent to the emerging stage. There is a growing recognition of rights for platform gig workers, globally and in India. Civil society, mainstream media, and regulatory discussions have picked up significantly, but there are limited solutions.

2016 status: The platform economy had not picked up significantly in India. The risk of social security for gig workers had not been well identified and there were no discussions on the same.

2022 status: As the gig economy has grown over the past six years, there have been multiple strikes and related civil society discussions. Mainstream media has covered gig workers’ rights and discussions have picked up in the public sector as well.

The strike started in Hyderabad and spread across other metro cities. The demand was to ensure better rates and insurance.117

For improving the labour laws in the country, the GoI presented and passed the Code on Social Security, 2020 which mentions ‘gig workers’ and ‘platform workers.118

The UK SC gave a ruling that Uber drivers should be treated as workers and not independent contractors, hence granting them all social security benefits.119

The Indian Federation of App-based Transport workers (IFAT) has filed a petition in the Supreme Court seeking social security benefits from their companies such as Ola. Uber, Zomato, and others.120

NITI Aayog’s report on the Gig Economy

NITI Aayog’s report on ‘India’s Booming Gig and Platform Economy’, acknowledged the challenges faced by gig workers, including the lack of social security and benefits.123

Civil society has actively started discussing the subject and a rights-based vocabulary for gig workers have started to emerge.

There is an increase in policy discussions to provide social security to gig workers.

Back in 2016, very limited discussions on social security of gig workers existed. However, discussions by civil society have been extensive in the recent years, including those with the government. Media houses such as The Ken, Entrackr, Inc42, and others, have also covered issues of minimum wage, workplace conditions and social security for workers extensively.121

In 2016, Indian policies and regulations did not cover any social security for gig workers. However, now the Code on Social Security, 2020 has created the potential of establishing social security measures for gig workers in the sector. The codes have not yet been implemented as the rules are getting finalised.122