NEW DELHI: The Centre is readying the launch of social security contributions by gig workers. The platforms will be asked to deduct a certain percentage of the payment they make to these workers and deposit it with the Employees’ Pension Scheme. Govt may also top it up with a 3-4% contribution of the deposit made by the platform.
Social security for gig workers, which does not just include food delivery and car ride apps but also software and other professionals, was part of the labour codes enacted a few years ago, which have not been implemented so far as all the states are not on board.
Since a number of gig workers work on multiple platforms, at times undertaking different jobs, it may be easier for the entities making the payment to deduct the prescribed amount and deposit it with the Employees’ Provident Fund Organisation.
“We are working out the details and we hope to operationalise it soon,” a senior labour ministry official told TOI, adding that the Centre is also working with states to get the labour codes moving as they are seen to be crucial for businesses.
The Social Security Code has provided for setting up a social security fund and also provides health and accident insurance along with other benefits. A few months ago, labour minister Mansukh Mandaviya had indicated that social security for gig workers may precede the implementation of the labour codes.
The ministry has set up a panel under a senior officer and it is looking at the way the scheme will be implemented, with the idea being that the money should be available as a retirement saving for the subscriber, who can then use it once she or he stops working, sources familiar with the discussions told TOI.
Providing social security to gig workers is a key aspect of govt’s agenda in the coming weeks as several surveys have shown that there is inadequate protection. In fact, the labour ministry was in talks with platforms to ensure that benefits of existing schemes such as Ayushman Bharat and accident and life insurance are made available.
Some states have also announced provisions to ensure social security of gig workers.
