Social safety net for gig workers proposed

3 min read

News:Government has prepared a draft social security code for the informal and gig workers.

Facts:

Draft Social security code:

Social security for unorganized and gig workers:

  • The draft code has proposed to offer a slew of benefits from provident funds to health cover, accident insurance and education for children of informal and gig workers.
  • The code also says that the state governments may also unveil schemes related to provident fund, employment injury benefits, housing, educational schemes for children, skill upgradation for workers among others.

Existing labour laws that the code will merge:The code will merge the following 8 existing laws:

  • Employees Compensation Act, 1923 
  • Employees State Insurance Act, 1948 
  • Employees Provident Funds and miscellaneous act, 1952 
  • Maternity Benefit Act,1961 
  • Payment of Gratuity Act,1972 
  • Cine workers welfare fund act,1981 
  • Building and Other construction workers Cess Act,1996
  • Unorganized Workers Social Security Act,2008.

Maternity Benefit:

  • The draft code says that every woman is entitled to the payment of maternity benefit for the period of her actual absence.It includes the period immediately preceding the day of her delivery and the period immediately following her delivery.

Additional information:

What are gig workers?

  • The draft code defines a gig worker as a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.
  • The term gig economy has assumed significance with the proliferation of app-based services ranging from food delivery to taxis and other services.
  • The exact number of gig workers is unknown but a 2017 study had said that nearly one out of four gig workers in the world are in India.