NEW DELHI: The labour ministry will soon put in place a framework for social security of gig workers, including health insurance and pension, a move that will benefit drivers with ride-hailing apps and those working with delivery platforms. The decision to roll out the framework in place is seen as a “soft launch” of the provisions in the labour codes, which is yet to be implemented as several states are still not on board.
“We cannot deprive them of their rights till the implementation of the Code.We have to bring a policy before that,” labour minister Mansukh Mandaviya said on Thursday. The labour code had for the first time defined gig workers. He also announced extension of the enhanced insurance benefits for all six crore EPFO members that will provide them up to Rs 7 lakh life cover.
The scheme, which had expired, has been extended with retrospective effect from April 28. After a meeting with representatives of Platform Workers’ Association earlier on Thursday, the minister said he will seek to put in place the social security framework before the budget in Feb and added that the policy will be legally binding across the country. Some of the states have enacted laws for gig workers.
Mandaviya said that several suggestions such as creation of unique identity numbers for providing benefits and a cess on transactions to create a social security corpus have been made, which will be studied. The minister said that the ministry is exploring all suggestions as there is no employer and employee relationship in their case, and the main issue is who would pay for employers’ contribution to social security schemes for them.
Niti Aayog has estimated 65 lakh gig and platform workers in the country, but the number is likely to be over two crore as the segment is growing rapidly. The Code on Social Security 2020 provides for social security measures for gig workers and platform workers on issues related to life and disability cover, accident insurance, health and maternity benefits and old age protection. It also provides for setting up a Social Security Fund to finance the welfare scheme.