Answer

A 2024 NITI Aayog report estimated that 90% of gig workers lack savings, making them highly vulnerable to economic shocks, health crises, and irregular income. This underscores the pressing need for a comprehensive and inclusive social security framework tailored to India’s growing gig economy and platform workforce.

India’s Social Security Framework for Gig Workers

• Limited Access to Existing Schemes: Most gig workers are excluded from schemes like EPF and ESIC due to the absence of a formal employer-employee link.
  For example: A civil society report found over 60% of app-based drivers lack access to social security despite working more than 14 hours daily.
• Inadequate Implementation of the Code on Social Security, 2020: Though this Code includes gig workers, its execution remains slow and fragmented.
  For example: NITI Aayog has proposed a dedicated corpus fund for gig workers, but operational rollout and institutional coordination are still weak.
• Lack of Employer Contributions: Platforms typically do not contribute to social security, denying workers safety nets.
  For example: The Rajasthan Gig Workers Welfare Act 2023 mandates platform contributions to a welfare board an innovation not yet scaled nationally.
• Absence of Health and Safety Nets: Gig workers often lack insurance or health coverage, increasing their risk during illness or accidents.
  For example: A survey by LEAD at Korea University found that 65% of gig workers lack savings and nearly 50% have no insurance.
• Gender Disparities in Social Security Access: Women in gig work face structural and safety barriers that reduce benefit access.
  For example: Policies on platforms like Urban Company have disproportionately impacted women, reducing their participation and social protection coverage.

Suggest Reforms Necessary to Ensure Gig Workers’ Financial Resilience

• Establish a Dedicated Social Security Fund: A jointly financed fund by government and platforms can cushion workers against income shocks.
  For example: NITI Aayog has proposed a contingency corpus fund to extend targeted protection during job loss or emergencies.
• Mandate Platform Contributions: Requiring companies to share social security costs can create equitable financial security.
  For example: Government discussions propose platforms contribute 1–2% of revenue to a central welfare fund for gig workers.
• Expand Access to Existing Schemes: Schemes like PMSYM, APY, and NPS should be made accessible with relaxed eligibility for gig workers.
• Implement Portable Benefits: Ensuring benefits travel with workers across platforms will improve coverage continuity.
• Enhance Financial Literacy and Inclusion: Training in financial planning can help gig workers build savings and manage risks.
  For example: NITI Aayog emphasized fintech solutions to improve financial access for the “unbanked and under-banked” gig workforce.

Suggest Reforms Necessary to Ensure Gig Workers’ Long-Term Welfare

• Formal Recognition of Gig Workers: Legal identification will enable rights-based access to social protection schemes.
• Implement Comprehensive Health and Safety Regulations: Institutionalized health coverage is key to long-term welfare.
  For example: The Tamil Nadu government launched an insurance program for gig workers covering accidental death and disability.
• Promote Collective Bargaining Rights: Unionization can empower workers to negotiate better pay and conditions.
  For example: The Telangana Gig and Platform Workers Union has successfully advocated for safety and grievance redress systems.
• Develop Gender-Sensitive Policies: Women-specific support such as safety features and maternity protection is crucial.
  For example: NITI Aayog recommends platform-government collaboration to recruit and retain skilled women gig workers.
• Establish Grievance Redressal Mechanisms: A fair dispute resolution system would improve worker trust and retention.
  For example: Policy initiatives are exploring grievance systems aligned with labor codes for resolving worker-platform disputes.

India’s gig economy is expanding rapidly, yet its social protection systems remain exclusionary and fragmented. To ensure gig workers’ financial resilience and long-term welfare, it is essential to implement inclusive, enforceable, and portable benefit frameworks, supported by platform accountability, gender equity, and institutional reforms across central and state levels.