Centre plans pension scheme for gig workers, firms to contribute

NEW DELHI: In a significant step to enhance social security for gig workers, labour and employment ministry is developing a transaction-based pension policy, with aggregators required to chip in with 1-2% of their annual turnover towards the scheme. The initiative is targeted at nearly one crore platform workers across India, a govt source said on Friday.

Under the scheme, each gig worker will be assigned a universal account number, enabling deductions based on wage transactions across multiple platforms. Employers will contribute on a per-bill basis. "Discussions with state govts are underway, and the scheme will soon be sent for cabinet approval," the source added.

The initiative addresses the challenge of determining employer responsibility due to gig workers' engagement with multiple platforms. This policy aligns with the e-Shram portal, launched in Aug 2021 to register unorganised sector workers. As of Jan 27, 30.6 crore workers have registered on the platform, which integrates 12 social security schemes.

According to a 2022 NITI Aayog report, India had 77 lakh gig workers in 2020-21, with number now exceeding 1 crore. Currently, 47% of gig jobs are medium-skilled, 22% high-skilled, and 31% low-skilled.

The Social Security Code, 2020, proposed a National Social Security Board to recommend schemes for gig workers. Aggregators may contribute 1-2% of their annual turnover, capped at 5% of total payments to gig workers.

Additionally, govt plans to extend gig workers' coverage under PMJAY for health insurance. The scheme is expected to provide much-needed financial stability for gig workers.