Gig workers, who don’t have any protective cover, have got a shot in the arm as the Union Government has decided to extend social security benefits. A special portal is being set up wherein gig workers can register and know about relevant schemes.

“For the first time globally, social security benefits will extend to gig and platform workers,” Union Finance Minister Nirmala Sitaraman has said while presenting the Budget for 2021-22.

The benefits proposed in the Budget would include minimum wages and health cover under the Employees State Insurance Corporation (ESIC).

The Budget also proposed allowing women to work in all categories and the night-shifts with adequate protection.

Who are gig workers?

Gig workers are defined as those who work for online platforms such as e-commerce firms, workers linked to contract firms and others who take up temporary job roles, including on-call jobs. Due to their jobs’ nature, a large chunk of them remains uncounted when it comes to benefits that their peers in the organised sector get.

To get an idea on the number of gig workers and others that fall in the informal category of labour and nature of jobs, the Government proposes to set up a portal to collect ‘relevant’ information.

“We are proposing to set up a portal to collect relevant information on gig workers along with building, construction workers and other such workers,” said the FM.

“The portal will help formulate health, housing, skill, insurance, credit, and food schemes for migrant workers,” she said.

Minimum wages

“We will conclude a process that began 20 years ago, with the implementation of the four labour codes. Minimum wages will be applied to all categories of workers. They will all be covered by the Employees State Insurance Corporation,” she said.

The compliance burden will be reduced with single registration and licensing for the employers, and a provision to submit returns online.

Welcoming the proposals, Sahil Sharma, Co-Founder and Chief Executive Officer of GigIndia, felt that such measures would streamline the gig economy, transforming it into a more organised sector.

“This should help attract more talent in the coming days,” he said.