India’s government has announced social security benefits, including healthcare, for about 10 million gig workers in its latest budget, in a boost to a growing workforce that is demanding greater social and labour rights.
Presenting the annual budget, Finance Minister Nirmala Sitharaman hailed gig workers employed through platforms like Amazon, Uber and India’s Zomato.
“Gig workers of online platforms provide great dynamism to the new-age services economy,” she told parliament on Saturday.
India is one of the largest and fastest-growing markets for the gig economy, with nearly 8 million workers in 2020-21, and forecast to expand to 24 million workers by 2029-30, according to government think-tank NITI Aayog.
But as the platform economy has grown, so have concerns about low wages, the lack of protections, limited flexibility and the opaque nature of algorithmic management that can result in random job assignments and ratings, and account deactivation.
Women are particularly vulnerable, with research showing algorithms were found to discriminate against those unable to respond as quickly or work as many hours because of unpaid care responsibilities.
Here’s everything you need to know about the latest measures:
What benefits were announced in the budget?
The government said it would provide identity cards and register all gig workers on a national database for the unorganised sector, which would not only formally recognise them, but also help with better access to health, housing, skill, insurance, credit, and food schemes.
They will also be provided medical insurance under what is touted as the world’s largest healthcare programme, offering free treatment for serious illnesses and already providing poor families with an annual cover of 500,000 rupees (US$5,724).
Is this the first time steps have been taken for gig workers?
No. India’s western Rajasthan state approved a bill in July 2023 to impose a surcharge on online transactions via platforms like Amazon, Zomato and Urban Company to fund welfare benefits for gig workers, the first such scheme in the country.
The southern states of Karnataka, Tamil Nadu and Telangana have also made moves to provide benefits, register gig workers and hear grievances.
At the national level, Prime Minister Narendra Modi’s administration got parliament’s approval in 2020 to amend labour laws, including a new Social Security Code, that proposed a social security fund for gig workers through contributions from aggregators.
However, implementation has been deferred after opposition from some companies and unions.
What has been the reaction to the latest measures?
While labour rights activists and unions have welcomed the budget announcements, they urged the government to ensure strict implementation and accountability by making it mandatory for platform companies to register workers and contribute towards social security schemes.
Shaik Salauddin, founder of the Telangana Gig and Platform Workers Union, said gig workers’ struggle for enforcement of a dedicated law and effective implementation of welfare schemes at the national level continued.
Jairam Ramesh from India’s main opposition Congress party described the announcements as “half-hearted steps”, echoing Salauddin’s calls for a national framework for gig workers.
“As much as state governments can do, India needs a national legal and social security architecture for gig workers,” he posted on X. “Government’s halting steps are far from enough.”
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