Answer

Introduction

The nationwide strike by over two lakh gig workers on New Year’s Eve 2025 highlights a deepening structural crisis. While platforms celebrated record order volumes, the mass “log-out” underscored that the “convenience” of the gig economy is increasingly built on unsustainable working conditions and the systematic exclusion of workers from basic labor rights.

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Key Challenges Faced by Platform Workers

• Income Instability: Workers face unpredictable payouts and the removal of long-standing incentives, making it difficult to meet basic living costs.
  Eg: Over 80% of workers surveyed reported working more than 10 hours a day,the largest share of delivery workers earned under ₹10,000.(As per survey by PAIGAM (People’s Association in Grassroots Action and Movement))
• Algorithmic Management: Opaque “black box” algorithms dictate work allocation and penalties, often leading to arbitrary account deactivations without human appeal. 
• Occupational Hazards: Aggressive “10-minute delivery” models force riders into reckless driving, increasing the risk of accidents and physical exhaustion.
  Eg: Multiple reports in 2025 linked the ultra-fast delivery mandate to rising trauma cases among delivery partners.
• Social Insecurity: Classification as “independent partners” rather than employees leaves workers without health insurance, provident fund, or accident cover.
  Eg: The Christmas Eve strike by 40,000 workers in Telangana highlighted the total absence of maternity and emergency leave.

Regulatory Measures for Fair Wages and Social Security

• Statutory Wage Floors: Establishing a minimum per-kilometer rate and a base monthly income to prevent “race-to-the-bottom” pricing.
  Eg: Unions have demanded a minimum rate of ₹20/km and a monthly floor of ₹40,000.
• Mandatory Welfare Funds: Implementing a transaction-based cess on aggregators to finance a dedicated social security fund for insurance and pensions.
  Eg: The Rajasthan Platform Based Gig Workers Act (2023) mandates a 1-2% welfare cess on every transaction.
• Algorithmic Transparency: Enacting laws that require platforms to disclose how work is assigned and provide a human-led grievance redressal mechanism.
  Eg: The Telangana Gig and Platform Workers Act 2025 proposes unique IDs and transparent monitoring systems.
• Universal Health Coverage: Expediting the integration of gig workers into existing national health schemes to provide immediate relief.
  Eg: In the Union Budget 2025-26, the government announced a plan to extend Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) benefits to platform workers.

Conclusion

The transition from “partnership” to “protection” is essential for the gig economy’s longevity. By notifying the Code on Social Security (2020) and adopting state-level welfare models nationwide, India can ensure that its digital growth is inclusive, protecting the “invisible wheels” of the economy from exploitation and modern-day precariousness.

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