Theme: Labour | Gig economy's dilemma: How to ensure workers' social security in a shifting economy

In the latest episode of “The State of the Economy Podcast,” V Nivedita delves into the world of gig workers and the rising demand for their services in India. The recent reports indicate a surge in the need for gig workers, with various sectors embracing this flexible workforce. Moreover, the government has taken a significant step by passing legislation to protect gig workers, especially those in lower-skill roles. Dr. Deepika MG, Associate Professor, School of Business (Bengaluru Campus), Amrita Vishwa Vidyapeetham, talks on the complexities surrounding gig work and its diverse workforce. She emphasises that gig workers encompass a wide range of individuals, each with unique motivations and preferences for this type of employment. Some seek stability and work-life balance, while others value the freedom from employer control. Deepika also shares insights from her research on the gig economy, highlighting the reasons why workers in the transport and delivery sectors have gravitated towards gig work. For many, gig work offered an escape from the harsh conditions and lack of respect faced in the unorganised sector. As gig work continues to gain momentum, it becomes imperative to accurately estimate the size of the gig economy and the number of workers involved. One of the key challenges lies in providing social security benefits to gig workers. With their contractual nature, it becomes tricky for platforms to directly offer employment benefits. To address this, the government is encouraging the establishment of Welfare Boards and grievance redressal mechanisms. Companies in the gig economy will be required to contribute to these funds to secure benefits for their gig workers. Deepika stresses that clear classification of gig workers is crucial in determining who should be covered under social security schemes. However, the road to comprehensive social security for gig workers is not without obstacles. Defining social security for gig workers and classifying different types of gig workers remain major concerns. Nevertheless, states like Rajasthan have taken significant strides in formulating policies for gig workers, and it is expected that other states will soon follow suit. Podcast host and Producer: V Nivedita; Editor: Siddharth MC.