The Indian government is developing a social security scheme for gig workers, which will require them to contribute 1% to 2% of their daily earnings and provide benefits like provident funds and pensions. This initiative aims to support the growing gig workforce by offering safety nets and aligning with the Code on Social Security, 2020, while also integrating gig workers into the Pradhan Mantri Jan Arogya Yojana scheme.
The Indian government is in the process of finalizing a social security scheme for gig workers, aimed at providing a safety net for the growing number of individuals engaged in gig jobs due to limited employment opportunities. The initiative, which is expected to be presented to the Union Cabinet for approval soon, has been developed through discussions between the labour ministry, gig workers’ associations, online aggregators, and state governments.
Under the proposed scheme, gig workers will contribute between 1% to 2% of their daily earnings from each platform they work with, ensuring that they receive essential benefits such as provident fund and pension. Each worker will be registered on the e-Shram portal of the labour ministry and assigned a 12-digit universal account number (UAN) for identification and contribution tracking. The scheme is designed to aid the approximately 10 million gig workers in India, many of whom lack a safety net despite some aggregators providing limited accidental insurance.
Additionally, gig workers will be included in the government’s health insurance initiative, Pradhan Mantri Jan Arogya Yojana (PMJAY). In line with the Code on Social Security, 2020, which is pending implementation, the scheme will provide various social security measures such as life and disability cover, accident insurance, health and maternity benefits, and old age protection. Furthermore, a Social Security Fund is proposed to finance the welfare scheme. Overall, the initiative aims to enhance the security and welfare of gig workers, allowing for a smoother transition should they decide to shift to regular employment where their accounts would merge with the Employees’ Provident Fund Organisation.
