Introduction

• Gig jobs refer to short-term, flexible, and often freelance work arrangements.
• Workers engage in temporary or contract-based projects/tasks.

Characteristics of Gig Jobs

1. Short-term: Duration ranges from a few hours to several months.
2. Flexible: Workers decide when and how much to work.
3. Freelance: Workers are independent contractors, not permanent employees.
4. Project-based: Jobs revolve around specific projects/tasks.
5. Variable income: Earnings depend on projects and clients.

Global and Indian Gig Economy Trends

• Gig and platform economy: A structural transformation of job sectors driven by digital technology.
• Global statistics:
  • 200 million gig workers worldwide.
  • India holds 8% of web-based and location-based platforms, second to the US (29%).
• Indian trends:
  • 8 million gig economy jobs in 2020, projected to increase to 90 million long-term.
  • Workforce projected to grow to 23.5 million by 2029-30 (NITI Aayog).

Types of Gig Workers

1. Platform-based workers:
   • Work through online platforms or apps.
   • Examples: Ride-hailing, food delivery, freelancing.
2. Non-platform workers:
   • Casual wage workers or part-time/full-time independent contractors.
   • Conventional sectors like construction or household work.

Key Drivers of India’s Gig Economy

1. Economic liberalisation and digital revolution.
2. Increased mobile and internet usage.
3. Expansion of retail e-commerce.
4. New business models, e.g., Uber, Ola, Zomato, Swiggy.

Challenges Faced by Gig Workers

1. Precarity and Instability:
   • Informal employment circumstances despite operating in “formal” organisations.
   • No workplace entitlements due to contractual obligations.
2. Social Security Issues:
   • Lack of EPF, pension, and health benefits.
   • Little to no negotiating power affecting pay and working conditions.
3. Earnings Decline:
   • Pre-COVID: Rs 12,000-15,000 per week.
   • Post-COVID: Rs 5,000-7,000 per week.

Policy Shifts

1. Code on Social Security 2020:
   • Provides life insurance, health benefits, and old-age protection.
   • Funded by government contributions and platform aggregators (1-5% of revenue).
   • Establishment of the National Social Security Board to oversee welfare schemes.
2. State Initiatives:
   • Rajasthan: Enacted Platform-Based Gig Workers (Registration and Welfare) Act (July 2023).
     • Welfare board and unique IDs for workers.
     • Payment monitoring system (CTIMS).
   • Karnataka:
     • Proposed gig worker welfare board with Rs 3,000 crore allocation.
     • Rs 4 lakh insurance coverage announced in the state budget.
   • Telangana: Developing policies for minimum wages and health benefits.

Broader Implications

1. Formal-Informal Divide:
   • Skills mismatch between informal workers and available jobs in cities.
   • Exacerbates unemployment and poverty, hindering India’s demographic dividend.
2. Need for Improved Governance:
   • Emphasis on social inclusion.
   • Strengthened regulation and state protection.

Conclusion

• While India’s gig economy holds tremendous potential, the lack of comprehensive policies on social security and worker protection limits its benefits.
• Policymakers must address skill mismatches, income instability, and governance to ensure inclusive growth.