Why Indias Gig Workers Still Lack Social Security After Legal Win

India Grants Legal Status to Millions of Gig Workers in Landmark Labor Reform

India has granted legal status to millions of gig and platform workers. This landmark change is part of newly implemented national labor laws. The move aims to bring delivery drivers and ride-hailing partners under a social security net.

The recognition comes from the Code on Social Security. It is one of four new labor codes that took effect last Friday. This is the only code that directly addresses the country’s vast gig workforce.

India gig worker legal status

What The New Legal Status Actually Means

The law defines gig and platform workers in statute for the first time. It requires companies to contribute to a government social security fund. According to Reuters, this fund will finance welfare schemes.

Aggregators like food-delivery apps must contribute 1–2% of their annual revenue. This payment is capped at 5% of the amount paid to workers. The exact benefits and access methods remain unclear.

Implementation Hurdles and Worker Concerns

A key challenge is registering workers on the government’s E-Shram portal. This national database is mandatory for accessing benefits. Many workers cannot afford the time off to register.

Trade unions are planning nationwide protests. They demand minimum wage guarantees and employee status. The current law does not address immediate issues like account suspensions or fluctuating pay.

This reform establishes a crucial legal framework for India’s gig economy. The success of these new gig worker protections now depends on state-level implementation. Millions await tangible benefits from this historic recognition.

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What benefits will gig workers receive?

The law enables coverage under schemes like provident fund and insurance. Specific benefit details and eligibility criteria are still being finalized by the government. The rollout will depend on state-level administration.

Which companies are affected by this law?

All major platforms using gig workers are included. This encompasses food delivery apps like Swiggy and Zomato, ride-hailing services like Uber and Ola, and e-commerce giants like Amazon and Flipkart.

How many gig workers are in India?

Industry estimates suggest over 12 million people work in India’s gig economy. The government’s own estimates place the number around 10 million. This workforce is one of the world’s largest and fastest-growing.

When will workers start seeing benefits?

There is no confirmed timeline for benefit distribution. The process requires states to form Social Security Boards and design specific schemes. This could take months or even years to fully implement across different regions.

Why are trade unions protesting the new laws?

Unions argue the laws fail to guarantee minimum wages or employee status. They believe the social security provisions are insufficient without addressing core issues like earnings stability and protection from arbitrary account termination.