Hindu Editorial Analysis : 18-May-2023
The Rajasthan government’s initiative to establish the Rajasthan Platform-Based Gig Workers Social Security and Welfare Fund marks an important step towards recognizing and addressing the needs of gig workers in India. The gig economy, characterized by individuals carrying out tasks for clients through online platforms, has gained significant traction in recent years. This essay explores the significance of the gig economy, the challenges faced by gig workers, and the need for a regulatory framework to protect their rights and ensure social security.
Understanding the Gig Economy
The gig economy revolves around independent workers who undertake tasks outside of traditional employer-employee arrangements. NITI Aayog defines gig workers as individuals engaged in income-earning activities through platforms like Ola, Uber, Dunzo, Swiggy, Zomato, and Urban Company. These workers operate on a task-by-task basis, facilitated by online platforms that handle payment transfers.
Significance of the Gig Economy
The gig economy offers several advantages for workers, businesses, and consumers alike. Its flexibility allows workers to choose their own hours and earn additional income, catering to the demand for flexible lifestyles. Some key benefits include:
- Time flexibility: Gig workers have the freedom to work according to their preferred schedule, providing them with a better work-life balance.
- Income flexibility: The gig economy allows individuals to supplement their primary income and earn additional money whenever needed.
Size and Growth of the Gig Economy
The gig economy has witnessed remarkable growth in India. According to NITI Aayog, medium-skilled jobs account for 47% of gig work, while high-skilled and low-skilled jobs make up 22% and 31%, respectively. In 2019-20, drivers and salespersons constituted over 52% of gig workers. The retail trade and sales sector employed around 26.6 lakh gig workers, followed by transportation (13 lakh), manufacturing (6.2 lakh), and finance and insurance activities (6.3 lakh). It is projected that India’s gig workforce, which was around 77 lakh in 2020-21, will reach 2.35 crore by 2029-30, making it a significant contributor to job creation.
Challenges Faced by Gig Workers
Despite the advantages of the gig economy, gig workers encounter various challenges that need to be addressed. These challenges include:
- Urban factor: Gig work is primarily concentrated in urban areas due to limited access to the internet and digital technology in rural regions.
- Job and income insecurity: Gig workers often lack the income security and social protection provided to traditional employees, leaving them vulnerable to economic fluctuations.
- Safety issues: Gig workers face occupational hazards such as road accidents, theft, physical assault, discrimination, and harassment. Female workers in app-based taxi and delivery services are particularly at risk.
- Work pressure: Algorithmic management practices and performance evaluations based on ratings can create intense work pressure for gig workers.
- Regulatory framework: The absence of a comprehensive regulatory framework leaves gig workers in a regulatory gray area, where their labor rights and social security are not adequately addressed. The current Code on Social Security does not sufficiently address the needs of gig and platform workers.
The Need for the Rajasthan Platform-Based Gig Workers Social Security and Welfare Fund
Recognizing the challenges faced by gig workers, the Rajasthan government’s initiative to establish the welfare fund is a significant step towards providing social security and welfare benefits. The fund aims to address income insecurity, safety concerns, and work pressure experienced by gig workers. It will ensure that these workers have access to financial assistance, healthcare, and other essential services.
Why In News
Taking a proactive step towards supporting gig workers, the Rajasthan government has unveiled its plans to establish the Rajasthan Platform-Based Gig Workers Social Security and Welfare Fund, making it the first such initiative in India. This welfare fund aims to provide social security benefits, financial assistance, and other welfare measures to gig workers operating through various digital platforms, ensuring their well-being and livelihood security in the gig economy.
MCQs about Empowering India’s Gig Economy
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What is the primary advantage of the gig economy for workers?
A. Fixed working hours
B. Stable income
C. Income flexibility
D. Job security
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Which sector has the highest number of gig workers in India?
A. Manufacturing
B. Transportation
C. Retail trade and sales
D. Finance and insurance
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What is one of the challenges faced by gig workers in the gig economy?
A. Lack of job opportunities
B. Limited access to digital technology
C. Fixed working hours
D. Guaranteed income security
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What is the purpose of the Rajasthan Platform-Based Gig Workers Social Security and Welfare Fund?
A. Promote job security in the gig economy
B. Provide financial assistance to gig workers
C. Regulate the gig economy platforms
D. Eliminate challenges faced by gig workers
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