India Plans Welfare Provisions For Gig Workers
The Indian government intends to provide social-welfare provisions for 'gig' workers. The initiative will apply to all workers employed through sites such as Amazon, Uber, and even Zomato.
The plan, which will be incorporated into the Social Security Code, is likely to contain a variety of benefits for gig workers, including accident coverage, health insurance and retirement benefits.
Despite their non-traditional employment status, gig workers are important to India's economy, particularly during the Covid-19 outbreak. Furthermore, the government is concerned about an increase in claims from gig workers, as well as social-media campaigns targeting platforms for commission cutbacks and extended working hours.
The government is developing a system for gig workers that will be sponsored by both the federal and state governments. Regarding the proposed scheme and its potential costs, Amazon issued a media statement in which it stated that it has created more than 1.3 million jobs in India for delivery agents and sellers, including 140,000 in the last year.
While the government has yet to calculate the cost of suggested welfare measures, sources say that state-funded medical and accident insurance, a complaint-resolution mechanism, and employer payments to a fund are all being explored. Additionally, companies may be requested to contribute 1 to 2 per cent of their yearly sales or up to 5 per cent of employee payments to the security fund.
