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Govt’s Bold Move to Safeguard Gig Workers: Zomato, Uber, and Ola to Face New Social Security Mandates

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The government is gearing up to introduce a social security scheme specifically designed for gig workers in platform-based jobs. This new initiative will focus on safeguarding the rights of workers in the rapidly growing gig economy, while also imposing obligations on companies like Zomato, Swiggy, Ola, and Uber that rely heavily on such workers.

Under the proposed scheme, these platforms, which currently classify workers as “partners” rather than employees, will be required to deduct a certain percentage from workers’ earnings and contribute it to a pension fund. The labour ministry has reportedly stated that the financial framework is being finalized and implementation is expected soon.

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In addition to the contributions from platforms, the government may also add its own contribution of 3-4% to the workers’ pension pots, further enhancing the security for gig workers.

The scheme is part of a broader effort to include gig workers from diverse sectors, including tech and freelancing, in social security schemes. This would extend benefits like health insurance and retirement savings to workers in the gig economy, addressing long-standing concerns about their lack of protection.

Despite previous attempts to regulate gig workers through the labour codes enacted a few years ago, many states have yet to fully implement these reforms. The new legislation is expected to require platforms to register gig workers, offer a 14-day notice period for termination with valid reasons, and hold platforms accountable for fair treatment.

This initiative follows a historic digital strike in November 2024 by women gig workers across India, who united to draw attention to exploitative working conditions. Their actions brought to light the fact that discounts offered by platforms during festive seasons often came at the expense of workers’ earnings, further exacerbating their financial struggles.

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Studies have consistently highlighted the difficulties faced by gig workers, with surveys showing that many, particularly cab drivers, work long hours for wages that do not cover their basic expenses. A recent app-based survey revealed that nearly 68% of respondents reported their costs outpacing their earnings.

This step by the government signals a crucial shift towards greater protection for gig economy workers, aiming to ensure fair wages and social security as the sector continues to grow.

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