78% gig workers earn 2.50 LPA says survey; Govt plans to extend them social security benefits

To facilitate the implementation of social security measures, the registration of workers will be undertaken on the eShram Portal and the aggregator companies that employ gig and platform workers will be asked to take the lead in registering their workers on this portal

Representational photo PTI

The Government of India is committed to extending social security benefits to gig and platform workers, Union Minister for Labour & Employment, Dr Mansukh Mandaviya, announced on Sunday while chairing a review meeting in New Delhi. In a significant move aimed at safeguarding the welfare of gig and platform workers, Dr Mandaviya highlighted that the government is actively exploring various avenues to ensure these workers are covered under social security schemes. “Our government is fully committed to the well-being of gig and platform workers, who form a crucial part of our workforce,” the Minister stated. We are working on a comprehensive strategy to provide them with the social security they deserve, he added.

78 per cent of gig workers earn Rs 2.50 lakh per annum

The announcement comes after a recent survey revealed that nearly 78 per cent of gig delivery workers employed with food delivery apps like Swiggy, and Zomato, and other apps like Amazon earn less than Rs 2.50 lakh per annum. India’s gig economy has witnessed significant changes in the delivery profession due to the emergence and growth of various service providers.

The survey, conducted by Borzo (formerly Wefast), polled nearly 2,000 gig workers from cities like Mumbai, Delhi, Bengaluru, Hyderabad, Jaipur, Ahmedabad, Kolkata, Chennai, Pune, Gurgaon, Noida, Lucknow, Indore, Chandigarh, Surat, Udaipur, Amritsar, Vadodara, Thane, Kanpur, Bhopal, Haridwar, Guwahati, Ghaziabad, Faridabad, Kanchipuram, Ludhiana, and tier 3 cities like Pimpri Chinchwad, Rae Bareli, Kalyan, Chhapra, Palghar, Kashipur, Nashik, Jalandhar, Baghpat, Saharanpur, Mohali, Nadiad, and Rohtak.

The survey, which covered over 2,000 workers employed by companies such as Zomato, Swiggy, Uber, and Amazon across 40 cities, focused on the financial challenges faced by these workers and their level of tax awareness. Gig workers, also known as independent contractors, are individuals who undertake temporary or short-term work assignments, primarily within the service sector. It is important to note that these workers work independently and are not considered employees of the organisations they provide services for. As a result, they do not typically have access to the usual employee benefits that full-time employees receive.
The Tax Matters survey findings highlighted the lack of tax awareness among workers, with 61% admitting unfamiliarity with income tax brackets while only 39% claimed awareness of their tax status. Worryingly, only 33.5% of gig workers have filed income tax returns, indicating that 66.5% have not yet fulfilled this obligation.

Registration on the eShram Portal

To facilitate the implementation of social security measures, the registration of workers will be undertaken on the eShram Portal, and the aggregator companies that employ gig and platform workers will be asked to take the lead in registering their workers on this portal. An online window will be made available for aggregators to ensure a smooth and efficient registration process. Union Minister also underscored the importance of the Code on Social Security, which, for the first time, defines gig and platform workers in India. “This is a significant step towards acknowledging and formalising the roles of gig and platform workers within our economy,” he noted.

The government is also committed to inclusive growth and the empowerment of all sections of the workforce, including gig and platform workers. It also aims to ensure that every worker in India, irrespective of their employment status, is granted the right to social security. To make this possible, the Ministry of Labour & Employment is working closely with all stakeholders to develop a robust framework that aligns with the evolving nature of work and provides adequate protection to gig and platform workers.

NITI Aayog also made several suggestions in its past report

NITI Aayog, in its report on the gig workers, said “To harness the potential of the gig-platform sector, there is a need to accelerate access to finance through products specifically designed for platform workers, linking self-employed individuals engaged in the business of selling regional and rural cuisine, street food, etc., with platforms to enable them to sell their produce to wider markets in towns and cities. The report puts forth suggestions for platform-led transformational and outcome-based skilling, enhancing social inclusion through gender sensitization and accessibility awareness programmes for workers and their families and extending social security measures in partnership mode as envisaged in the Code on Social Security 2020. Other recommendations include undertaking a separate enumeration exercise to estimate the size of the gig and platform workforce and collecting information during official enumerations ( Periodic Labour Force Survey) to identify gig workers.

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