India's Ministry of Labour to Roll Out Social Security Scheme for Gig and Platform Workers

Outlook Business Desk

Labour Ministry Scheme for Gig and Platform Workers

The Ministry of Labour & Employment is developing a scheme to provide social security benefits to gig and platform workers. This move aims to support their productivity and economic contribution, as they lack a traditional employer-employee relationship

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Estimated Number of Gig and Platform Workers

Niti Aayog has estimated 65 lakh gig and platform workers in the country, but the number is likely to be over 2 crore as this segment is growing rapidly. By 2030, the ministry expects more than 3 crore workers in the gig and platform economy

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Who Are Gig and Platform Workers?

The definition of 'gig workers' and 'platform workers' has been provided in the Code on Social Security 2020. This definition will help in identifying and providing benefits to the workers in this segment

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Impact of Artificial Intelligence (AI) on Jobs

The ministry believes that AI can create jobs rather than negatively disrupt the employment landscape. With a workforce of 643 million, India is seen as a solution to global labor shortages

Formalisation of the Workforce

There has been rapid formalization of the workforce, with approximately 7 crore Indians joining provident fund pension coverage since 2017. This trend is expected to persist, with more workers transitioning to the formal sector

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Employees' Linked Incentive (ELI) Scheme

The ELI Scheme, announced in the Budget, is a key initiative aimed at supporting manufacturing and formalizing the labor force. The industry is encouraged to utilize this scheme to enhance their competitiveness

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Future of Gig and Platform Economy

The number of gig and platform workers in the country is projected to reach 23.5 million by 2029-30. The ministry is working to offer social security benefits to these workers, enhancing their productivity and contributing to the country's economy

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