Union Finance Minister Nirmala Sitharaman announced that social security benefits will be extended to gig and platform workers during her Budget speech in the Parliament on February 1, 2021.
The Finance Minister announced that the law on minimum wages would now apply to workers of all categories including those associated with platforms. She said that this will be ensured through new labour codes.
FM Sitharaman also assured that women will be allowed to work in all categories and also in night shifts with adequate protection.
The compliance burden on employers will also be reduced with a single registration and licensing and online returns.
Who is a gig worker? |
| According to the Labour Ministry, a gig worker is any person who performs work or participates in a work arrangement and earns from such activities outside of the traditional employer-employee relationship. |
New Portal for Migrant Workers
•The Finance Minister in her budget speech also proposed to launch a portal for Migrant Workers.
•She stated that the portal would collect all relevant information on gig and construction workers, including those working in building and construction, among others.
•The portal will help provide benefits to such workers such as help form relevant health, housing, skill, insurance credit & food schemes for such workers.
ESIC safety net extended to gig economy workers
•The Union Budget 2021-22 has proposed to cover such workers under the Employees State Insurance Corporation (ESIC).
•The extension of the safety net of ESIC and other social security benefits to gig economy workers was proposed by the government as a part of the reforms to the three labour codes, which was passed by the Lok Sabha in September 2020.
•The safety net, however, had come with its own limitations as the same set of reforms to the labour codes allowed firms greater flexibility in hiring and firing workers without any permission from the government.
Background
Currently, the government does not have any proper data on the possible number of gig economy workers in the country.
As per Industry experts, there are over 130 million gig economy workers in the country with many more expected to join the freelance workforce as formal jobs slowed dry up.
The Union Budget 2021-22 also proposed measures aimed at easing the compliance burden for startups as well as larger companies.
Comments
All Comments (0)
Join the conversation