The Code on Social Security, 2020 defines a gig worker as a person who works outside a traditional employer – employee relationship. The gig economy refers to a labour market characterised by short-term, task-based and flexible work arrangements, often mediated through digital platforms such as Ola, Uber, Swiggy and Urban Company.
Key Features of gig economy:
- Includes platform-based and non-platform gig workers
- Driven by digitalisation, urbanisation and flexible work preferences
- In India, gig workers numbered 77 lakh in 2020–21 and are projected to reach 2.35 crore by 2029–30 as per the NITI Aayog.
Challenges faced by Gig Workers:
- Income Insecurity: Absence of minimum wage protection. About 50% fail to earn statutory minimum wages as per Fairwork India.
- Lack of Social Security: Exclusion from pensions, health insurance and paid leave and over 82.5% are informal workers as per NITI Aayog.
- Job Insecurity: Easy deactivation by platforms without due process
- Health Risks: 47% work more than 12 hours/day and 60% work all 7 days as per TISS survey.
- Algorithmic Control: Opaque algorithms determine pay, ratings and work allocation
- Weak Collective Bargaining: Fragmented and individualised nature limits unionisation
Government Measures for Gig Workers:
- Code on Social Security, 2020:
- Legal recognition of gig and platform workers
- Provision for life, disability and accident insurance through welfare schemes
- e-SHRAM Portal, 2021: National database for unorganised and gig workers to enable access to welfare schemes
- National Social Security Board: Recommends and monitors social security schemes for gig workers
- State-Level Initiatives:
- Rajasthan Platform-Based Gig Workers Act, 2023 – welfare cess on aggregators
- Karnataka Gig Workers Bill, 2024 – proposes a Gig Workers’ Welfare Board
- Skill Development & Digital Inclusion: Training under Skill India and Digital India initiatives
Conclusion:
The gig economy is emerging as a key driver of employment in India, but its sustainability depends on ensuring income security, social protection and platform accountability. Strengthening regulatory safeguards while preserving flexibility is essential to ensure dignified and inclusive growth of gig work.
‘+1’ Value Addition:
- India’s gig workforce is projected to reach 2.35 crore workers by 2029–30 (NITI Aayog).
- Gig economy transactions in India may touch USD 250 billion by 2030, contributing about 1.25% of GDP as per NITI Aayog.
- Over 82.5% of gig workers are informal, with limited labour protection and social security (NITI Aayog).
- Around 50% of platform workers do not earn statutory minimum wages (Fairwork India Report).
- 47% of gig workers work more than 12 hours a day and 60% work all 7 days a week, raising health and safety concerns (TISS).
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