Govt working to provide social security benefits for gig workers: Report

The Indian government is working on establishing social security contributions by gig workers. As part of the efforts, businesses will be asked to deduct a certain percentage of the payment they give to the employees and deposit it with the Employees’ Pension Scheme. 

Additionally, the government may also increase it with a 3-4% contribution of the deposit made by the platforms. Under this plan, gig workers in India, not only include food delivery and car ride apps, but also software and other professionals. 

“We are working out the details and we hope to operationalize it soon,” a senior labor ministry official told the Times of India.

The Centre is also working with state governments to get the labor codes in place as a crucial step for gig workers and businesses. 

As per the Social Security Code, setting up a social security fund is crucial, along with providing health and accident insurance and other benefits, the TOI report added.

Last year, Labour Minister Mansukh Mandaviya stated that a panel has been set up under a senior officer to look into the potential ways the labor codes will be implemented to ensure that there is a retirement saving for every worker.

The labor ministry is also in talks with delivery platforms and other businesses to ensure that benefits of existing government schemes such as Ayushman Bharat and accident and life insurance are also available for workers. Some states have already announced provisions to ensure social security benefits for gig workers.

Addressing a seminar last week, Mandaviya said, “India’s social protection coverage doubled from 24.4 percent to 48.8 percent as per ILO’s World Social Protection Report 2024-26. Almost 920 million people, 65 percent of the population, are covered by at least one social protection benefit (cash or in-kind) by Central Govt schemes.”

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