The Indian government plans to advance the launch of social security benefits for workers employed in unorganised sectors potentially before the full implementation of the comprehensive Social Security Code, according to a report by The Economic Times. This development follows efforts by several states to introduce similar provisions within their local laws.

The Ministry of Labour and Employment has been engaged with aggregators operating in digital marketplaces for gig work, urging them to prepare for the extension of social security benefits to these temporary and freelance workers. A senior government official informed ET that various options for rolling out the benefits are being evaluated, with a final decision expected soon.

The ministry plans to issue a directive to states, encouraging them to expedite the enrollment of platform workers on the e-Shram portal. This initiative aims to establish a comprehensive database to facilitate a smooth nationwide rollout of the benefits scheme.

States such as Karnataka, Telangana, and Rajasthan have either implemented or are in the process of developing policies to offer health insurance and other benefits to local gig workers. A Niti Aayog report projected that India’s gig worker population, which stood at 7.7 million in 2020-21, could surge to 23.5 million by 2029-30.

Under the draft policy, which has been under discussion for over two years, aggregators are expected to contribute 1-2 percent of their revenue to a social security fund, with the government matching this contribution. The fund will be utilised to provide health insurance, income security, pensions, unemployment benefits, sickness and injury coverage, and maternity benefits, primarily through the Employees’ State Insurance Corporation.

In 2020, the labour ministry had set a precedence by notifying provisions related to the formation of an advisory board under the Code on Wages, demonstrating that certain sections of legislation can be implemented before the full Code is enacted. This approach aligns with the BJP’s promise in the election manifesto to register gig and platform workers and extend social security benefits to them.

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