Issues with Gig Workers in India 

Syllabus: GS3/Economy

In Context

• Gig and platform worker unions have called for a strike, protesting the denial of basic labour rights and alleged exploitation by food delivery and taxi platforms. 

What is the Gig Economy?

•  According to the World Economic Forum, The gig economy involves short-term, task-based work facilitated by digital platforms connecting workers with customers. 
• In India, gig workers are defined as “self-employed” workers, and the gig labour force has seen increasing participation of women. 
• Gig workers provide a wide range of services like driving, beauty, housework, food delivery, etc.
  • They are paid per assignment or gig, and their work is viewed as flexible with freedom from the traditional 9 to 5 office culture.
• Types
  • Web-based gig work – Gig workers perform their tasks virtually or digitally like content writing, software development, digital marketing, data analytics, etc. 
  • Location-based work – Tasks are carried out locally or in person but are facilitated by digital platforms like Ola, Uber, Zomato, and Urban Company. 

Advantages of Gig and Platform Work

• Flexibility: Workers can choose hours and tasks, balancing personal and professional commitments.
• Income opportunities: Provides livelihood to millions, especially youth and women, without requiring formal qualifications.
  • Women may earn more in gig work and can balance domestic and professional responsibilities.
• Skill development: Exposure to digital tools and customer service enhances employability.
•  Economic contribution: Gig economy supports sectors like logistics, e-commerce, and urban mobility, contributing to GDP growth.

Challenges Faced by Workers

• Lack of social security: Most workers are outside traditional labor protections.
  • Lack of adequate labour regulations exposes workers to exploitation.
• Income insecurity because Earnings fluctuate with demand-
• Health and safety risks: Delivery and transport workers face accidents, long hours, and inadequate insurance.
  • Vulnerable to extreme conditions (e.g., 2024 heatwave) and unsafe working environments.
• Absence of collective bargaining: Fragmented workforce limits negotiation power with platforms.
• Gender disparities: Women face safety concerns and lower participation rates compared to men.

Steps Taken in India

• The Code on Social Security, 2020 marked the first formal recognition of gig and platform workers in law, entitling them to benefits such as accident insurance, health and maternity cover, and old-age protection. 
• The government launched the e-Shram portal in 2021 to create a national database of unorganised workers.
  • The portal has registered over 30.98 crore workers, including 3.37 lakh gig and platform workers.
• In the Union Budget 2025-26, the government announced a plan to extend Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) benefits to platform workers.
• Government is also working on setting up a Social Security Fund with contributions from the Centre, state governments, and digital platforms to support gig workers 
• States like Rajasthan, Karnataka, and Telangana have introduced their own legislation: Rajasthan’s 2023 Act requires employers to contribute a monthly welfare cess, while Telangana’s 2025 draft bill mandates registration of gig workers by employers and aggregators to ensure social security and welfare benefits.

Conclusion and Way Forward 

• India’s gig and platform economy is expanding rapidly, offering flexibility and new income opportunities, but workers face challenges like lack of social security, income instability, and absence of formal contracts.
• Therefore there is a need for comprehensive data on gig workers to understand their socio-economic conditions and working patterns
• While policymakers highlight technological progress and workforce flexibility, it is crucial to ensure minimum wages, social security, collective bargaining rights, and protection against algorithmic biases and arbitrary account deactivations. 

Source :TH