India Expands Social Security for Gig Workers

Source: The post India Expands Social Security for Gig Workers has been created, based on the article “Drop the piecemeal ways to social security for workers” published in “The Hindu” on 11 April 2025. India Expands Social Security for Gig Workers.

UPSC Syllabus Topic: GS Paper2-Social Justice – Issues relating to development and management of Social Sector.

Context: India is moving towards establishing social security for gig and app-based workers, with a central scheme awaiting Cabinet approval. It includes Ayushman Bharat coverage, pension policies, and registration on the eShram portal. This effort marks a shift in acknowledging gig workers outside traditional employment structures and highlights the need for a universal social protection framework.

For detailed information on Gig Workers in India – Challenges and Way Forward read this article here

Problems with India’s Current Social Security System

1. Lack of international commitment: India has not ratified the ILO’s Social Security (Minimum Standards) Convention, 1952, despite being a founding member.
2. Weak legal framework: The Code on Social Security has vague definitions, reduced protections, and has faced many implementation issues.
3. Underperforming welfare boards:

• ₹70,744.16 crore collected for construction workers’ welfare remains unused.
• A CAG 2024 report revealed ₹221.8 crore in delayed remittances by 99 local bodies in Tamil Nadu.
• In Kerala, only 5 of 16 welfare boards functioned properly; some boards had no recorded beneficiaries.

Why is India Focusing on Social Security for Gig Workers?

1. Gig workers lack formal benefits because they operate outside traditional employer-employee structures.
2. The government’s new scheme aims to fill this gap. It includes:

• Health coverage under Ayushman Bharat.
• Registration on the eShram portal.
• Transaction-based pension using a universal account number to track earnings across platforms.

3. This model ensures multiple companies contribute to a single worker’s welfare, reflecting the reality that gig workers often have several employers.
4. The move comes after the failure of existing welfare systems, where large funds remain unused.
5. It reflects a shift toward a future-ready workforce, aiming to ensure no worker is left behind.

Way Forward for India’s Social Protection System

1. Treat the Social Security Code as a foundation: Use the Code as a starting point. States should go beyond its basic mandates to create stronger protections.
2. Implement universal protection: Design a system that covers all categories of workers, without exclusions based on job type.
3. Reform welfare boards: Ensure better use of funds and timely delivery of benefits, addressing past failures like the ₹70,744.16 crore unutilized fund.
4. Avoid piecemeal approaches: Stop relying on fragmented welfare schemes for specific worker groups. Build an inclusive and unified system.
5. Adapt to workforce changes: Create flexible systems that can respond to technological and economic shifts, protecting future worker categories.

Question for practice:

Examine the challenges in India’s current social security system and how the proposed scheme for gig and app-based workers aims to address them.