GIG WORKERS: ECONOMY
NEWS: A case for regulating gig-based
work
WHAT’S IN THE NEWS?
Gig Economy Overview
Definition:
·
Workforce
participation and income generation via "gigs," single projects or
tasks for which a worker is hired (World Economic Forum).
Components:
·
Platform Workers: Work based on online apps or digital platforms (e.g.,
Zomato, Swiggy, Ola).
·
Non-Platform Workers: Casual wage and own-account workers in conventional
sectors, part-time or full-time.
Benefits:
- For Workers: Flexibility, autonomy, income opportunities,
skill development, inclusion.
- For
Employers: Access
to diverse talent, lower fixed costs, higher scalability, better customer
satisfaction.
- For
Customers: More
choice, convenience, quality, affordability.
Current Trends in India:
- Medium
Skilled Jobs:47% of gig work.
- High Skilled
Jobs:22% of gig
work.
- Low Skilled
Jobs: 31% of
gig work.
- Trend:Decline in medium-skilled jobs, increase in
low-skilled and high-skilled jobs.
Expected Trends:
- 2020-21: Gig workforce is 2.6% of the non-agricultural
workforce (1.5% of the total workforce).
- 2029-30: Gig workers expected to form 6.7% of the
non-agricultural workforce (4.1% of the total workforce).
Need for Regulation:
- Temporary
Nature: Less
protection, fewer benefits, and pecuniary discounts.
- Employment
Benefits: Need
for inclusion in traditional social protection systems (unemployment
benefits, sick pay, pensions).
- Insurance and
Financial Aids: Companies should contribute to insurance and social contributions.
- Income
Inequality: Regulation needed to enforce protections and combat inequality.
Existing Laws and Regulations:
Code on Wages, 2019: Universal minimum wage and floor wage for all sectors,
including gig workers.
Code on Social Security, 2020:
Recognition of gig
workers as a new occupational category.
Source: https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/92049/OPS/GTCD3EU5P.1+GHCD3GCHN.1.html