#327: Gig Workers in Indian Economy

UPSC Relevant Notes

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1. Definition and Growth of Gig Work

• Gig workers (GW) incorporated first u/ Code on Social Security 2020

• GW = person participating in work arrangement & earns from such activities outside of traditional employer-employee relationship

• Niti Aayog: 23.5 mn GWs by 2030

2. Economic Significance

• Contribute to diverse forms of GW, including platform-based & informal employment

• NITI Aayog: GW = 'natural order of gig work' emphasizing role in India's booming Gig & Platform economy

3. Social Security Framework

• The Code on Social Security, 2020, aims to extend social security to gig workers

• GoI shall establish a Social Security Fund for GWs

• National Social Security Boar (u/ Code 2020) includes representation for GWs

4. Challenges and Issues

• Lack of representation and recognition in traditional labor categories.

• Absence of employee benefits like provident funds, health insurance, and job security.

• Multiple job holdings and hybrid work arrangements complicate social security coverage.

5. Government Initiatives

• Union Budget 2025 measures to formally recognize gig and platform workers.

• Proposed welfare boards and policymakers’ policy focus on gig workers’ inclusion.

• Central Government to notify schemes for gig workers’ welfare.

Relevant Facts for UPSC:

• Gig Worker Profile: Often peripheral workers (e.g., delivery personnel in Delhi, 2024).

• Policy Gaps: Lack of a distinct category for gig workers in PLFS methodology.

• Future Projections: NITI Aayog estimates significant growth, necessitating policy reforms.

Potential UPSC Questions:

1. Discuss the implications of the Code on Social Security, 2020, for gig workers in India.

2. Analyze the challenges in extending social security to gig and platform workers as per NITI Aayog’s 2022 report.

3. Evaluate the role of the Central Government in addressing the welfare needs of unorganized and gig workers.

CSEWhy Preparation Tips:

• Focus on linking gig economy trends with India’s labor laws and economic policies.

• Use NITI Aayog reports and PLFS data for statistical backing in answers.

• Highlight the need for inclusive policies in the context of India’s digital economy.