Centre plans pension scheme for gig workers, firms to contribute | India News – The Times of India

NEW DELHI: In a major step to improve social safety for gig employees, labour and employment ministry is growing a transaction-based mostly pension coverage, with aggregators required to chip in with 1-2% of their annual turnover in the direction of the scheme. The initiative is focused at practically one crore platform employees throughout India, a govt supply mentioned on Friday.
Below the scheme, every gig employee will probably be assigned a common account quantity, enabling deductions based mostly on wage transactions throughout a number of platforms. Employers will contribute on a per-invoice foundation. “Discussions with state govts are underway, and the scheme will quickly be despatched for cupboard approval,” the supply added.
The initiative addresses the problem of figuring out employer accountability due to gig employees’ engagement with a number of platforms. This coverage aligns with the e-Shram portal, launched in Aug 2021 to register unorganised sector employees. As of Jan 27, 30.6 crore employees have registered on the platform, which integrates 12 social safety schemes.
In accordance to a 2022 NITI Aayog report, India had 77 lakh gig employees in 2020-21, with quantity now exceeding 1 crore. At the moment, 47% of gig jobs are medium-expert, 22% excessive-expert, and 31% low-expert.
The Social Safety Code, 2020, proposed a Nationwide Social Safety Board to suggest schemes for gig employees. Aggregators could contribute 1-2% of their annual turnover, capped at 5% of whole funds to gig employees.
Moreover, govt plans to lengthen gig employees’ protection below PMJAY for medical health insurance. The scheme is predicted to present a lot-wanted monetary stability for gig employees.