The government has formed a committee to suggest a framework for providing social security and welfare benefits to gig and platform workers, the Parliament was informed on Monday.
Gig workers and platform workers have been defined for the first time in the Code on Social Security 2020, which has been enacted by the Parliament.
Social Security and Welfare-related provisions for the gig and platform workers have been mentioned in the Code, Minister of State for Labour and Employment, Shobha Karandlaje, told the Lok Sabha in a written reply.
“The Code provides for framing suitable social security measures for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc. The Code also provides for setting up a Social Security Fund to finance the welfare scheme,” she added.
An advisory has also been issued by the Ministry of Labour and Employment to aggregators to register themselves and platform workers engaged with them on the e-Shram portal.
The ministry launched the eShram portal on August 26, 2021, for the creation of a comprehensive National Database of Unorganised Workers (NDUW) verified and seeded with Aadhaar.
The e-Shram portal is meant to register and support unorganised workers by providing them with a Universal Account Number (UAN).
In October this year, about 60,000 registrations happened on eShram per day, and a single-day registration reached 97,839 on October 9, said Karandlaje in a reply to a separate question in the Lok Sabha.
As of November 19, over 30.4 crore unorganised workers have registered on the eShram portal on a self-declaration basis.
“Integration of social security and welfare schemes with eShram is a continuous process,” said the minister.
She further stated that since its inception in October and till November 18, a total of 46,10,233 Labour Identification Numbers (LINs) have been issued online to businesses and employers registered on Shram Suvidha Portal (SSP).
The portal has eased the complexity of compliance by providing the facilities of online registration, licence, and return filing to business entities along with a randomised risk-based inspection system, thereby reducing subjectivity for law-implementing agencies.
“Since its inception and till November 18, 2024, 1,20,663 licences have been issued online. Further, a total of 4,35,376 returns have been filed online,” the minister said.
Challenges In Implementation
While these legislative efforts mark a significant step towards securing social protections for gig workers, several challenges remain. One major issue is the classification of gig workers as independent contractors rather than employees. This classification complicates the application of traditional labour laws and makes it difficult to extend conventional benefits to these workers.
Furthermore, the flexibility inherent in gig work poses challenges in designing social security systems that accommodate varying work patterns and income levels.
Another critical challenge is ensuring effective coordination among various stakeholders, including gig platforms, government agencies, and financial institutions. Accurate data sharing is essential for assessing gig workers’ earnings and contributions to social security programs.
However, many gig workers operate across multiple platforms, complicating efforts to track their overall income and eligibility for benefits
