PremiumMany countries are pushing digital platform companies employing gig workers to treat them as ‘employees’. Now, India’s federal think tank Niti Aayog has joined the debate, recommending social security policies for such workers. Mint explains.
Many countries are pushing digital platform companies employing gig workers to treat them as ‘employees’. Now, India’s federal think tank Niti Aayog has joined the debate, recommending social security policies for such workers. Mint explains.
What is Niti Aayog’s recommendation?
The think tank has recommended that platforms or startups provide gig workers with more support in the form of pension, provident fund, paid sick leave, and medical and life insurance. It has also recommended creating a social security fund to account for injuries and emergencies. It has also suggested the government create ‘platform initiatives’—along the lines of Startup India— which will carry out a census of gig workers to survey and identify them. It wants this framework to upskill them and help them access loans with generous timelines in case of an emergency, and open credit lines for their own ventures.
What is Niti Aayog’s recommendation?
The think tank has recommended that platforms or startups provide gig workers with more support in the form of pension, provident fund, paid sick leave, and medical and life insurance. It has also recommended creating a social security fund to account for injuries and emergencies. It has also suggested the government create ‘platform initiatives’—along the lines of Startup India— which will carry out a census of gig workers to survey and identify them. It wants this framework to upskill them and help them access loans with generous timelines in case of an emergency, and open credit lines for their own ventures.
How are gig workers treated in other countries?
Last year, the UK Supreme Court said Uber drivers are entitled to minimum wages and holiday pay. In 2020, the US Congress extended unemployment insurance to gig workers as part of covid relief steps. The US government has recommended classifying some gig workers as ‘employees’. Recently, a Swiss court ruled that Uber drivers were employees.
What are startups saying?
Most startups have opposed such measures —gig workers offer flexibility and startups can ramp up and down depending on the season or economic environment. Hence, the biggest challenge is the cost burden. Also, today, many of the gig workers work for multiple companies, especially at food tech and ride hailing aggregators. The companies face high attrition and there is little loyalty. Gig workers, already on low wages, may not want to contribute towards pension or provident funds if it is deducted from their wages.
Do startups provide any support today?
Most startups provide medical, accidental or life insurance policies, but not provident fund or pension benefits. Some companies offer on-job training and benefits such as loans or scholarships for workers’ children. In some cases, a loyal gig worker, one who has spent years on a platform, may be absorbed as a permanent employee. But that’s rare. A new discussion is doing the rounds—startups contributing towards a common government corpus for workers who have been employed for a minimum amount of time.