Synopsis:
The gig economy in India is growing rapidly, and with it comes the urgent need to secure the social protection of gig and platform workers. As the government pushes for increased enrolment of these workers in the e-shram portal, which serves as a database for unorganized workers, the need to ensure the actual delivery of social benefits is critical. With gig workers poised to constitute 6.7% of India’s non-agricultural workforce by 2029-30, it’s time to address the dual identity challenges they face as both entrepreneurs and workers.
Increasing Gig Worker Enrolment in the e-Shram Portal
The Indian government launched the e-shram portal in August 2021 to create a centralized database of unorganized workers, including gig workers. The platform has achieved impressive enrolment figures, reaching around 300 million workers, which constitutes approximately 75% of the unorganized sector. The portal allows workers to access various social welfare schemes such as pensions, life insurance, and accident insurance.
However, despite these impressive enrolment numbers, there is less clarity on whether gig workers are receiving the benefits promised. According to data from the Lok Sabha in 2023, ₹704 crore was allocated for unorganized workers’ welfare schemes, but only ₹418 crore was disbursed by March 2023, raising concerns over whether benefits are reaching their intended recipients(
Platform Workers: Navigating Dual Identities
The rise of platform workers, who work through online platforms provided by aggregators, presents a unique challenge. Their dual identity as entrepreneurs (since they own assets such as vehicles or equipment) and workers (since they provide services) has led to fears that they may miss out on essential social security benefits.
With the growing gig economy after the COVID-19 pandemic, platform workers now represent a significant portion of India’s urban workforce. Despite this, it remains unclear what proportion of platform workers have enrolled in the e-shram portal. The absence of such detailed data calls for a targeted drive to encourage platforms and aggregators to register their workers .
The Expanding Gig Economy in India
A study by the NITI Aayog estimates that the number of gig workers—which includes all casual labor—will rise to 23.5 million by 2029-30. This group is expected to constitute 6.7% of the non-agricultural workforce, a significant increase from the current figure of less than 3%(
Press Information Bureau). Despite this growth, the term “gig workers” is often used interchangeably with “platform workers,” leading to confusion and imprecise data.
To resolve this, the government needs to implement clearer definitions and ensure a robust data collection system that accurately captures the number of platform workers. One solution could be to involve state welfare boards, such as those in Rajasthan and Karnataka, which have created frameworks for aggregators to register service providers and deduct a welfare cess from transaction fees.
Challenges Facing Gig Workers: Access to Social Security
One of the key challenges faced by gig workers in India is the lack of access to well-run welfare services like the Public Distribution System (PDS) and Ayushman Bharat, India’s flagship health insurance scheme. Many gig workers, despite their low income, are excluded from such services due to asset ownership (such as a vehicle used for work), which categorizes them as ineligible for benefits .
This exclusionary practice fails to account for the precarious nature of gig work, where earnings are often inconsistent and workers do not receive the same protections as those in formal employment. To address this, the government must revisit policies that exclude gig workers from accessing social welfare services simply because they own assets used for their work.
Improving Welfare Benefits for Gig Workers
The e-shram portal’s current structure has room for improvement, especially in terms of delivering social welfare benefits to gig workers. The low disbursement of allocated funds for unorganized workers in recent years highlights inefficiencies in the system.
The government should prioritize expanding the welfare offerings available on the e-shram portal to include a broader range of benefits for gig and platform workers. This could include health insurance, paid leave, and retirement savings programs tailored to the needs of workers in the gig economy .
The Future of Gig Work: Data Collection and Social Security
To ensure that platform workers are not left out of India’s social security system, the government must conduct a comprehensive survey to gather accurate data on the gig workforce. Without reliable data, policies aimed at supporting these workers may fall short of their goals. A better dataset will also enable more effective policymaking, ensuring that gig workers receive uniform welfare services across the board.
The lack of clarity around how many platform workers are enrolled in the e-shram portal and how many are accessing benefits is an area that needs urgent attention. A comprehensive survey could also inform the creation of specific policies to address the dual identity problem that gig workers face as both entrepreneurs and employees.
Social Security for Gig Workers: A Global Perspective
India is not alone in grappling with the challenge of providing social security to gig workers. Countries like the United States and the United Kingdom have also faced difficulties in adapting their social security systems to accommodate the growing gig economy. In these nations, gig workers are often classified as independent contractors, which limits their access to benefits like health insurance and unemployment protection.
However, some European countries have taken steps to address these challenges. In France, for example, gig workers who work for platforms like Uber and Deliveroo are entitled to certain social protections, including accident insurance. These international examples offer valuable lessons for India as it works to expand its social security net to include gig workers .
Conclusion: A Path Forward for Gig Worker Protection
The government’s efforts to increase e-shram enrolment among gig workers are a positive step, but much more needs to be done to ensure that these workers have access to the social security benefits they deserve. As the gig economy continues to expand, so too must the protections available to workers who depend on these platforms for their livelihood. Improved data collection, targeted policies, and the inclusion of gig workers in existing welfare schemes will be essential to addressing the challenges they face.
FAQ Section
1. What is the e-shram portal, and how does it help gig workers?
The e-shram portal is a government initiative to create a centralized database of unorganized workers, including gig workers. It allows workers to access social welfare schemes like pension and life insurance.
2. Why are platform workers at risk of missing out on social security benefits?
Platform workers face the risk of missing out on benefits because they are often seen as both entrepreneurs and workers. Their asset ownership may disqualify them from welfare services like the Public Distribution System (PDS).
3. What are the government’s plans for increasing gig worker enrolment in the e-shram portal?
The government is encouraging online aggregators to enroll their workers in the e-shram portal and is considering new policies to ensure gig workers are included in social security programs.
4. How many gig workers are expected in India by 2030?
By 2029-30, it is estimated that India will have 23.5 million gig workers, making up 6.7% of the non-agricultural workforce.
5. What are some international examples of social protections for gig workers?
In France, gig workers who work for platforms like Uber are entitled to social protections, including accident insurance. This offers a model for India to consider as it seeks to provide better social security for its gig workforce.
References
- Ministry of Labour and Employment – e-Shram Portal: https://eshram.gov.in
- The Hindu – Gig Workers and Social Security: https://www.thehindu.com/business/gig-workers-social-security
- NITI Aayog – Gig Economy and Workforce Data: https://niti.gov.in/gig-economy-report
- International Labour Organization – Social Protection for Gig Workers: https://ilo.org/global/topics/social-security
Sunil Garnayak is an expert in Indian news with extensive knowledge of the nation’s political, social, and economic landscape and international relations. With years of experience in journalism, Sunil delivers in-depth analysis and accurate reporting that keeps readers informed about the latest developments in India. His commitment to factual accuracy and nuanced storytelling ensures that his articles provide valuable insights into the country’s most pressing issues.
