New Delhi: A New Dawn for Gig Workers

The Indian government is on the brink of introducing a groundbreaking social security scheme aimed at gig workers. This initiative will mandate platforms to deduct a portion of the payments made to these workers and contribute it to the Employees' Pension Scheme, with the government potentially adding a 3-4% contribution to the deposit.

This move extends beyond food delivery and ride-sharing apps to include software professionals and other gig workers, marking a significant step forward in the labor codes enacted a few years ago. These codes, however, have remained unimplemented due to the lack of consensus among states.

Implementation Challenges and Solutions

Given the diverse nature of gig work, with many individuals working across multiple platforms, the government is considering a streamlined process for payment entities to deduct and deposit the required amounts directly with the Employees' Provident Fund Organisation.

"We are finalizing the details and aim to operationalize the scheme soon," a senior labor ministry official stated, highlighting ongoing discussions with states to expedite the implementation of labor codes.

Looking Ahead: A Secure Future for Gig Workers

The Social Security Code envisions a fund for social security, offering health and accident insurance among other benefits. This initiative is part of the government's broader agenda to address the inadequate protection currently afforded to gig workers, with some states already taking steps to ensure their social security.