EPS for gig workers: Govt plans to launch social security scheme for gig workers
Jan 24, 2025
Synopsis
Providing social security for gig workers has become a key government priority, with multiple surveys highlighting the lack of adequate protections. The labour ministry has also been engaging with platforms to extend the benefits of existing schemes, such as Ayushman Bharat, and accident and life insurance, to gig workers.
The government is preparing to launch a social security contribution system for gig workers. Platforms employing these workers will be required to deduct a specific percentage of their payments and deposit it into the Employees' Pension Scheme. The government may also contribute an additional 3-4% of the amount deposited by the platform.
According to a TOI report, this initiative covers not only workers from food delivery and ride-hailing platforms but also software professionals and other gig economy workers. Social security provisions for gig workers were included in the labour codes enacted a few years ago. However, these codes have not yet been implemented as several states have yet to align with them.
Given that many gig workers operate across multiple platforms and perform diverse jobs, the entities making payments could more easily deduct and deposit the prescribed amounts with the Employees' Provident Fund Organisation.
"We are finalizing the details and hope to operationalize it soon," a senior labour ministry official stated, adding that the Centre is collaborating with states to push forward the labour codes, which are viewed as critical for businesses.
Social Security Code
The Social Security Code includes provisions for establishing a social security fund and offers health, accident, and other benefits. A few months ago, labour minister Mansukh Mandaviya suggested that the implementation of social security for gig workers could precede the full rollout of the labour codes.
A panel under a senior official has been set up to design the scheme’s implementation. The goal is to create a retirement savings mechanism that workers can access once they stop working, sources familiar with the discussions revealed.
Providing social security for gig workers has become a key government priority, with multiple surveys highlighting the lack of adequate protections. The labour ministry has also been engaging with platforms to extend the benefits of existing schemes, such as Ayushman Bharat, and accident and life insurance, to gig workers.
Additionally, some states have already announced measures to ensure social security for gig workers.
[The Economic Times]
