Maharashtra is set to enact new social security legislation for gig workers, acknowledging their crucial role in the modern economy. Labour Minister Akash Fundkar announced the forthcoming law, emphasizing the necessity of social security for gig workers employed by online platforms like Zomato. The government is currently drafting the legislation to ensure platform workers receive social security benefits.
The decision comes amid growing concerns about the working conditions and lack of legal protection for gig workers. These workers, who operate outside traditional employer-employee relationships, often face income instability and lack access to benefits such as health insurance and pensions. The new law aims to address these vulnerabilities by providing a safety net for this expanding segment of the workforce.
The planned legislation aligns with the Code on Social Security, 2020, which defines gig workers and outlines provisions for their welfare. This code includes measures related to life and disability cover, accident insurance, health and maternity benefits, and old-age protection. The central government has also been pushing for the registration of gig workers on the e-Shram portal to facilitate access to social security benefits.
Earlier this year, the Union government announced health insurance coverage of ₹5 lakh for gig workers registered on the e-Shram portal under the Ayushman Bharat Jan Aarogya Yojana. Additionally, there have been discussions about providing pension benefits to gig workers through the Employees' Provident Fund Organisation (EPFO), with contributions potentially coming from aggregators.
Other states like Rajasthan and Karnataka have already taken steps to protect gig workers through legislation and welfare boards. Rajasthan's law, for instance, imposes a tax on customer transactions on digital platforms to fund social security benefits for gig workers. Maharashtra's move to create its own law signals a commitment to ensuring fair labor practices and social security for its gig workforce.
The gig economy is rapidly expanding in India, with projections estimating a workforce of 23.5 million by 2030. This growth underscores the importance of establishing clear legal frameworks and social security measures to protect the rights and well-being of gig workers. The Maharashtra government's initiative is a crucial step in that direction, with the state government firmly standing behind gig workers.
