Saturday, September 9, 2023

Gig Economy of (gig) workers!

Salute to indomitable spirits of thousands and millions of gig workers who worked tirelessly to reach last mile. Gig workers technically salvaged us from covid 19 pandemic by delivering essentials at home. India estimated to have 7.7 million gig workers who are pivotal factor for many unicons in India. It's not new concept that we are observing now, delivering of good/services at home is hardly a decade long business activity, we already witnessed courier delivery at homes predominantly from year 2000. 

Niti Aayog has released a report titled 'Blooming Gig and Platform Economy' described these millions of delivering persons as gig workers or platform workers. The person who performs work or participate in a work arrangement and earns a livelihood from such activities outside the purview of traditional employer-employee relationships. They lack any form of social security benefits like health insurance, provident fund, bonus, gratuity, leaves, holiday and many more. Since it has been assumed that this is not traditional or conventional employer-employee relationship they are treated like consultants or freelancers. That has resulted in employers are sheding their responsibility of providing the social security benefits. 

In order to earn between INR 20,000 to 25,000/_ they have to work starting from morning to late night i.e. more than traditional workers. No limits on working hours, no appropriate personnel protective equipment(ppe kits), no leaves no holidays, no income and job security cause damages to health and relationships.

Traditional economy sustained and grown to new heights beause they used to take care of workers, their one of the factors of productions. In gig economy this factor remains unchanged but definition definitely has changed. State of Rajasthan has taken certain measures to promote welfare of gig workers. In February 2023, Rajasthan allocated 200 cr welfare fund and constitutes a board for execution of welfare activities [you can read more about Rajasthan Platform-Based Gig Workers(Registration and Welfare) Bill, 2023]. Rajasthan is the first state to impose 2% cess on online transactions on platform.  

In the State of Karnataka, government is providing INR 4,00,000/_ accidental and life insurance. State's labor ministry has also proposed to impose 5% cess on platform based online transactions. Government of India has consolidated 44 laws in 4 codes and one of them is code on social security. The code is expanding the definition worker by including the gig worker and unorganized sector workers. Slowly and steadily fiscal policies are marching towards securing the social benefits of/for gig workers. Now it's time for animal spirit of corporations to act for sustainable development of gig economy. 


A gig worker delivering food during heavy torrential rain.


-Amol Nakve 
(Views expressed in this article are personal)

1 comment:

Anonymous said...

Thoughtful and the really reality of life. Well explained 🙏🏼

Rusted but remained!

 Rusted but remained! Clicked at Matheran, Maharashtra, India.