In a significant move impacting millions, the Indian government has clarified the eligibility criteria for gig workers to receive social security benefits. The key requirement mandates that a gig worker must be engaged in work for a minimum of 90 days within a financial year to qualify for the safety net provisions.
Understanding the 90-Day Threshold
The clarification comes from the detailed rules framed under the Code on Social Security, 2020. This code is a landmark piece of legislation aimed at extending social security cover to all workers, including those in the unorganized sector and the burgeoning gig economy. The 90-day stipulation serves as a benchmark to identify 'active' platform or gig workers who will be eligible for benefits.
This rule is designed to create a formal framework for welfare. It means that individuals driving for ride-hailing apps, delivering food and groceries, or providing freelance services through digital platforms will need to demonstrate this minimum level of engagement to access the proposed social security schemes.
How the Social Security Framework Will Operate
The implementation will be facilitated through a dedicated Social Security Fund. Contributions to this fund will be a shared responsibility. As per the code, both the central and state governments will contribute, along with a specific financial levy collected from the aggregator platforms that employ these gig workers.
The aggregators or digital platforms will be required to contribute between 1% to 2% of their annual turnover towards this fund. This contribution is capped at 5% of the amount paid or payable to the gig workers. This financial model ensures that the platforms participate directly in the welfare of their flexible workforce.
Implications for India's Gig Workforce
This development marks a crucial step towards formalizing protections for a segment that has traditionally operated without job security, health benefits, or insurance cover. India's gig economy is vast and growing, encompassing roles from cab drivers and delivery personnel to content moderators and freelance consultants.
By setting a clear, quantifiable eligibility criterion, the government aims to make the social security system manageable and targeted. However, it also places the onus on maintaining a certain level of work engagement for the workers to avail themselves of the benefits. The rules provide a much-needed structure but also highlight the transitional nature of gig work.
The move is expected to bring greater accountability to digital platforms while offering a layer of economic security to millions. It represents a balancing act between fostering innovation in the digital economy and upholding the welfare rights of the modern workforce. The success of this initiative will depend heavily on effective registration, seamless tracking of workdays, and efficient administration of the fund.
