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Posted 20 Mar 2024

Updated 28 Mar 2024

2 min read

  • State Government of Karnataka shared the draft bill with stakeholders, which aims to ensure income security, occupational safety, and establish grievance redress mechanism for welfare of gig workers.
    • Currently, Rajasthan is the only state to have legislation for welfare of gig workers.
  • Gig workers: Means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship. (Code on Social Security, 2020)
    • Broadly classified into 2 categories:
      • Platform based: Whose work is based on online software apps or digital platforms.
      • Non-platform based: Casual wage workers in conventional sectors, working part-time or full-time.

 

  • Status of Gig economy in India (NITI Aayog)
    • ~2.6% (7.7 million) of non-agricultural workforce were engaged in Gig economy. (2020-21)
    • Gig workforce is expected to expand to 23.5 million by 2029-30.

 

  • Reasons for growth of Gig economy
    • Flexibility to workers: In terms of switching jobs, freedom to choose work hours, etc.
    • Flexibility to employers: Scalable workforce, access to specialized skills, reduced operating costs, etc.
    • Technology: Increased penetration of internet, surge in e-Commerce resulting in increased demand for delivery and logistics services, etc.
  • Concerns: Low wages, poor upward mobility within organization, lack of social security, etc.

 

Statutory Framework for Gig Economy in India

  • Code on Social Security, 2020: Provides for extension of social security benefits to gig workers as well.
  • Occupational Safety, Health and Working Conditions Code, 2020: To promote safe and healthy work environment and it also regulates contract labour.
  • Tags :
  • Gig Economy
  • Status of Gig economy
  • Gig Workers
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