Opinion: Secure future of gig workers
It is important that the government creates a social security cover for the booming gig economy.
Published Date – 12:45 AM Mon – 13 Feb 23
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By Nripendra Abhishek Nrip
Hyderabad: The Internet is a very powerful business platform. Many people have been able to generate good income through this network. In today’s digital world, the definition of employment and nature of work is also changing rapidly. A new global economy called ‘Gig Economy’ is fast emerging. The gig economy is a free market system in which temporary work opportunities generally exist and various organizations employ freelance workers for short-term tasks.
By 2024, the gig sector is expected to account for about 4% of India According to a report by financial services platform Stridevan, the total workforce. It is expected to provide employment to about 23.5 million workers by 2024, a threefold increase from just 8 million in 2020-21 – or 1.5 per cent of the workforce.
ubiquitous workforce
This type of work has grown in popularity in recent years because it is more productive. It offers flexibility and freedom and can be a cost-effective solution for businesses. gig worker Ubiquitous are the new workforce. These are the people who get us the food we order online, take us from home to office or wherever we want, and usually provide many services that go unnoticed.
There are two fundamental factors behind the growth of the gig economy in India. First, technological development. Technological changes have made it much easier to contract and find work for freelancers. Secondly, due to the stringent labor laws in India, many companies prefer to have contract workforce. Several changes made on both the digitization and labor fronts have helped.
missing attention
Indian government needs to pay more attention to the development of gig economy. This is because this economy is currently facing unemployment due to lack of inclusive growth.
Job creation in the gig economy will boost employment. In addition, Indians are facing the problem of unemployment stemming from agriculture. Gig economy will be able to provide gainful employment to such rural youth. This is also likely to improve competitiveness in the short term depending on the volume of work. Hiring freelance workers helps companies rationalize their workforce and reduce costs. This improves the competitiveness and efficiency of companies.
Workers also get freedom from gig economy, which can prove to be beneficial for them. It gives freedom to the workers to work as per their convenience without any fixed hours. They can change jobs according to their interest areas. There is opportunity for women in this economy. The requirement to work a fixed number of hours per day deters women from taking up formal sector jobs. The gig economy offers women jobs that offer flexibility in terms of working hours.
However, concerns exist about the lack of job security and benefits for such workers. guess that gig economy It will further expand in India in future and hence it should be supported by government rules and policies to protect the rights of workers and ensure fair treatment towards them. Many gig workers in India are not covered by the labor code and do not have access to benefits such as health insurance and retirement plans.
lack protection
A survey by Catalyst Fund and KarmaLife found that 88% of gig economy workers ran out of money before the end of the month. Most of them attributed this to rising household and fuel expenses. Ninety per cent of the employees surveyed also said that they would like to take a personal loan to meet their family expenses, but cannot do so due to the nature of their job. The survey also pointed out that around 40% of gig workers had no insurance, and only 24% had employer-provided insurance cover. The remaining 36% bought the insurance by paying the premium themselves.
According to research by Flourish Ventures, before the pandemic, most gig economy workers earned above Rs 25,000, while after the pandemic, nine out of ten workers were earning less than Rs 15,000. There are several possible reasons for this high income volatility. Gig workers in India are often paid less than traditional workers and lack the same legal protections.
The gig economy is heavily dependent on technology and internet access, which again creates a barrier for those who do not have access to these resources. This further increases inequality. Gig workers may lack the same social connections and support systems as traditional employees because they often work independently and lack a physical workplace.
The government is considering providing affordable medical care at subsidized rates to employees working in the gig economy at Employees’ State Insurance Corporation (ESIC) hospitals and dispensaries. This can provide relief to the workers associated with gig economy as companies have to pay for their employees.
The Social Security Code Bill, 2019 was introduced by the government in the Lok Sabha in the last session of Parliament. The Bill proposes to provide social security cover to workers working in the gig economy for the first time in India. It states that the government will bring a scheme to bring gig workers under the ambit of ESIC.
The Indian government should come out with clear rules and policies for the gig economy to ensure the safety of gig workers and hold companies accountable. The government should invest in education and training programs to improve the skills of gig workers and increase their income-earning potential.
