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Posted 13 Jul 2024

2 min read

As per Internet and Mobile Association of India (IAMA), provisions like mandatory registration, updation of database, monetary contribution by firms would likely impact the Ease of doing business.

  • These are required under Draft Karnataka Gig Workers (Conditions of Service and Welfare) Bill, 2024
  •  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 two 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.

Concerns associated with Gig workers: 

Absence of safeguards  like minimum wage, poor upward mobility within organization, Absence of traditional employment perks like medical insurance, pension plans, etc.

Balancing gig workers' social security and business

  • Specialized savings and insurance products for gig workers.
  • Collaboration between policymakers, corporations, and workers for an equitable gig economy.
  • Efforts should be made to create a more stable income environment for gig workers by discouraging the race-to-the-bottom mentality.

Initiatives for Gig Workers

  • Code on Social Security, 2020: Provides for extension of social security benefits to gig workers as well.
    • Provides for setting up a Social Security Fund with contributions between 1-2% (subject to a limit of 5%) of annual turnover from aggregators. 
  • Occupational Safety, Health and Working Conditions Code, 2020: To promote safe and healthy work environment and it also regulates contract labour.
  • Tags :
  • Gig Workers
  • Code on Social Security (CSS) 2020
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