India’s gig workers win legal status, but access to social security remains elusive
India is undergoing a significant transformation in its gig economy, driven by the introduction of a new labor law aimed at enhancing protections for gig workers. This legislative shift is part of a broader effort to address the challenges faced by millions of individuals engaged in flexible, short-term jobs across various sectors, including ride-hailing, food delivery, and freelance services. The new law seeks to provide gig workers with essential benefits such as minimum wage guarantees, social security, and improved working conditions. However, experts and advocates argue that while this law is a step in the right direction, it falls short of delivering the comprehensive support that gig workers truly need.
The context of this legislative change is critical, as India’s gig economy has rapidly expanded over the past decade, fueled by technological advancements and changing consumer behaviors. According to recent estimates, the gig workforce in India is projected to grow to 23.5 million by 2029-30, highlighting the urgent need for protective measures. Despite the promising potential of gig work to offer flexibility and income opportunities, many workers face precarious conditions, including lack of job security, inadequate pay, and limited access to benefits. For instance, a significant portion of gig workers do not receive adequate compensation for their labor, often earning less than the minimum wage in their respective regions.
The new labor law, while commendable, requires robust implementation and further reforms to ensure that gig workers can truly benefit from its provisions. Experts emphasize the importance of establishing clear guidelines for registration, compliance, and enforcement, as well as creating a framework that allows gig workers to access social security benefits like health insurance and retirement savings. Additionally, there is a pressing need for greater awareness and education among gig workers about their rights and the resources available to them. As India navigates this complex landscape, the success of the gig economy will depend not only on legislative measures but also on the commitment of companies and policymakers to prioritize the welfare of workers who form the backbone of this burgeoning sector.
India is restructuring its gig economy with a new labor law, but much more is needed before gig workers see real benefits.
