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Gig Economy and Gig Workers in India

Gig Economy and Gig Workers in India

Context

A recent survey conducted across multiple Indian Cities, titled ‘Prisoner on Wheels’ sheds light on the challenges faced by many cab drivers and delivery persons.

Relevancy for Prelims: Unemployment In India, Indian Economy, Basics Of Money, Gig Economy in India, Gig Workers,and  Periodic Labour Force Survey (PLFS)

Relevancy for Mains: Informalisation of Work: Various Dimensions.

 

NITI Aayog Report on Gig Economy in India

  • Current Status: According to the NITI Aayog, 77 lakh (7.7 million) workers were engaged in the gig economy in 2020-21 and the workforce is expected to “expand to 2.35 crore (23.5 million) workers by 2029-30″.
  • CAGR: The Associated Chambers of Commerce and Industry (ASSOCHAM) reports that India’s gig economy is growing at a Compound annual growth rate (CAGR) of 17 per cent annually.
  •  Significant in Realisation of Demographic Dividend: With the world’s second largest working age population, the Indian workforce will continue to grow in size until 2049.

About Gig Economy

  • A Gig economy is a labour market that relies on independent contractors and freelancers rather than full-time permanent employees.
  • Trend Change in recent years: Rise in the rise of ‘gigification’ or adoption of the gig model – reshaping work dynamics.
  • Gig Workers consists: 
    • Freelancers who get paid per task;
    • Independent contractors who perform work and get paid on a contract-to-contract basis;
    • Project-based workers who get paid by the project;
    • Temporary hires who are employed for a fixed amount of time; and
    • Part-time workers who work less than full-time hours.

Benefits of Gig Economy:

  • For Workers: Gig economy can provide more flexibility, autonomy, income opportunities, skill development, and inclusion.
  • For Employers: It can enable access to a large and diverse pool of talent, lower fixed costs, higher scalability, and better customer satisfaction. 
  • For Customers: It can offer more choice, convenience, quality, and affordability

Gig Economy Regulatory Framework in India

  • Code on Wages, 2019: A universal minimum wage and floor wage should be provided to all organised and unorganised sectors, including gig workers.
  • Code on Social Security, 2020: Under this, the gig workers are provided with recognition as a new occupational category.
  • Dedicated Social Security Fund: It extends social security benefits to gig workers.
  • Motor Vehicle Aggregator Guidelines,2020: Under this, gig workers are entitled to get a term insurance of Rs 15 lakh and health insurance of Rs 10 lakh with 2020-21 as the base year and with an increase of 5% each year.

Concerns Associated with Gig Economy in India

  • Lack of Formalisation: Many gig workers in India operate in the informal sector, which can limit their ability to access credit, government support programs, and other resources.
  • Lack of Legal Protection & Social Security: Gig workers are not covered under India’s labour laws and do not have legal protection in case of workplace harassment, discrimination, or unfair termination.
  • Payments, Incentives, and Growth Models: Absence of a minimum wage guarantee makes workers.
  • Training and Upskilling: Many Gig Workers: Many Gig Workers lack the necessary skills to perform their work better.
  • Social Stigma: Gig Work is still viewed as a temporary and low paying job in India. There is also a lack of recognition of work done by them in the Society.
  • Increase in voluntary Unemployment: as some prefer autonomy and flexibility over traditional work.
  • Disrupting Work Life Balance: Especially Sleep patterns,activities of daily life etc.
  • Job Security: Workers are typically engaged on assignment or project basis.

Way Forward as suggested by Survey

  • Overtime Payment Beyond Regular Hours: Considering the physically intense nature of this work, the number of hours that are ‘regular’ hours needs to be stipulated beyond which the platform must pay overtime.
  • Payment of Minimum Wages to Platform workers: The gig and platform workers need to be treated as employees.
  • Preserving Flexibility of Work for Gig Workers: The design of social security for gig workers must seek to preserve the flexibility of work
  • Stronger Social Security for App-based Workers: The government needs to exercise oversight on the fairness of algorithms and mechanisms used by platforms to monitor such workers.
  • Welfare Board for Gig Workers: It needs to be set up for the welfare of gig workers and it should be mandatory for aggregators to provide details of all registered gig workers to the board.
  • Addressing Occupational Health Hazards: Giving essential safety training, especially for roles with inherent risks, and safety equipment and resources can go a long way in encouraging temporary workers.
  • Addressing Mental Health: Companies should normalise work life balance and taking breaks.
Also Read: Female Labour Force Participation In India

 

Mains Question: Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (150 words, 10 Marks)

 

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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Designed as per recent trends of Prelims questions
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